Entergy puts new Michoud power plant on hold

By Greg LaRose, glarose@nola.com,
NOLA.com | The Times-Picayune
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Entergy New Orleans has asked the City Council to place its proposed New Orleans Power Station in Michoud on hold after it says its projections show electricity demand will decrease over the next 20 years. 

Entergy New Orleans is halting plans for a $216 million power plant at Michoud while it determines whether the facility is necessary. The company confirmed Friday night (Feb. 17) it has asked the City Council, which regulates the utility, to suspend the approval process for its proposal.

Entergy has previously maintained its New Orleans Power Station is needed to help the city meet future electricity demand, especially during peak usage periods in the hot summer months and after hurricanes. A new natural gas-fired plant would replace a 1960s era power generation unit that was taken out of service last summer.
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The facility's construction cost would add another $5.84 per month -- around $70 for the year -- to household customer bills in its first 12 months in operation. The calculation is based on average consumption of 1,000 kilowatt-hours of electricity a month. Entergy leaders have said the proposed 226-megawatt plant is the cheapest way for New Orleans to meet its future power needs. Critics have argued the company's demand forecasts are inaccurate.


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