After Ida outages, utility proposals include city takeover

NEW ORLEANS (AP) — Amid calls for investigations following major power losses during Hurricane Ida, the power company subsidiary that provides electric service to New Orleans said Tuesday it's ready to discuss having the city assume control of the municipal power system.

That's one of four options Entergy New Orleans outlined in a news release as the company prepares for discussions with the City Council, which regulates the electric monopoly in the city.

The other options include a merger with another Entergy Corporation subsidiary, Entergy Louisiana; a sale of Entergy New Orleans to another public or private business; or establishing a spinoff company separate from Entergy Corporation.

The council's utility committee is scheduled to meet Wednesday. It's chairperson, Helena Moreno, last week called for an investigation of the generation and transmission problems that led to a blackout related to Ida; a study on retail competition and utility ownership in New Orleans and a management audit of Entergy New Orleans. She has also called for a suspension in any rate changes for the utility.

“It is obvious that we have reached a critical juncture in our relationship with the City Council,” said Entergy New Orleans CEO Rod West. “While we believe that the actions of Entergy New Orleans have always been in the best interest of our New Orleans customers, some members of the council have publicly expressed a different opinion." Without addressing specific Moreno proposals, West said the council could wind up "inflicting further financial decline" on the company and “adversely impacting” its ability “to provide quality service to its customers.”

Ida was a Category 4 hurricane when it struck Aug. 29, devastating much of southeast Louisiana. More than a million customers of...