Louisiana special session to consider ending tax on power, gas

Birmingham, Alabama (Platts)--3Nov2005

At the request of the Louisiana Public Service Commission, Gov Kathleen
Blanco has agreed to ask the state legislature to consider removing the sales
tax on electricity and natural gas. 

     The proposal will be taken up in a special session that starts Sunday and
ends Nov 22. "This special session will move us toward bringing our families
and our businesses home and bringing Louisiana back," Blanco said. 

     Legislators also will consider eliminating the sales tax on equipment
that will replace equipment damaged by the storm and eliminating the corporate
franchise tax on new debt incurred by businesses in the storm zone. Blanco
also will ask the legislature to forgo the windfall profit tax so businesses
can reap the full benefit of federal assistance. 

     Not everyone thinks the legislature will eliminate the sales tax on
electricity and gas because it will cost the state $300-bil. "It will be a
tough sell," Michael Madison, president and chief executive of Cleco Corp said
in a Thursday conference call with analysts. 

     LPSC commissioner Foster Campbell said he thinks it will happen
eventually, but not until the state finds a way to replace the money that will
be lost from the tax.

     For more information, take a trial to Platts LNG Daily at
http://www.LNGdaily.platts.com.

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