Two years ago, the New Orleans City Council charged Entergy New Orleans with finding a solution to provide reliable, safe and affordable power generation following the deactivation of the former Michoud units. After extensive and thorough analysis, we proposed a 226-megawatt natural gas-powered unit to the New Orleans City Council. Following more than 20 public meetings and a re-evaluation of our load forecast, we also proposed a smaller, 128-megawatt facility. The city will be well served by either option. 

After widespread public input, the council’s Utility Committee voted 4-1 Feb. 21 to adopt the smaller 128-megawatt facility. This also was recommended by the council’s advisors. 

The natural gas plants were presented to the council because the city needs local, reliable and affordable power generation. Independent third-party experts have testified the reasons for the proposed power plant are sound from economic, safety and cost-effective perspectives. Environmental and geology experts have analyzed both proposed units and concluded, respectively, that the surrounding neighborhoods will be safe from emissions and that neither facility will cause subsidence. 

Furthermore, Entergy New Orleans has implemented strategies to improve its transmission and distribution capabilities to prevent outages and get customers’ power back on after interruptions. In addition, adding renewable energy is a priority and the company is taking significant steps to do so. The proposed power plant will support the addition of renewables by providing local, reliable peaking generation.

The council’s Utility Committee and its advisors have spoken – the 128-megawatt natural gas plant is the best option. The future of our city is at risk without the New Orleans Power Station.

In this application, we present two options for the City Council to consider – a 128-megawatt unit or the 226-megawatt unit submitted in the original June 2016 filing.

Either unit will deliver significant benefits for our customers by providing the city with a long-term resource capable of supporting reliability in New Orleans, while taking into account ways to reduce environmental impact.

Highlights of both the 128 MW and 226 MW units include:

• Lower emissions.
• Minimal groundwater usage.
• Local generation to assist with grid stability and storm restoration.
• Reliable source of peaking and reserve capacity with fast-start ability.

We are working to select the best technology that will provide a modern and efficient facility, while meeting Entergy New Orleans’ long-term planning needs at the lowest reasonable cost to customers.

As always, our goal is to provide affordable, reliable and clean power to our customers – now and into the future. The proposed New Orleans Power Station fully supports that goal.

In light of the new information, and in order to best meet the needs of our valued community, Entergy New Orleans is conducting additional analyses and expects to make a supplemental filing in late June or early July. Current indications are that this filing will seek Council approval of either the original unit proposal, or an alternative proposal for a smaller megawatt unit that uses a different technology.

Highlights of the alternative proposal being considered include:

• Lower output.
• Lower groundwater usage.
• Lower emissions rates.
• Self-start capability to assist with storm restoration.

Entergy New Orleans has been listening to community voices and Council concerns. The upcoming filing will address these issues in detail as well as highlight why local generation is both necessary and good for the city of New Orleans. Entergy New Orleans is also committed to adding more renewable energy resources, such as solar, to its generation portfolio and expects to file a request for approval of these resources in 2017.

As always, our goal is to provide affordable, reliable and clean power to our customers. New Orleans is in need of a gas-fired, local power source to increase reliability, stabilize the grid, and serve the next generation of New Orleanians. Our commitment to this goal is unwavering.

Today, New Orleans lacks significant local power-generating capacity. We dropped from 781 MW to 1 MW following the summer 2016 deactivation of the 1960s-era Michoud plant. Relying on market purchases to meet New Orleans’ energy needs can be unreliable and costly, and doesn’t address the need for local generation. Therefore, to ensure reliability and affordability, we must move forward with the construction of the proposed New Orleans Power Station.

Entergy’s dedication to affordable, reliable and clean energy is unwavering, and the proposed New Orleans Power Station reinforces this commitment.

AFFORDABLE
– Natural gas is currently the most cost-efficient power source.
– Without this power station, the price of electricity could go up.

RELIABLE
– It will be the only source of reliable power generation located in Orleans Parish.
– Upgrade is needed to satisfy the city’s generation needs during times of high demand.
– Local power source leads to quicker outage restorations.

CLEAN
– Natural gas is a clean-burning fuel.
– Upgraded to reduce emissions – at least 96% below the clean air standards.
– Groundwater usage also will be reduced by at least 90%.