Editor and Publisher

MONTZ - The importance of the announcement by Entergy Corporation this week was made clear by the long list of public officials showing up at the press conference held here at the Little Gypsy electric plant.

Most top local and many state officials were on hand as CEO Renae Conley announced that Entergy is embarking on a $1.02 billion project that will convert the Little Gypsy plant from natural gas to using petroleum coke, a much less expensive byproduct of the oil refining process. The result to consumers will be electricity that takes 75 to 90 percent less expensive energy to create, thereby meaning a noticeable savings in electricity bills in the long haul.

The conversion of the plant will take until 2011 at the earliest, so consumers won't see the result on their bills anytime soon. But the importance of the announcement was clear as Conley explained the change.

“This will reduce our exposure to the cost increases we have seen from natural gas to produce electricity, and give us an alternative fuel that should keep electricity prices far lower in the long term,” she said. “We have a lot of the pet coke in this area due to all the refineries and it will be a great move for us to keep price down.”

Just how much consumers will see as a savings in their electricity bills is still uncertain, however Public Service Commission Jay Blossman said it could be as much as 10 percent in years to come, not to mention that this move should keep potential price increases from occurring.

“This will save money on electricity bills more than anything else we could probably do,” he said. “It's too hard to say at this time exactly how much it could save, but it might be as much as 10 percent, not to mention avoiding price increases should natural gas prices keep going higher.”

Conley made it clear that the reliance on using natural gas to produce electricity has been the prime reason prices have gone up.

“Natural gas was $3 per 1,000 cubic feet not long ago, and now we are seeing prices of $14 to $15,” she said. “So you can see why it has made electricity prices rise. The pet coke is much more inexpensive and in a large supply here.”

The press conference was highlighted by state senators and representatives, all three regional parish presidents, as well as plenty of parish council members and other public officials.

Conley expects the change to save consumers as much as $4 billion over 30 years on their electric bills.

“Power generated with pet coke or coal is significantly cheaper than power generated by natural gas, so this project will be a significant step in our efforts to reduce our reliance on natural gas,” she added.

The project will have a strong economic impact on St. Charles Parish, generating an estimated $412.7 million in new business sales. There will be 400 to 500 construction jobs at the peak of the conversion of the plant, and approximately 25 to 30 new long-term positions at the Little Gypsy site.

Louisiana based Shaw Group has been selected to be the engineer on the project.

The project still needs the approval of the Louisiana Public Service Commission.