The New Orleans City Council voted 6-0 Thursday, passing the 31 percent Entergy rate increase for Algiers residents. The rate hike came as a big win for Entergy, with an increased rate being phased in over the next four years.
Originally, Entergy wanted a $12.9 million rate increase, but city officials negotiated and agreed on a settlement of a $9.3 million rate increase. Entergy said they hadn't increased their rate in over 28 years, which made it one of the lowest rates in the surrounding area.
'I think it's kind of inaccurate and misleading to the general public, because really the total amount we are paying out of pocket, which is really what matters to the consumer, is pretty close to what other people in regions are paying, especially other people with Entergy Louisiana,' Algiers Point resident Julie Ford said.
City council members said the rate hike is a reasonable settlement compared to the alternatives.
Entergy saidIf the settlement takes effect, the typical monthly electric residential bill for 1,000 kWh will increase from $79.23 to $87, a net increase of $7.77 during year one of the phased-in rate plan, which is among the lowest in Louisiana and the southern region.
Entergy cited a need for a rate hike because of rising costs, including fuel, but residents are already being charged a fuel surcharge.