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.
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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.