Saturday, October 03, 2009

Entergy Increment Financing

Enjoy your surcharge.

Entergy Corp. has asked the Louisiana Public Service Commission for permission to use the same financing mechanism it used after hurricanes Katrina and Rita to pay for $420 million in damage from hurricanes Gustav and Ike and replenish $290 million in reserve funds so that it has money on-hand for future storms. The storms will cost customers a few dollars extra each month.

The financing mechanism, which involves having a state entity issue bonds and customers repay them through a special line item on their bills, makes it cheaper for customers because the state-backed entity can garner more favorable rates than Entergy could by using its own capital.


See they really are going out of their way to make your higher bill payments feel less bad than the only alternative they can imagine which is even higher bill payments.

If you don't like any increase at all, well, maybe you'll think twice before getting hit by more hurricanes in the future. Call it free-market hazard mitigation.

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