Lake Charles awaits a $2 billion decision today

Lake Charles is awaiting a $2 billion decision today. Leucadia Corp. and Entergy are expected to return before the Louisiana Public Service Commission with the outcome of their second round at negotiations over the purchase of synthetic natural gas. The two are at odds over a 30-year contract, which Leucadia insists is critical because it looks to Entergy to be a primary customer. So what does that mean for the Lake Charles Cogeneration project if the two sides can’t reach an agreement? That’s literally the $2 billion question. Lake Charles Mayor Randy Roach says the community tried its best to make both sides understand the its importance. “It’s a major project for us,” he says. “We’re talking 3,000 construction jobs and 150 permanent jobs. We understand each party here has their financial and business issues they have to consider, but we’re encouraging both parties to find a way to work out an agreement.” After two years of discussion, Entergy walked away from the deal in October. Leucadia appealed to the PSC last month to intervene, but the move was tabled until the April meeting with a request that the two parties attempt to renegotiate. Leucadia says it can save customers $400 million in utility costs over 30 years, but Entergy Vice President Mike Twomey insists the contract as initially proposed “would put our customers at great risk.” The meeting is set for 9 a.m. in Baton Rouge. – P.F.