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New Orleans lawyers have filed a class-action lawsuit against Entergy that accuses the company of “negligence and failure to transmit energy to its customers” due to a weak system after Hurricane Ida traveled South Louisiana.
Attorneys Stuart Smith, Juan LaFonta, Andrew Jacoby, and Jack Harang filed the suit in Orleans Civil District Court against Entergy Corporation, Entergy New Orleans, and Entergy Louisiana on behalf of Entergy customers. So far, it’s reported that 17 Entergy customers are suing, but more are expected to join in on the case.
While the company and subcontractors have been working around the clock to restore power to almost one million customers, the lawsuit claims that in the case of Hurricane Ida, “Entergy through their grossly inadequate maintenance and inspection program failed miserably in that obligation by using antiquated equipment, shotty maintenance, and lies to the City, the State, and their customers.”
A statement from the lawyers blames the state of Entergy’s infrastructure that has caused prolonged power outages in the south. There were two studies completed, one in 2007, and 2016, that showed the company knew the grid had to be strengthened, according to the lawyers.
The suit claims that Entergy did not invest money from its customers to “harden the system” by burying utilities or by making sure there were proper backup systems. During the storm, an Entergy transmission tower collapsed along with seven other transmission towers.
The lawsuit claims that Entergy makes $11 billion a year while repeatedly deferring maintenance on critical transmission systems of high-voltage wires, towers, and poles. Smith, one of the attorneys in the suit, said “Entergy has been keenly aware of the shortfalls in their infrastructure for over a decade. They knew their facilities were not sufficient to withstand severe weather, yet instead of upgrading their grid … they pocketed that money and sent all-time-high profits to their shareholders instead of protecting the health, welfare, safety, and lives of Louisiana residents.”
According to the statement, the infrastructure could not withstand a minor hurricane, nonetheless, one of Ida’s strength. During a press conference post-Ida, there was a question posed about moving transmission and distribution of infrastructure underground, but according to an Entergy Louisiana official during a hearing Monday, a 2009 study estimated the cost would be $59 billion.
“Where we’re located, they were not supposed to come down with that type of wind gusts,” Lafonta said. “You have almost a half-a-billion dollars and you’re telling me that this rusted system is robust and the ratepayers of New Orleans should continue to pay for you to make those kinds of profits without any accountability? That’s not going to happen.”
Entergy declined to comment.
Click here to read the lawsuit
