Entergy Poised to Get Green Light for Gas Plant Despite Role in Paying Actors in Astroturf Campaign

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Updated 2/22/2019:ย On February 21, after over two hours of testimony mostly against Entergyโ€™s proposed gas plant, theย New Orleans City Council voted unanimouslyย ย to let the company keep its permit despite the paid actors scandal, clearing the way for the project toย proceed.ย 

Sparks flew at a New Orleans City Councilโ€™s utility committee meeting onย Valentineโ€™s Day, compelling the committee to delay votingย on a resolution thatย wouldย scrap plans toย rescind the permit for Entergyโ€™sย proposed $210 million natural gas power plantย in exchange for a $5 millionย fine.

The contentious permit was awarded to Entergy, which provides power to the city, on March 18, 2018, but theย city council’s third-partyย investigation ofย Entergy found the allegations that the company tookย part in an astroturf campaign to influence the vote for its proposedย Newย Orleans East gas plantย to beย true.ย The investigation concluded that the company was responsible for hiring paid actors, who were wearing t-shirts supporting theย plant,ย to fill councilย chambers and speak in support of theย project.

Opponents, includingย neighborhood groups and environmental activists, found out that the resolution to rescind the permit was pulled only a few days before the meeting. In its place,ย the committee would vote on a resolutionย allowing the permit to stand โ€” with added guidelinesย and a $5 million fine that would be turnedย over to the cityโ€™s Sewer and Waterย Board for neededย upgrades.ย 

Many in the crowd at a New Orlean city council utility committee meeting hold signs protesting the Entergy gas plant
Opponents to Entergyโ€™s gas plant holding up protest signs at the February 14ย meeting.

New Orleans City Councilmember Helena Moreno
Councilmember Helena Moreno listening intently at the February 14ย meeting.

Councilmember Helena Moreno, the committeeโ€™s chairperson,ย tried to letย down opponents of the power plant gently at the start of the meeting. She commendedย them forย their efforts, saying their work played a role in theย committee coming up with the new resolutionย that she believes offers the best outcome forย theย city.ย 

Moreno hailed Los Anglesย Mayor Eric Garcettiโ€™sย recent announcement that, in its move toย shift entirely to renewable energy, the city will close three gas power plants, but she pointed out that the plants would operate for another decade. And while the committeeย is committed to moving toward renewable energy, New Orleans needs aย solution for peak-demand outages now, she explained, saying Entergyโ€™sย proposed plant is the best solution available. Herย statement drew heckling andย led to over four hours of testimony, mostly against theย plant.ย 

Entergy New Orleans CEO David D. Ellis
Entergy New Orleans CEOย David D. Ellis at his first public meeting in New Orleans, where he recently took theย helm.

Representatives from the Sewer and Water Board of New Orleans and Entergy New Orleans, including its new CEO,ย David D. Ellis,ย welcomed theย resolution. However, though Entergy dropped its initial objection to paying a $5 million fine for its role in the paid actor scandal, Entergyโ€™s general counsel, Marcus Brown, asked to have the words โ€œsanctionsโ€ and โ€œpenaltiesโ€ removed from the resolution and replace with โ€œactions.โ€ His request drew ire from Moreno, who made it clear she hadย no intention of changing a word in theย resolution.ย 

Before the floor was opened for public comments, Councilmember Jay Banks further outraged opponents of the plant, accusing some of fear-mongering over potential health concerns and clarifying his controversial remarks that they allegedly had raised concerns about โ€œthree-headed babies.โ€

Ashley Walker, climate activist with 350 New Orleans
Ashley Walker of 350 New Orleans addressing Councilmember Banks at the February 14 Utility Committeeย meeting.

Ashleyย Walker, a member of the climate activist group 350 New Orleans, shamed him for criticizingย pregnant mothers with real concerns. She cited studies that show emissions from natural gas facilities can be detrimental to health, and challenged him toย point to a scientific study that says otherwise.ย He had mentioned Louisiana Department of Environmental Quality records concluding the proposed plant would have minimalย emissions.

Logan Burke, executive director of the advocacy group Alliance for Affordable Energy, criticized the committee for failing to fully consider alternative energy solutions. The Alliance for Affordable Energy provided a report from theย California consultant Strategen, which claimed that solar and other technologies could supplant the proposed 128-megawatt fossil fuelย plant.

New Orleans resident Robert Sullivan reminded the committee that choosing a gas plant over renewable energy options flies in the face of theย Paris Climate Accord, which the mayor has publicly supported.ย 

Some opponents compared the committeeโ€™s failure to rescind the permit toย theย NFL officials’ blown call during the January 20 New Orleans Saints game against the Los Angeles Rams.ย Aย โ€œno callโ€ on a blatant penalty arguably robbed the Saints of its chance to compete in the Super Bowl.ย They threw symbolic penalty flags throughout the meeting to make the point that New Orleans residents canโ€™t afford another badย call.

Many opponents called out the committee for pulling the promised resolution to vacate the permit โ€” a move introduced a couple months after the city council’s third-party investigation of Entergy. They said the $5 million fine is a separate issueย and should not be combined with the resolution about theย permit.ย 

Opponents of Entergy's proposed gas plant in New Orleans
Opponents to Entergyโ€™s gas plant holding up protest signs at the February 14 New Orleans City Council’s utilities committeeย meeting.

Happy Johnson speaking to the New Orleans City Council's utilities committee
Happy Johnson speaking to the city council’s utilitiesย committee.

Others reminded the committee that, as regulators of Entergy, it needed to hold the company accountable. Happy Johnson, author and humanitarian, said: โ€œIf this committee values real public input, then your best recourse is to repeal the previous vote and hold aย newย hearing.โ€

โ€œIf you do what is right for the people, we will stand with you,โ€ he said.ย The crowd chanted โ€œDo your jobโ€ as Johnson took hisย seat.ย 

Several members of New Orleans Eastโ€™s Vietnamese community that live in close proximity to the proposed plantโ€™s site, pleaded for the committee to rescind the permit. โ€œSometimes I wonder what we even come to these public hearings for,โ€ said Mark Nguyen, speaking on behalf of VAYLA, the Vietnamese American Young Leaders Association ofย New Orleans. โ€œAll we want is a fairย process.โ€

Monique Harden, with the Deep South Center for Environmental Justice, asked the committee not vote until February 21,ย when the full city council is scheduled toย meet โ€” and took them to task.ย โ€œYou have taken the occasion of Valentine’s Day to give Entergy a sweetheart deal,โ€ sheย said.

Harden is a participant in a lawsuit against theย city councilย that seeks to vacate the plantโ€™s approval.ย The suitย challenges the validity of Entergyโ€™s gas plantย proposal, and accuses the council’s team of regulatory advisers of having โ€œconflictingย rolesโ€ during the approvalย process.

The lawsuit, which Harden agreed to put on hold in January when the city council said it would put forth a resolution to rescind theย permit, made clear the suit would go forward in light of the committeeโ€™s about-face after bringing up a potential conflict of interest Councilmember Jay Banks failed to disclose.ย ย 

She and other opponents wanted all theย council members, rather than just the utility committee, take a public stance on the plantโ€™s future becauseย this decision will have consequences for the city for decades toย come.ย 

In the end, the committee relented and agreed not to vote on the resolution until the next full council meeting the followingย week.ย 

Main image:ย Opponents of Entergyโ€™s proposed natural gas plant packed the February 14 New Orleans City Council’s utility committeeย meeting.

Julie-Dermansky-022
Julie Dermansky is a multimedia reporter and artist based in New Orleans. She is an affiliate scholar at Rutgers Universityโ€™s Center for the Study of Genocide and Human Rights. Visit her website at www.jsdart.com.

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