Louisiana regulators have approved a nearly $200 million Entergy Louisiana transmission project, clearing the way for the utility to move forward with a new high-voltage power line on the North Shore. The project, known as the Adams Creek-Robert 230kV Project, calls for construction of a new 41-mile transmission line from the Adams Creek Substation north of Bogalusa to the Robert Substation, along with upgrades at several substations in Tangipahoa, St. Tammany and Washington parishes.
Project Details
Transmission lines are the large, high-voltage lines that move electricity across long distances before it is delivered to homes and businesses. Entergy has argued the project is needed to strengthen the grid in southeast Louisiana, support future industrial growth and reduce the risk of major reliability problems.
Administrative Law Judge Joy Guillot recommended that the commission deny the project, finding Entergy had not proven it was in the public interest or in the interest of affected ratepayers. However, the commission declined to adopt that recommendation without objection, and instead approved Commissioner Eric Skrmetta’s motion, allowing the project to proceed.
Skrmetta asserted in his motion that “the benefits of the project exceed the cost”. Skrmetta said the project would improve reliability, help prevent thermal overloads as large new power users are added to the system, and make the grid more resilient during extreme weather.
Opposition and Concerns
The Louisiana Energy Users Group, which represents large industrial customers, opposed approval. The group argued Entergy had not shown that enough new industrial demand is certain to materialize to justify the cost. It also argued that ratepayers should not be asked to fund a project of that size if cheaper or narrower fixes could address the immediate reliability concerns.
The estimated project cost is $197.7 million, though Entergy’s estimate includes a range of uncertainty. The project’s estimated annual retail revenue requirement is about $20.9 million, meaning the cost could eventually flow through customer rates, subject to later review.
Original reporting: KTBS 3 (Shreveport) — read the source article.
