Louisiana's Entergy customers owe $3.2 billion in grid repair costs: Here's how they'll pay

Louisiana's 1 million Entergy customers will pay $3.2 billion to reimburse the company its repair costs for five storms during 2020 and 2021 after the Public Service Commission agreed to the plan Wednesday.

Customers will pay an average of $10 per month for 15 years to pay for the damage caused by hurricanes Laura, Delta, and Zeta from 2020, winter storm Uri in 2021 and partial payment for Hurricane Ida from 2021.

Members of the commission that regulates Louisiana utilities voted 4-1 in favor of the plan.

More: Should north Louisiana pay for coastal hurricane power grid repair? Foster Campbell says no

Entergy will return to the commission later this year to ask for another $1.4 billion in reimbursements from ratepayers to complete its expense recovery from Hurricane Ida.

Commissioner Foster Campbell, a Democrat from Elm Grove who represents all of northern Louisiana, cast the only no vote, saying his constituents who live outside the impact zones of hurricanes should pay less.

It also irks Campbell that the company is entitled by law to recover all of its expenses from ratepayers.

Campbell said he was "deeply disturbed" Entergy Corp. CEO Leo Denault earned $16 million in total annual compensation in 2020 and that the company paid out $1.5 billion in dividends during the past two years while not contributing "one dime" to storm recovery.

"I'm sick of the free ride y'all get," Campbell said. "You're making (ratepayers) eat the whole mule."

But other commissioners argued Entergy's plan to secure the $3.2 billion on Wall Street at a 2.77% interest rate with the surcharge as collateral will save ratepayers money over the long haul rather than have the company borrow it from banks at 8% or more.

Read this: Hurricane Ida power restoration, repair costs could approach $3B in Louisiana: Who'll pay?

They also agreed that all customers must foot the bill equally.

"We are one state of citizens," said Commissioner Eric Skrmetta, a Republican from Metairie.

Skrmetta praised Entergy's response to Hurricane Ida, saying he was impressed by the company's effort.

"Thank you for getting it fixed as quick as you did," he said. "I'm going to support you getting your money back."

The surcharge is expected to be added sometime this summer.

Greg Hilburn covers Louisiana politics for the USA Today Network. Follow him on Twitter @GregHilburn1.

This article originally appeared on Lafayette Daily Advertiser: Here's how much Entergy customers have to pay for power grid repair