NEW ORLEANS, LOUISIANA -- The company has laid four preliminary options before the city council for consideration.

Entergy Corp. has proposed four preliminary options for the future operation and ownership of its subsidiary, Entergy New Orleans, in wake of the New Orleans City Council considering new oversight measures for the utility in the aftermath of Hurricane Ida.

Entergy New Orleans, formerly known as the New Orleans Public Service Inc., has been in operation for more than 100 years, providing electric and gas operations within city limits. As a result, it is regulated by the New Orleans City Council.

"Despite a comprehensive and dedicated restoration effort that saw the overwhelming majority of New Orleans customers' power restored within a week after the strongest hurricane ever to hit our region, several members of the council have expressed their intent to introduce and support a process that could potentially have another entity own and operate electric and gas service in the city," said Rod West, utility group president of Entergy Corp. "We are positioned to support the City Council as they evaluate various options and prepared to move forward with whatever path the council chooses.", he went on.

Entergy has laid four preliminary options before the city council for consideration. Firstly, merging Entergy New Orleans with Entergy Louisiana to create a single, larger company. Secondly, selling Entergy New Orleans to another public utility or entity, while retaining the city council's regulatory authority over it. Thirdly, spinning off Entergy New Orleans into its own standalone company and lastly, a municipalization of Entergy New Orleans' assets by the city, which would enable the council to directly manage its electric and gas systems.

Entergy said how a merger with Entergy New Orleans (ENO) would bring lower rates to New Orleans residents, create a larger company with stronger financial strength for investments, and spread the risk of storm costs across a larger customer base.

The city council's Utility, Cable, Telecommunications and Technology Committee recently met to discuss all current issues and a decision is still pending.

Source: Daily Energy Insider