Mayor LaToya Cantrell said the state has already allocated $ 20 million to the Sewerage & Water Board to incorporate a new Entergy substation planned for its Carrollton facility. It’s money she wants to keep despite New Orleans standing in line to receive a huge grant from the latest round of federal pandemic aid. Cantrell told an S&WB board meeting on Wednesday that she had heard Baton Rouge “rumble” about possible efforts to take back the state money. She said she would reach out to the New Orleans Legislative Delegation for assistance. The latest round of pandemic funds, part of the American Rescue Plan Act, includes $ 375 million for New Orleans – one of the largest grants for any U.S. city and by far the largest in Louisiana. Cantrell said money will offset the city’s spending and loss of tax revenue as a result of the COVID-19 outbreak. “No effort should be made to divert those (state) dollars that have been identified for the substation integration,” said Cantrell. The Sewerage & Water Board needs to borrow $ 34 million from Entergy’s finance department to pay for the substation, which is scheduled to go live in 2023. The state’s $ 20 million will be used to add this new power source to the facility’s existing grid, Ghassan Korban, executive director of the Sewerage & Water Board, said the utility will deploy nearly $ 30 million in federal funds that are already in place available for all of his power plant modernization plans. He is also filing an additional $ 46 million with the Federal Emergency Management Agency. Korban said the Sewerage & Water Board will tap multiple wells to spend $ 45 million on three more frequency converters needed for Entergy’s modern power generation, and hide it for use in its outdated drainage facility. A portion of $ 5 million will come from the 2019 Fair Share Agreement to align tourism tax revenue with urban infrastructure needs. Another $ 30 million will be borrowed from Entergy. Cantrell and other local officials are expected to explore several state ways to pay for Sewerage & Water Board projects. Without state or federal funding, the Sewerage & Water Board would likely have to reach out to customers to pay to upgrade its electrical grid. A series of 10% annual increases in S&W bills that started in 2013 ended last year. A rating service that reviews the utility’s ability to borrow money said a further increase in customer rate would likely be required if the government fails to pay the bill for their large-scale projects.

Mayor LaToya Cantrell said the state has already allocated $ 20 million to the Sewerage & Water Board to incorporate a new Entergy substation planned for its Carrollton facility. It’s money she wants to keep despite New Orleans poised to receive a huge allocation from the latest round of federal pandemic aid.

Cantrell told an S&WB board meeting Wednesday that she had heard Baton Rouge “rumble” about possible efforts to withdraw the state money. She said she would reach out to the New Orleans Legislative Delegation for assistance.

The latest round of pandemic funds, part of the American Rescue Plan Act, includes $ 375 million for New Orleans – one of the largest grants for a U.S. city and by far the largest in Louisiana. Cantrell said money was meant to offset the city’s expenses and lose tax revenue as a result of the COVID-19 outbreak.

“No effort should be made to divert those (state) dollars that have been identified for the substation integration,” said Cantrell.

The Sewerage & Water Board needs to borrow $ 34 million from Entergy’s finance department to pay for the substation, which is scheduled to go live in 2023. The state’s $ 20 million will be used to add this new power source to the facility’s existing grid.

Ghassan Korban, executive director of the Sewerage & Water Board, said the utility will already be putting $ 30 million in federal funds into its overall plans to modernize the power plant. It is also filing an additional $ 46 million with the Federal Emergency Management Agency, he said.

Korban said the Sewerage & Water Board will tap multiple sources to spend $ 45 million on three more frequency converters. This equipment is required to take advantage of Entergy’s modern form of electricity for use in obsolete drainage systems. A portion of $ 5 million will come from the 2019 Fair Share Agreement to align tourism tax revenue with the needs of the city’s infrastructure. Another $ 30 million will be borrowed from Entergy.

Cantrell and other local officials are expected to explore multiple government channels to pay for Sewerage & Water Board projects. Without state or federal funding, the Sewerage & Water Board would likely have to reach out to customers to pay to upgrade its electrical grid.

A series of 10% annual increases in S&W bills that started in 2013 ended last year. A rating service that reviews the utility’s ability to borrow money has determined that if the government fails to pay the bill for their large projects, further increases in customer rates would likely be required.