Tuesday, December 26, 2006

Almost $300 Million For Entergy While Victims of Hurricane Katrina SUFFER Still

This just in from our Washington Scandal Blog...While individuals and families struggle to rebuild from Hurricane Katrina, our taxes reimburse Entergy 90 cents on the dollar! What is wrong with THIS PICTURE? Meanwhile, they could have skipped their plan to BUY BACK STOCK to the TUNE OF $400 Million, and covered their OWN LOSSES. If Entergy gets 90 cents on the dollar in losses reimbursed, where is THAT SAME TREATMENT for the citizens?

Tuesday, December 26, 2006
After Hurricane Katrina, Little Money For Poor To Rebuilt Homes While Entergy Gets HUNDREDS OF MILLIONS!

Cost of Nuclear Energy Subsidized By Our Taxes While Families In New Orleans Do Without...

We all know the mistakes made in New Orleans, and other areas of the South in the aftermath of Hurricane Katrina, or do we? Let us pose a hypothetical question to America, and more importantly to those who have NOT BEEN ABLE TO REBUILD after Hurricane Katrina.

Imagine if you could have two choices...in the first choice, you could have your monthly utility rates go up as much as $48.00 a month, but in exchange for that increase in your utility rates, there would be and additional amount of grant money available in the form of block grants of over $300 MILLION dollars. In the second choice, your utility rates will still be increased by at least $15.00 per month, there will be no money for individuals to return to their homes and rebuild, but ONE COMPANY will recieve almost $300 Million in BLOCK GRANTS...which would you choose?

Sadly, you do not GET A CHOICE, government made it for you. In two states, Entergy has been awarded almost $300 MILLION in those very block grants...this becomes even more of a rape of victims of Hurricane Katrina when you realize Entergy has been quietly buying back stock with $400 MILLION they had set aside for that very purpose. They have $400 MILLION for stock buy backs, but want OUR TAXES to cover their losses from Hurrican Katrina? We are all in the wrong business! In short, the government has decided they have the money to COVER ENTERGY'S LOSES from Hurricane Katrina, but not your losses! Where is the public OUTCRY? Sure you will fine the excepts below from Entergy's Earnings Call to their key players very enligtening.

Entergy Q3 2006 Earnings Call Transcript
Posted on Oct 31st, 2006 with stocks: ETR



Good morning. We know many of you are preparing for the financial conference. We’re also aware that many [of you] are releasing earnings and holding teleconferences this week. With these activities in mind, I will try to keep to the highpoints, particularly on storm recovery. As a result of Governor Barbour's decisive timely actions, Entergy Mississippi has received Community Development Block Grant Funds in the amount of $81 million. The money is now officially in the bank. That’s equivalent to $0.90 on the dollar for Katrina's restoration cost just as Governor Barbour promised from day one.


And in New Orleans, two major milestones were reached last week when Entergy New Orleans filed its proposed plan for reorganizations with the US Bankruptcy Court and reached agreement with the New Orleans City Council on a rate plan.

Starting with the plan of reorganization, I'm particularly pleased to report that it anticipates full compensation to all Entergy New Orleans stakeholders. The proposed plan represents the combination of extensive efforts with federal, state, and local regulators, and law makers to gain support for Community Development Block Grants, rate relief, and insurance proceeds, each of which is critical to Entergy New Orleans emergence. The plan would enable Entergy New Orleans to emerge in a manner that ensures Entergy New Orleans customers are served by an ongoing financially viable entity, pay those creditors, and protects the rights of investors. Certainly, the plan is approved by the Bankruptcy Court and the creditors, Entergy New Orleans could emerge from bankruptcy before the end of 2007 following the completion of the precedent that are set forth in the plan. Perhaps the most important of these conditions is the receipt of the $200 million of community development block grant that was approved in mid- mid October by Louisiana Recovery Authority. We are pleased that Govern Blanco and members of the LRA recognized that community development block grants will help make Entergy's New Orleans customer rates more affordable than otherwise it would be, something that is clearly is important to the economic recovery of the city and of the state.

Other conditions call for reaching acceptable agreement with the New Orleans City Council on post storms filing that were made in June including creating a storm reserves to provide liquidity to meet future potential needs and receiving assurances that expected insurance claim proceeds of approximately $250 million for New Orleans.

On the regulatory recovery front, Entergy New Orleans reached a settlement agreement that was unanimously approved by the New Orleans City Council last Friday on a phased-in electric and gas base rate plan to be fully implemented by January 1, 2008, consistent with the [traditions] of the plan of reorganization that have been filed with the bankruptcy court.

The council also approves the creation of a $75 million storm reserve to be collected over a period of 10 years and establish emergency rate relief provisions to ensure that Entergy New Orleans will obtain a expedient rate relief to have the means, to maintain liquidity, and receive timely payments should a Hurricane Katrina-type event occur in the future, let's hope not.

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