Dive Summary:
- In a letter to Louisiana Gov. Bobby Jindal and the state's legislative body, Republican Senator David Vitter and Jefferson Parish President John Young appealed for a constitutional amendment that would give parish officials and/or the state's Public Service Commission the power to force a utility company to sell its assets due to its failure to perform to expected standards.
- The request comes in the aftermath of Hurricane Isaac and a public uproar including two inquiries launched by the New Orleans City Council and the state's Public Service Commission to investigate Entergy's inability to quickly return service to 126,000 customers that were left without power by the storm.
- The letter indicates that a forced sale would allow a parish government, an alliance of government partners or another utility company to purchase the company's assets in a move that seeks to put pressure on utility companies to improve service.
From the article:
"... In a letter sent Tuesday to Louisiana Gov. Bobby Jindal and the state's legislative leaders, Vitter, the state's junior senator, and Jefferson Parish President John Young called for a constitutional amendment that would give the government the power to force a utility to sell its assets if it fails to perform, an option created to ensure reliability 'in those hopelessly rare cases when needed,' according to a copy obtained by the Times-Picayune.
According to the letter, a utility 'would receive fair market value for its assets, just as it currently does when a municipality expropriates its assets. The process is already well established for municipalities; you would simply be extending it beyond the municipal level.' ..."
