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N.O. council approves Entergy cut

Section: Business

Bruce Eggler

A reduction in Entergy New Orleans' electric rates and the creation of a task force to look at problems associated with Mardi Gras Indian and second-line parades were among the issues the New Orleans City Council tackled recently.

The council unanimously approved Entergy New Orleans' request to lower electric rates. Starting this month, and lasting 15 months, customers will receive a credit on their bills. Entergy officials said they were able to offer the reduction because the city has repopulated faster than expected since Hurricane Katrina.

As a result of a Dec. 20 council decision, customers will see their base rates go down 6.15 percent. The credit will amount to about $3 for a customer who uses 1,000 megawatts of electricity each month.

Entergy New Orleans will collect $13.1 million less in revenue in 2008 because of the reduction. About $10.6 million will go to customers, while $2.5 million will be used for a customer-benefit program to be announced this month.

Entergy had estimated it would have about 60 percent, or 110,000, of its customers back by November. The actual number was 125,000 customers, meaning Entergy would collect more money than needed to cover its basic operating expenses.

By law, Entergy New Orleans could have continued to collect the money until the City Council reviews its rates in March 2009.

Company President Rod West said Entergy wanted to reduce its rates earlier to recognize the support that the city and the City Council gave the company to help it exit post-Katrina bankruptcy in May.

The City Council also adopted an ordinance establishing a Second-Line and Mardi Gras Indian Cultural Preservation Task Force, following up on an earlier resolution calling for creation of such a body.

Both were introduced by Councilman James Carter to improve the New Orleans Police Department's relations with Mardi Gras Indian groups and second-line parading organizations.

The ordinance states that the 11-member task force is "designed to protect and preserve the cultural institutions of second-lining, Mardi Gras Indians, social aid and pleasure clubs, and spontaneous funeral processions in New Orleans."

Such processions have often resulted in confrontations with police in recent years. On Oct. 1, for example, police broke up a second-line parade in Treme and took Rebirth Brass Band snare drummer Derrick Tabb and his brother, trombonist Glen David Andrews, into custody.

Both men received summonses for disturbing the peace by unlawful assembly and for not having a parade permit. They said they were playing in a memorial procession for a friend who had died a few days earlier. Police said they received complaints about the parade from residents.

Carter's ordinance states "there must be open communication and cooperation between the citizenry and the Police Department," resulting in "policies and procedures that are culturally sensitive" yet "ensure the maintenance of order and the protection of public safety."

The task force members, including representatives from "appropriate neighborhood organizations and city departments," will be appointed by the council's Criminal Justice Committee; Carter is chairman of that panel.

The group will make recommendations to the full council.

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