Entergy continues to work on Louisiana and Mississippi power network

7 September 2005

Electrical service has been restored to more than 632,000 of the 1.1 million customers affected by hurricane Katrina across Entergy’s service area, chiefly in Louisiana and Mississippi.

Limited service has been restored to the Central Business District and downtown New Orleans but close to half a million consumers are still left without power and the company has warned that the severe damage caused by Katrina will require months to rebuild.

To date, the transmission system has 54 lines and 46 substations out of service although overall, restoration of the transmission system is progressing well except in areas still impacted by flood waters or those with what are termed 'security issues'.

The company is establishing an interim headquarters at Clinton, Mississippi, but is already anticipating that Katrina will influence its financial results with revenues expected to be lower due to extended outages, customer losses, and inability to bill and collect revenues for electricity previously delivered to customers whose property has been destroyed. Capital and other expenditures are also expected to be higher due to the restoration, repair and replacement of damaged equipment and assets.

Meanwhile, Entergy is preparing to restart its 1075MWe Waterford 3 nuclear station in Louisiana and will be ready to begin generating power from the unit once demand reaches required levels. Waterford 3 was shut before Katrina's landfall as a precautionary measure.

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