Entergy provides an update on Hurricane Ida
NEW ORLEANS, September 21, 2021 / PRNewswire / – Following the passage of Hurricane Ida near Port Fourchon, Louisiana to August 29, Entergy Corporation (NYSE: ETR) announced today that its utilities have restored power to approximately 932,000 customers, or 98% of the customers affected by the storm. Entergy is still making significant progress in the hardest hit areas of the southeast Louisiana. The crews restored power to all affected Entergy customers in Mississippi.
In response to the extensive damage from the storm, Entergy deployed a workforce of approximately 27,000 workers from 41 states.
“We are grateful to the thousands of men and women who have worked tirelessly to restore power safely to our customers,” said West Stem, president of the Entergy utility group. “Hurricane Ida inflicted extensive damage on Entergy’s electrical system which resulted in 948,000 outages at its peak. Our work is not yet finished and despite the extent of the damage, the teams have made significant progress. We anticipate that any remaining customers who can safely take power should be restored by September 29. “
The historic intensity of Hurricane Ida caused enormous damage to Entergy’s distribution and transmission systems in the southeast Louisiana. Storm damage to Entergy’s system included:
- more than 30,500 distribution poles,
- nearly 6,000 transformers,
- nearly 36,500 spans of distribution wires,
- around 500 damaged or destroyed transmission structures,
- more than 225 substations, and
- more than 210 transmission lines.
Over the past five years, Entergy’s operating companies have invested $ 9.5 billion in transmission and distribution assets that met or exceeded the resilience standards then in effect. Ida has demonstrated the resilience benefits of these investments. Along a transmission route from Port Fourchon, where Ida made landfall, only three of the 387 newer and more resistant structures were destroyed. In contrast, a seven-mile transmission line with pre-1997 design structures along that same path was destroyed by Ida, with more than half of the line’s structures destroyed.
Hurricane Ida presented a severe wind load event that caused significant damage to the distribution system. With strong Category 4 winds on landing and sustained hurricane force winds across New Orleans and beyond, Ida has caused much more damage to utility poles than previous storms. On key lines in coastal areas, poles are replaced with stronger Class 1 distribution poles that can be configured to withstand winds of over 130 miles per hour, exceeding current requirements. To cope with the intensity of future weather events, Entergy recognizes the need for accelerated system hardening, as well as continuing to advance its preventive maintenance programs, including vegetation management and pole inspections.
As part of the recovery efforts, Entergy has strived to provide support to its communities as they recover from Ida. The company deployed 165 commercial-scale generators to power critical community infrastructure such as medical facilities, gas stations, grocery stores, municipal water systems and community cooling centers before their release. electricity is restored. In addition, Entergy shareholders have committed $ 1.25 million in financial support to help affected communities rebuild and recover from the storm.
For more information on Entergy’s recovery efforts after Hurricane Ida, visit entergy.com/hurricaneida.
The total restoration costs for the repair and / or replacement of electrical installations damaged by Hurricane Ida are estimated at approximately $ 2.1 billion To $ 2.6 billion. Most of the costs associated with the storm were incurred by Entergy Louisiana and Entergy New Orleans. The preliminary estimate for Entergy Louisiana is $ 2.0 billion To $ 2.4 billion, and the preliminary estimate for Entergy New Orleans is $ 120 million To $ 150 million.
Entergy also expects utility revenues in 2021 to be negatively affected, primarily due to power outages resulting from the hurricane. The company’s initial estimate of the loss of non-fuel revenue is approximately $ 75 million To $ 85 million, with most of this impact occurring in the Entergy Louisiana and Entergy New Orleans service areas, $ 65 million To $ 70 million and 10 million dollars To $ 15 million, respectively. The financial impact of lost revenue is expected to be partially offset by lower operating and maintenance expenses.
The company confirms its 2021 adjusted earnings per share range of $ 5.80 To $ 6.10 and its 2022 and 2023 adjusted earnings per share outlook of $ 6.15 To $ 6.45 and $ 6.55 To $ 6.85, respectively.
Entergy believes that it has sufficient liquidity to meet its current obligations. From August 31, 2021, Entergy’s liquidity of $ 4.2 billion consists of cash and cash equivalents ($ 1.0 billion), revolver capacity available ($ 4.1 billion), and storm receivers ($ 72 million), less outstanding commercial paper ($ 1.0 billion). The company plans to seek accelerated recovery of its hurricane-related hurricane-related expenses using securitization finance. Assuming Entergy receives the proceeds from these securitization financings in 2022, the company expects to achieve key credit metrics from S&P Global Ratings and Moody’s Investors Services by the end of 2022 sufficient to maintain ratings of current credit.
The company has a long history of working with its regulators to recover costs associated with storms. Entergy Louisiana and Entergy New Orleans are considering all available means to recover costs associated with the storm Hurricane Ida in a manner that will minimize the effects on clients, including federal government assistance and securitization funding . There are well-established mechanisms for recovering prudently incurred storm costs, in accordance with applicable regulatory and legal principles. In addition, Entergy coordinated with Governor Edwards and the Louisiana congressional delegation to seek disaster recovery funds and other funding options from the federal government. President Biden, who has been a strong advocate for supporting the Gulf region’s recovery, recently sent a $ 24 billion asks Congress for additional disaster funding, which includes 10 billion dollars for Ida’s nationwide impacts. If approved, a portion of these funds could be allocated to Entergy to, in turn, reduce the burden on the customer dollar for dollar.
In this press release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding the earnings of Entergy in 2021. advice; its current financial and operational outlook; expectations regarding the restoration schedule, costs and recovery; and other statements of Entergy’s plans, beliefs or expectations included in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by federal securities laws, Entergy assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) factors discussed in this news release and in the recent Annual Report on Form 10-K, all subsequent quarterly reports on Form 10-Q and other Entergy reports and filings made under the Securities Exchange Act of 1934; b) uncertainties associated with rate authorities, rate formulas and other cost recovery mechanisms, including the risk that costs will not be recoverable to the extent or within the timeframe provided by utilities; (c) uncertainties associated with efforts to remedy the effects of major storms and recover associated restoration costs; (d) legislative and regulatory actions and the risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (e) the effects of changes in federal, state or local laws and regulations and other government actions or policies, including changes in monetary, fiscal, fiscal, environmental or energy policies; (f) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (g) the effect of technological change, including the cost, rate of development and commercialization of new and emerging technologies.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged in retail electricity generation, transmission and distribution operations. Entergy supplies electricity to 3 million utility customers by Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale power generation farms in the United States with approximately 30,000 megawatts of power generation capacity, including 7,000 megawatts of nuclear power. Based at New Orleans, Louisiana, Entergy has an annual turnover of 10 billion dollars and approximately 12,500 employees. Learn more at entergy.com and follow @Entergy on social media.
SOURCE Entergy Corporation