ELECTRIC POWER convenes in New Orleans at a time when our host utility, Entergy, is reporting strong growth in its indstrial load. Leo P. Denault, chairman and CEO, told an earnings conference call in mid February that over the next three years, Entergy projects a 2% – 2.25% compound average annual sales growth based on new or expanding industrial projects.
Most of the industrial projects identified so far are along the Louisiana Gulf Coast. Denault said that if the utility were to serve all of the new load, it would increase the local utility's peak load by almost 10%.
Andrew S. Marsh, CFO and executive vice president, said on the call that as of December 31, Entergy had around 85 projects totaling 2,400 MW of demand in its "potential" pipeline. Potential means the project has been announced, signed, or is under development with a strong possibility of being completed and ultimately served by Entergy. Of the 2,400 MW, Entergy has signed contracts to serve more than 1,000 MW. Another 500 MW of potential load is under construction.
Marsh said one example of a high-potential project under contract is Sasol's planned ethane cracker. In December, Entergy Gulf States Louisiana signed a six-year, up-to- 200-MW electric service agreement with that facility. It was the fourth such agreement announced in 2013.
At least some of the industrial load that Entergy is working to sign may be served by the Ninemile Unit 6 power plant, which is currently under construction near downtown New Orleans. Entergy is opening that facility to ELECTRIC POWER attendees on March 31 for an exclusive tour. Space is limited and the tour is almost sold out. For details, visit the ELECTRIC POWER registration page.
–David Wagman, Content Director
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