EX-99 2 a18205e99.txt Exhibit 99 Entergy 639 Loyola Avenue New Orleans, La 70113 Date: September 20, 2005 NEWS RELEASE For Release: Immediately Contact: Yolanda Pollard (News Media) Michele Lopiccolo (Investor Relations) 800-844-8084 pin 1440471 (501) 607-3557 ypollar@entergy.com mlopicc@entergy.com Entergy Provides Storm Restoration Update New Orleans, La. - Entergy Corporation (NYSE: ETR) announced today its preliminary estimates of storm restoration costs associated with Hurricane Katrina as well as initial details on the number of customers that are not able to receive electric service. In addition, the company provided an update on its liquidity position, noting that it will pursue a range of options to recover storm-related costs and other potential incremental losses. Preliminary Restoration Cost Estimates Limited access to heavily flooded areas continues to hamper Entergy's ability to fully assess the extent of damage to certain portions of its infrastructure. As a result, Entergy noted that the initial restoration estimates are subject to change. Total restoration costs for the repair and/or replacement of Entergy's electric and gas facilities damaged by Hurricane Katrina and business continuity costs are estimated to be in the range of $750 million to $1.1 billion. Restoration and business continuity cost estimates for the various utility jurisdictions affected by the storm are as follows: Company Estimated Costs (U.S. $ in millions) Entergy Gulf States - LA 25-45 Entergy Louisiana 275-400 Entergy Mississippi 75-100 Entergy New Orleans 325-475 Other 50-80 Total 750-1,100 The above cost estimates do not include other potential incremental losses that cannot be estimated at this time. Restoration Progress and Timing As of 9:00 p.m. CDT yesterday, Entergy had restored power to approximately 874,000 of the 1.1 million customers who lost power at the peak of the storm. Entergy expects to restore power to all those customers who can take service in the non-flooded areas of New Orleans and surrounding parishes within 2 weeks. Some customers in the most devastated areas of greater New Orleans and surrounding parishes, estimated to be in the range of 150,000 to 170,000, are unable to accept electric and gas service, and therefore cannot be restored at the current time. Restoration for many of these customers will follow major repairs or reconstruction of customer facilities, and will be contingent on validation by local authorities of habitability and electrical safety of customers' structures. In areas where demolition is required before reconstruction can occur, Entergy will coordinate with parish officials to make every effort to have electric and gas facilities ready to serve customers as their communities are rebuilt. Estimated Revenue Impact Revenues are expected to be lower at both Entergy Louisiana, Inc. (ELI) and Entergy New Orleans, Inc. (ENOI) as a result of the 150,000 to 170,000 customers that are unable to accept electric and gas service for a period of time that cannot yet be estimated. Included in this customer estimate are 115,000 to 130,000 customers located in ENOI's service territory, with the remainder in ELI's service territory. The majority of these customers are residential, and the balance is primarily commercial. Average annual non-fuel revenues associated with these customers are estimated to range from $50 million to $60 million for ELI and $160 million to $190 million for ENOI. However, Entergy noted that it cannot estimate the actual revenue impact of customers who are currently unable to accept electric and gas service. This is due to a range of uncertainties, in particular the timing of when individual customers will return to service. The company noted that the lower revenues from the most severely impacted areas could be partially offset by potential sales growth in other Entergy service areas. This growth could come from evacuees moving into neighboring cities in Entergy's service territory such as Baton Rouge, LA and Jackson, MS or from temporary facilities constructed by federal and local agencies. Recovery Initiatives Entergy plans to pursue a broad range of initiatives to recover storm restoration costs and incremental losses. Initiatives include obtaining reimbursement of certain costs covered by insurance, obtaining assistance through federal legislation targeting Hurricane Katrina relief, and pursuing recovery through existing or new rate mechanisms regulated by the Federal Energy Regulatory Commission and local regulatory bodies. Federal legislation expected to be introduced shortly will consider a wide array of potential relief mechanisms for electric and gas utilities impacted by Hurricane Katrina. For example, Entergy understands that Congress will consider amendments to the Robert T. Stafford Disaster Relief and Emergency Assistance Act, provide additional appropriations for restoration and repair costs through Community Development Block Grants, and other potential alternatives that the Congress enacted following the September 11, 2001 tragedy. Entergy appreciates the Congress considering on an expedited basis legislation, that if approved, would permit the Federal Emergency Management Agency, U.S. Department of Housing and Urban Development, and states to obtain federal aid to provide direct assistance to privately owned utilities in the storm-stricken areas. Entergy noted that it is unable to predict the degree of success it may have in these initiatives, the amount of restoration costs and incremental losses it may recover or the timing of such recovery. Liquidity Impact Entergy Corporation continues to believe it has sufficient liquidity to meet its current obligations and to fund its restoration efforts. However, the impact of lower revenues and storm restoration costs, concentrated at ENOI, are expected to create liquidity constraints at that company. Various alternatives are being considered by Entergy for maintaining acceptable liquidity at ENOI. These alternatives include open account advances to ENOI and assigning ENOI contracts for purchased power to other Entergy companies to reduce cash requirements at ENOI and provide attractively priced power to other Entergy system customers. In addition, Entergy is evaluating the options of additional debt issuances, the expansion of short-term borrowing capacity and/or infusing equity into ENOI. Further, ENOI will consider seeking a petition for protection under federal bankruptcy law. Entergy believes this option should be considered to determine whether or not it is the most appropriate course of action to protect any future investment in ENOI and to preserve legal rights while achieving business continuity at ENOI. Some of these options being considered may affect Entergy's debt arrangements and the financing and power purchase agreements relating to System Energy Resources, Inc. Entergy cannot currently predict which options it may pursue to maintain acceptable liquidity at ENOI given the uncertainties associated with restoration cost estimates, amounts of cost recovery and the timing of such recovery through various initiatives noted above. Additional statistics on Entergy subsidiaries impacted by the storm and details on restoration progress achieved to date are included in appendix A to this release. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of over $10 billion and approximately 14,000 employees. Appendix A provides Hurricane Katrina Outage Restoration Statistics. Table 1: Outage Restoration Status - Retail Customer Outages Current Status vs Storm Peak
Electric Gas Number of Retail Total as of Extended Total as of Total as of Extended Total as of Customer Outages 9/19/2005 Restoration Storm Peak 9/19/2005 Restoration Storm Peak (in thousands) Entergy Gulf States - LA - - 107 - - - Entergy Louisiana 45 35 - 40 507 NA NA NA Entergy Mississippi - - 302 NA NA NA Entergy New Orleans 173 115 - 130 172 95 95 96 Total Customer Outages 218 150 - 170 1,088 95 95 96
Table 2: Outage Restoration Status - Transmission Line & Substation Outages Current Status vs Storm Peak
Total as of Total as of Total as of Total as of Transmission Lines 9/19/2005 Storm Peak Substations 9/19/2005 Storm Peak (count: #) (count; #) Entergy Gulf States - LA 1 32 Entergy Gulf States - LA - 36 Entergy Louisiana - 90 Entergy Louisiana 11 86 Entergy Mississippi 16 41 Entergy Mississippi - 117 Entergy New Orleans 12 19 Entergy New Orleans 12 24 Total Transmission Line Outages 29 182 Total Substation Outages 23 263
Table 3: Outage Restoration Status - Fossil Fleet Impacted by Hurricane Katrina Current Status vs Storm Peak Owned As of Capability Fuel As of Storm Plant Unit (a) Type Purpose 9/19/2005 Peak Entergy Louisiana Buras 8 12 Gas/Oil Peaking Extensive Flooding (EF) Outage Little Gypsy 1 238 Gas/Oil Intermediate Returned to Svc (RTS) Outage Little Gypsy 2 415 Gas/Oil Intermediate RTS Outage Little Gypsy 3 545 Gas/Oil Intermediate RTS Outage Ninemile Point 1 50 Gas/Oil Peaking RTS Outage Ninemile Point 2 60 Gas/Oil Peaking RTS Outage Ninemile Point 3 125 Gas/Oil Intermediate RTS Outage Ninemile Point 4 730 Gas/Oil Intermediate RTS Outage Ninemile Point 5 740 Gas/Oil Intermediate RTS Outage Waterford 1 411 Gas/Oil Intermediate RTS Outage Waterford 2 411 Gas/Oil Intermediate RTS Outage Entergy New Orleans A. B. Paterson 3 50 Gas/Oil Peaking EF Outage A. B. Paterson 4 - Gas/Oil Peaking EF Outage A. B. Paterson 5 11 Oil Peaking EF Outage Michoud 1 65 Gas/Oil Peaking EF Outage Michoud 2 244 Gas/Oil Intermediate EF Outage Michoud 3 545 Gas/Oil Intermediate EF Outage (a) Owned Capability is the dependable load carrying capability as demonstrated under actual operating conditions based on the primary fuel (assuming no curtailments) that each unit was designed to utilize. -30- Entergy's online address is www.entergy.com In this release and from time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Except to the extent required by federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in these statements. Some of those factors include, but are not limited to: resolution of pending and future rate cases and other proceedings at local and federal regulatory agencies, Entergy's ability to manage its operation and maintenance costs, particularly at its non-utility nuclear generating facilities, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, and the prices and availability of power Entergy must purchase for its utility customers, uncertainty regarding establishment of sites for spent nuclear fuel storage and disposal, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, changes in utility regulation and in regulation of the nuclear industry, the success of Entergy's strategies to reduce tax payments, the effects of litigation and weather, and uncertainties associated with efforts to remediate the effects of Hurricane Katrina and recovery of costs associated with restoration including Entergy's ability to obtain financial assistance from governmental authorities in connection with this storm.