Improved gas service reliability for customers

New Orleans, La. –Entergy New Orleans, Inc. reached a three-year milestone this month by rebuilding 135 miles of gas lines throughout the city - ahead of schedule and under budget. In addition, the world’s largest gas rebuild effort that was launched in 2007 following Hurricane Katrina has improved gas service reliability to Entergy New Orleans’ customers by reducing water-related outages by 50 percent since 2006.

“The gas rebuild project is part of our company’s commitment to provide safe and reliable service to our 96,000 natural gas customers in New Orleans,” said Rod West, president and chief executive officer, Entergy New Orleans, Inc. “Although the system was functional just after Hurricane Katrina, the corrosive effects of the brackish floodwaters presented issues for future natural gas service availability and reliability. Entergy New Orleans approached this rebuild as an opportunity to replace the damaged system with the latest technology to provide optimal, cost-efficient service to our customers.”

Through innovations and continuous process improvements, Entergy New Orleans is approximately $5 million under budget during the first phase of the project. The project also projected 130 miles of pipe replacement in the first three years. Currently, Entergy New Orleans is ahead of schedule by replacing more than 135 miles of the system.

Based on its strategic planning, efficiency and timeliness, McGraw-Hill’s Platts, the leading international energy information provider, recently recognized Entergy New Orleans’ gas rebuild project as Global Infrastructure Project of the Year on Dec. 3 at a ceremony in New York City.

Customer Benefits

Through the use of new technology, the gas rebuild project focuses on the customer by increasing service reliability and practically eliminating any traffic or business and home access disruptions during the restoration process.

Entergy New Orleans is replacing cast iron and steel pipes with high-density polyethylene gas pipes while also converting the low-pressure gas system to a high-pressure system. The new gas pipe resists saltwater corrosion and is quicker to repair compared to the cast iron or steel traditionally used for gas systems, while the high-pressure system is virtually impervious to flooding.
Entergy New Orleans is also using a combination of state-of-the-art drilling technology and modern distribution piping causing less disruption to customers.

“By using a drilling process called directional boring, crews spend less time performing the work,” said Sherri Winslow, vice president of Entergy’s gas business. “We do not have to dig up streets or entire sidewalks and it’s approximately 40 percent cheaper per mile than installing steel pipe with open trenching. We also moved the location of most main lines from the street to the sidewalk or grassy areas, which allows other utilities like the city to make street repairs without causing any disruption or duplication of efforts.”

Project Strategy Enabling Success – No Rate Impact

When Entergy New Orleans made its original project filing with the New Orleans City Council in 2007, the company proposed three-year period intervals for reviews to best align to a condition-based strategy of rebuilding the system.

“We recognized that the corrosive effects of the flooding would impact various areas of the gas system differently over time and repopulation of the city may require the company to target new areas,” Winslow said. “The gas rebuild schedule is based on criteria such as reliability issues, pipe sample results, coordination with city projects and population. Our condition-based approach has provided us the flexibility to ensure safe, reliable service to our customers while remaining under budget and ahead of schedule.”

Entergy New Orleans fought for alternative sources of funds for costs associated with Hurricane Katrina damage in order to mitigate costs to the customer, such as Community Development Block Grant funds and insurance proceeds. As a result there has not been an impact on customer rates during the first three years of the rebuild project and Entergy New Orleans does not anticipate any impact on rates over the next three years as well.

An Informed Public

Entergy New Orleans gas customers receive a letter by mail explaining the project and a description of the work planned for their neighborhood about four to eight weeks ahead of time. Entergy New Orleans gas customers can also visit entergy-neworleans.com for more information on the gas rebuild project or call 1-800-ENTERGY.

Entergy New Orleans, Inc. is an electric and gas utility serving Orleans Parish and is a subsidiary of Entergy Corporation. The company provides electricity to approximately 150,000 customers and natural gas to approximately 96,000 customers in Orleans Parish.

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