Source: Entergy
Entergy Corp. (NYSE: ETR) subsidiary Entergy New Orleans, Inc. has received permission from the New Orleans City Council Utility Committee to purchase 20 percent of the electricity produced by a proposed gas-fired generating unit at the Ninemile Point power plant.
The issue will now go to the consent agenda to be voted on at the February 2nd City Council meeting.
The Louisiana Public Service Commission is reviewing plans for the natural gas-fired unit, which would be known as Ninemile 6 and owned by Entergy Louisiana, LLC. If approved by the LPSC, construction would begin later this year with an expected operation date set for mid-2015.
“We view this purchase agreement as a solid investment for our customers,” said Charles Rice, president and chief executive officer of Entergy New Orleans, Inc. “The city of New Orleans continues to grow, and this addition to our generation mix will help us continue to provide safe, reliable power at the lowest reasonable cost to our customers for years to come.”
As one of the most efficient gas-fired units in the Entergy fleet, Ninemile 6 could produce fuel savings for Entergy customers in Louisiana ranging from $26 million to $53 million per year. The new unit would also improve reliability in south Louisiana by providing efficient generation near the large population of the New Orleans metropolitan area.
The state-of-the-art unit will use modern pollution controls and combined-cycle gas turbine (CCGT) technology to produce highly efficient, clean and reliable power, and is expected to cost approximately $721 million to construct. The proposed unit would be located at the site of the existing Ninemile Point power plant near Westwego, La. Locating the unit on the site of an existing power plant and near such infrastructure as transmission lines is expected to help reduce construction costs.
