No White House Bailout for New Orleans Utility
The White House has declined to bail out New Orleans' bankrupt utility company, prompting dismay among local officials who see the decision as an indication that the Bush administration is not committed to rebuilding the city after Hurricane Katrina.
There was still a chance, officials here said, that assistance could come through congressional action or federal grants. But because Entergy Corp. is a regulated monopoly, they said, the decision makes it likely that the utility will be forced to pass on to the public the $350-million bill for its recovery.
Residents could see their bills soar by 140% at a time when few can afford it, said Clint Vince, who advises the City Council on energy matters. He acknowledged that utilities frequently passed natural-disaster losses on to their customers, but said the scope of the calamity in New Orleans made that impossible.
"You can't place this on their backs," he said. "We have met with the White House and articulated that. And not only have we not gotten support, we have gotten opposition. It's inconceivable."
Link Here
There was still a chance, officials here said, that assistance could come through congressional action or federal grants. But because Entergy Corp. is a regulated monopoly, they said, the decision makes it likely that the utility will be forced to pass on to the public the $350-million bill for its recovery.
Residents could see their bills soar by 140% at a time when few can afford it, said Clint Vince, who advises the City Council on energy matters. He acknowledged that utilities frequently passed natural-disaster losses on to their customers, but said the scope of the calamity in New Orleans made that impossible.
"You can't place this on their backs," he said. "We have met with the White House and articulated that. And not only have we not gotten support, we have gotten opposition. It's inconceivable."
Link Here
posted by Kangaroo Brisbane Australia at 2:01 PM
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