DALLAS - The Louisiana State Bond Commission gave preliminary approval on Thursday for a plan to issue $1 billion of taxable utility system revenue bonds supported by a 10-year surcharge on electric customers in the state.

The bonds will be issued by the Louisiana Public Facilities Authority to provide $721 million of proceeds to Entergy Louisiana LLC and $291 million of proceeds to Entergy Gulf States Inc. The money will reimburse the utilities for their costs of restoring the electrical delivery systems after hurricanes Katrina and Rita in 2005, and establish a restoration reserve of $250 million for future storms.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.