Entergy Corp. says its estimated damages from Hurricane Isaac range from $400 million to $500 million, and the storm is expected to reduce the utility's third-quarter revenue.
In a news release, Entergy said it will pursue all reasonable avenues to recover storm costs, including using its storm reserves, borrowing, additional charges for customers, and insurance.
Entergy said it is unable to predict the degree of success it may have in these initiatives, the amount of restoration costs it may recover or when it may recover them.
Spokesman Michael Burns said it is too early to discuss the impact on individual or average customers.
The estimated losses by Entergy company are Entergy Gulf States Louisiana, which serves the Baton Rouge area, $70 million to $90 million; Entergy Louisiana, $240 million to $300 million; Entergy New Orleans, $50 million to $60 million; Entergy Mississippi, $30 million to $40 million; and Entergy Arkansas, $10 million.
Entergy Gulf States has $87 million in funded storm reserves, Entergy Louisiana, $187 million, Entergy New Orleans, $16 million, Entergy Mississippi, $32 million.
Isaac left more than 787,000 Entergy customers without power. 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.
The only storms with larger outages were Hurricane Katrina with 1.1 million affected customers, Hurricane Gustav with 964,000 affected customers and Hurricane Rita with 800,000 affected customers.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
admin 20 Sep, 2012
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Source: http://www.insurancejournal.com/news/southcentral/2012/09/19/263548.htm
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