Entergy Corporation : Entergy Sees Isaac Restoration Cost at $400 Million to $500 Million
09/18/2012| 08:21am US/Eastern
By Ben Fox Rubin
Entergy Corp. (ETR) said total restoration costs following Hurricane Isaac are estimated at $400 million to $500 million, though the power company said it is considering several ways to recover storm-related costs.
Temporary outages associated with Hurricane Isaac, which late last month left more than 787,000 of its customers in three Southern states without electricity, should reduce reported revenues for the current quarter in heavily affected service areas, the company said. However, Entergy added, the company believes total liquidity available is sufficient to meet current needs.
The company said Isaac became the fourth most significant storm in the company's history in terms of outages, with Hurricane Katrina affecting 1.1 million customers, Hurricane Gustav affecting 964,000 and Hurricane Rita affecting 800,000.
Storm-cost recoveries may include accessing funded storm reserves, securitization or other alternative financing, traditional retail recovery and insurance.
As of Monday afternoon, 94 of the 95 affected transmission lines and 142 of the 144 affected substations had been restored, Entergy said.
Entergy owns utilities in Arkansas, Louisiana, Mississippi and Texas, and also sells power on the wholesale market, where prices have fallen to historic lows, driven by low natural-gas prices.
In July, the company said second-quarter earnings rose, thanks largely to a tax benefit.
Shares, which were inactive premarket, closed Monday at $68.33. The stock is down 6.5% so far this year.
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