Both Entergy Louisiana and the Louisiana Public Service Commission have worked to reduce the impact of storm recovery costs on customers by pursuing alternative methods of cost recovery, including financing the restoration costs and the establishment of a storm reserve. Below are answers to some commonly asked questions.

Why is there a storm restoration charge on my bill? How long will we have to pay for these storms?

The storm restoration charge on your bill represents the monies collected to pay for the financing of the storm costs and storm reserves associated with three different hurricanes –  Gustav, Ike and Isaac. We used special bond financing options that are spread over a number of years to save our customers millions of dollars. The bonds used to finance hurricanes Katrina and Rita costs have been repaid and are no longer included in the storm restoration line item. Gustav and Ike started in 2010 and will expire in 2022. Isaac started in 2014 and will expire in 2026.

The storm restoration offset line item on your bill represents customer savings realized because of the special financing approved by the LPSC. Both the storm restoration charge and the storm restoration offset line item are subject to adjustments during the year.

Why do I have to pay for a hurricane that did not affect me?

Like other costs to generate and transmit electricity for customers, the LPSC-approved storm restoration costs are shared among customers who are served by the utility. Because customers are vulnerable to unexpected weather events such as hurricanes in southeast Louisiana and ice storms in northern Louisiana, spreading the costs among all customers keeps the impact of storm recovery on individuals as low as possible.

Don’t you already get federal money to restore your system after these storms?

Entergy Louisiana does not receive federal funding to cover the costs of rebuilding the electrical grid following storms.

Why is there a storm reserve? 

Utilities have to spend large sums immediately after the storm has passed in order to get electricity restored as soon as possible. By funding the storm reserve via the storm restoration charge, the LPSC and Entergy Louisiana were able to establish a reserve for future storms at a low cost to customers to ensure that adequate funds are available.