NEW ORLEANS — Entergy Corporation has released an update on preliminary financial effects, liquidity resources and recovery initiatives after Hurricane Isaac.
Total restoration costs for the repair and/or replacement of the electrical facilities in areas with damage from Isaac are estimated to be in the range of $400 million-$500 million. Each utility company is responsible for its restoration cost obligations and for recovering its storm-related costs. While Entergy also expects temporary power outages associated with Isaac to reduce reported revenues for the current quarter in the heavily affected service territories, Entergy said it believes total liquidity available to the utility companies is sufficient to meet their current obligations.
All reasonable avenues for storm cost recovery are under consideration, the utility said, including but not limited to accessing funded storm reserves, securitization or other alternative financing, traditional retail recovery on an interim and permanent basis and insurance, to the extent coverage is available and deductibles are met.
Isaac left more than 787,000 customers without power (non-coincident peak), making it the fourth-most significant storm in Entergy’s history in terms of outages. The only storms with larger outages have been Hurricane Katrina with 1.1 million affected customers, Hurricane Gustav with 964,000 affected customers and Hurricane Rita with 800,000 affected customers.
Once conditions after Isaac were safe to commence restoration, crews safely restored power to more than 85 percent of customers within five days (in fact, 92 percent). By comparison, it took seven days to reach the 85 percent restoration level for Hurricane Ike in 2008, eight days for Gustav in 2008, 13 days after Rita in 2005, and 16 days following Katrina in 2005, excluding extended restoration customers (Katrina, in particular, left over 122,000 customers incapable of taking electricity service).
Entergy’s utilities experienced extensive damage to their distribution systems as a result of Isaac. Based on preliminary estimates, counted as damaged or destroyed are 4,500 poles and 2,000 transformers. Isaac also knocked 95 transmission lines out of service along with 144 substations. No material damage at the utilities’ fossil or nuclear power plants has yet been identified, but detailed assessments are underway.
As of 1:00 p.m. yesterday, 94 of the 95 affected transmission lines and 142 of the 144 affected substations had been restored.
Total restoration costs for the repair and/or replacement of the electrical facilities in areas with damage from Isaac are estimated to be in the range of $400 million to $500 million. Estimated amounts for Entergy’s utility companies that were significantly affected by Isaac are:
|Preliminary Hurricane Isaac Restoration Costs by Company|
|(U.S. $ in millions)|
|Entergy Gulf States Louisiana||70 – 90|
|Entergy Louisiana||240 – 300|
|Entergy Mississippi||30 – 40|
|Entergy New Orleans||50 – 60|
|Total||400 – 500|
Entergy also expects temporary power outages associated with Isaac to reduce reported revenues for the current quarter in the heavily affected service territories.