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Entergy vice president of customer service Michelle Bourg speaks during the last meeting of the metro council for the year, Wednesday, December 11, 2024, at City Hall in Baton Rouge, La. STAFF PHOTO BY HILARY SCHEINUK District 6 council member Cleve Dunn, Jr., left, speaks with District 12 council member Jennifer Racca, right, during the last meeting of the metro council for the year, Wednesday, December 11, 2024, at City Hall in Baton Rouge, La.
STAFF PHOTO BY HILARY SCHEINUK District 10 council member Carolyn Coleman listens to conversation during the last meeting of the metro council for the year, Wednesday, December 11, 2024, at City Hall in Baton Rouge, La. STAFF PHOTO BY HILARY SCHEINUK District 6 council member Cleve Dunn, Jr. looks to a monitor as he listens to conversation during the last meeting of the metro council for the year, Wednesday, December 11, 2024, at City Hall in Baton Rouge, La.
STAFF PHOTO BY HILARY SCHEINUK Facebook Twitter WhatsApp SMS Email Print Copy article link Save The East Baton Rouge Metro Council may have found some extra funds for city-parish departments Wednesday night via a franchise fee put upon Entergy, softening the blow of a budget slashed by revenue lost to St. George. But the lifeline didn't come without stark pushback from Entergy, whose representatives claimed they must force that fee on customers in unincorporated areas.
However, some council members said the company's claims weren't true, and if this fee goes to customers, it's because Entergy doesn't want to pay it themselves. "We will not sit by our services are cut, our budgets are cut and let billion and trillion dollar companies off the hook," said District 6 council member Cleve Dunn Jr. 'Entergy can absorb this' The 5% fee — which would cost between $2 and $4 on customers' bills — will only apply to customers in unincorporated areas of the parish, as it is already present for customers in incorporated areas.
It would generate about $3.5 million annually in additional revenue for the city-parish's general fund budget. District 12 council member Jen Racca, who introduced the item to implement the fee alongside Dunn, said this revenue is crucial to a city-parish hit hard by a $50 million cut next year, felt by agencies like the District Attorney or the Baton Rouge Police Department, which had their budgets cut by more than $9 million combined.
Racca said these funds are pivotal to help ease the burden placed on city-parish departments whose function is crucial to public safety. "We did not want our constitutional offices and our offices that typically fight crime to be hindered in any way, shape or form," Racca said. Still contending that the Louisiana Public Service Commission said a franchise fee must be paid by the customers, Entergy Vice President of Customer Service Michelle Bourg said there was too little time for them to inform customers of the up to $4 fee as the law requires.
The Entergy representative added they were not given ample opportunity to review the language instituting the fee, though some on Metro Council questioned Entergy's claims of ignorance. "We learned about (the fee) the day of introduction two weeks ago," Bourg said. Dunn said that the two-week span was "plenty" of time for a "billion or trillion dollar company" to review.
District 10 council member Carolyn Coleman pressed Bourg on the company's ability to absorb the fee. "I want everybody to understand what we're saying," Coleman said. "It's either yes or no .
.. the billion-dollar company cannot absorb this is what you're telling me?" "It will not," Bourg said.
Dunn said Bourg's reply showed she was "skating and dancing all around the truth" and that the company had full knowledge of what was being proposed. And if they so chose, Entergy could negotiate with the PSC to absorb the fee themselves, according to what Dunn said the commission told him. "She will not say that they do not have to pass it on.
They can absorb this, and they should absorb it. They should not pass it on to the customer," he said. After Wednesday's meeting, Public Services Commissioner Davante Lewis confirmed to The Advocate that Entergy is not required to pass the franchise fee onto customers and could choose against doing so.
What the fee will pay for The fee was approved by the council with just two members voting against it. District 3 Council member Rowdy Gaudet voted no after asking for it to be deferred into the new year, as did District 9 Council member Dwight Hudson. On Dec.
18, the council will hold a public hearing over amending the 2025 budget in relation to the funds generated from the Entergy fee. As proposed by Racca and Dunn, the DA's office and the 19th District Court would each receive an additional $500,000 in their budget. BRPD, the Public Defender's office and the Parish Attorney's office would each receive $250,000 if the item is approved next week.
Additionally, Build Baton Rouge — the parish's redevelopment authority — would receive $200,000, while each Metro Council district would get $105,000 focused towards supporting services for residents. A little less than $300,000 of excess funding will be allocated to the general fund for the incoming mayoral administration to put towards projects, Racca said. In response to cries of the move being made too quickly, Racca said next year's slashed budget required she and Dunn to act fast.
"We know that our departments are getting cut. That's coming," she said. "This isn't a knee-jerk reaction.
We (had) to move forward.".
