Entergy delivers nearly $500M in economic impact for greater New Orleans region

Rhea-AI Summary

Entergy, Inc. (ETR) contributes nearly half of $1 billion in economic benefits to the greater New Orleans region, creating jobs and boosting the local economy. The company's low-cost electricity attracts critical investments, leading to nearly $500 million in sales in the city in 2021. Entergy's headquarters in New Orleans supports thousands of jobs, generates sales for local businesses, and creates major tax revenue for the parish and the state.

Insights

Economist

The presence of Entergy's headquarters in New Orleans has evidently played a pivotal role in the local economy, as highlighted by the study conducted by Dr. Loren Scott. The direct correlation between corporate presence and economic stimulation is a well-established concept in economics. Entergy's contribution to the region goes beyond the provision of low-cost electricity; it acts as a catalyst for employment and sales within the city, which in turn has a multiplier effect. This effect is quantifiable, with 2.8 jobs being created statewide for every job at Entergy's headquarters and 1.4 jobs in Orleans Parish.

Moreover, the company's average wage offering is significantly above the parish average, which suggests a positive impact on the standard of living and consumer spending power. Entergy's tax contributions and support for non-profits also indicate a strong corporate citizenship aspect, which can enhance the company's reputation and foster goodwill in the community. The planned $1 billion investment in grid hardening projects underscores a commitment to infrastructure development, which is essential for long-term economic resilience and growth.

Market Research Analyst

From a market perspective, Entergy's economic impact study underscores the company's substantial role in the regional economy of New Orleans. This kind of economic influence can be a significant factor in attracting further investment to the region, potentially leading to a virtuous cycle of economic growth and development. The high average wage offered by Entergy is indicative of the caliber of jobs provided, which could contribute positively to the consumer base and local demand for goods and services.

Entergy's announcement of future infrastructure investments may also be seen as a forward-looking move, likely to be received positively by investors. Such investments can improve the reliability and efficiency of the energy grid, which is crucial for both residential consumers and businesses. This, combined with the company's consistent recognition as a top utility for economic development, may contribute to a favorable perception among stakeholders and could be a factor in stock market valuation.

Financial Analyst

Analyzing Entergy's financial influence on the New Orleans economy, the reported $500 million in sales and the subsequent job creation have tangible implications for the company's financial health and future prospects. The substantial tax payments and charitable contributions reflect a robust financial position, potentially translating into investor confidence. Furthermore, the strategic investment in grid hardening projects not only addresses the critical need for infrastructure resilience but also signals to investors that Entergy is positioning itself for sustainable growth.

The reported earnings in the oil and gas extraction sector provide context for understanding Entergy's economic weight within the local industry. The comparison underscores the company's role as a significant economic player, which can be a reassuring signal to shareholders about the company's market position and stability. This information can be instrumental for investors when assessing the company's long-term value and its potential impact on stock performance.

Company's actions strengthen communities, create jobs and boost the local economy

NEW ORLEANS, Jan. 4, 2024 /PRNewswire/ -- The greater New Orleans region is enjoying nearly half of $1 billion dollars in economic benefits because the city is host to the corporate headquarters for Entergy, the city's only Fortune 500 company. According to a recent study by Louisiana State University economist Dr. Loren Scott, Entergy's total economic impact in New Orleans reached nearly $500 million in sales in the city in 2021.

"Entergy's low-cost electricity is helping attract critical investments and is creating jobs making the company a significant economic engine for the economy," said Rod West, Entergy's group president of utility operations. "Our commitment can be felt throughout the state. For every job created at Entergy's headquarters, 2.8 jobs are created elsewhere in the state and in New Orleans specifically, for every job created 1.4 jobs are created elsewhere in Orleans Parish's economy."

"Having Entergy's headquarters located here in New Orleans makes a huge impact on our city's economy, and on the state of Louisiana," said Deanna Rodriguez, president and CEO of Entergy New Orleans. "We've always had a sense of that importance, and this study confirms it in hard numbers: Entergy's headquarters being in the city creates jobs, it generates sales for local businesses, and it creates major tax revenue for the parish and the state."

"We are truly fortunate to have Entergy as a partner in driving the region's economy," said Michael Hecht, president and CEO of Greater New Orleans, Inc. "Entergy not only provides reliable and affordable energy, but also supports thousands of jobs, hundreds of millions of dollars in sales and income, and millions of dollars in local charitable contributions. Having Entergy's corporate headquarters in New Orleans helps attract major companies into the region, and demonstrates success for existing businesses. Entergy is a true corporate leader who exemplifies the spirit of innovation, resilience, and generosity that makes Greater New Orleans uniquely great."

Jobs supported by Entergy in New Orleans carried an average wage of $93,000. That is nearly 36% higher than the average annual wage of $68,000 in Orleans Parish.

As one of New Orleans' largest taxpayers, Entergy pays more than $17 million in local taxes and has supported nearly $300 million in household income for New Orleans residents. This is almost as much as the total earnings of all workers in Orleans Parish's oil and gas extraction sector (approximately $280 million in 2020).

Each dollar spent by Entergy ripples through the state's economy, triggering employment, new income and spending in virtually every industry sector. In 2021, Entergy also had contributed nearly $4.1 million to more than 100 New Orleans non-profit partners and community organizations and over $9 million to other non-profits outside of New Orleans.

Entergy New Orleans recently announced plans to invest $1 billion in grid hardening projects for the city over the next 10 years.

Last fall, Entergy was recognized for the 16th consecutive year as a top utility driving economic development in the region.

At Entergy's request, Loren C. Scott and Associates Inc. measured Entergy's economic footprint in New Orleans and the state of Louisiana. Financial and operations data for the 2021 fiscal year formed the primary-source information for the analysis.

For highlights of Entergy's economic impact in New Orleans, download this infographic. Read the complete Loren C. Scott and Associates impact study here.

About Entergy

Entergy New Orleans, LLC provides electricity to approximately 211,000 customers and natural gas to approximately 109,000 customers in Orleans Parish, Louisiana. Entergy New Orleans is a subsidiary of Entergy Corporation (NYSE: ETR), a Fortune 500 electric company. Entergy powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi and Texas. We're investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. For the latest news from Entergy, visit the Newsroom.

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SOURCE Entergy Corporation

FAQ

How much economic benefits does Entergy contribute to the greater New Orleans region?

Entergy contributes nearly half of $1 billion in economic benefits to the greater New Orleans region.

What is the ticker symbol for Entergy?

The ticker symbol for Entergy is ETR.

What is the average wage of jobs supported by Entergy in New Orleans?

The average wage of jobs supported by Entergy in New Orleans is $93,000, nearly 36% higher than the average annual wage of $68,000 in Orleans Parish.

What is the amount Entergy pays in local taxes?

Entergy pays more than $17 million in local taxes.

What are Entergy's plans for investment in grid hardening projects for the city?

Entergy New Orleans recently announced plans to invest $1 billion in grid hardening projects for the city over the next 10 years.