Entergy Reports $1.5 Billion in Hurricane Damage

Utility holding company Entergy Corp. reported that its damages from hurricanes Katrina and Rita totaled $1.5 billion and predicted its fourth-quarter earnings will drop from a year ago.

Entergy said it expected earnings of 42 cents per share for the October-December period, down from 68 cents a share in the year-ago quarter. Entergy said much of the decrease would be due to hurricane-related customer outages.

Entergy said its Entergy Louisiana service area took the biggest hit with $510 million in damage, followed by Entergy Gulf States Texas with $380 million. Its Entergy New Orleans unit, which is in bankruptcy, sustained $275 million in damage, Entergy Gulf States Louisiana had $195 million, and Entergy Mississippi $120 million.

Entergy said it expected operational earnings for last year’s fourth quarter to total about 54 cents a share. The company said it would take a 12-cents-per-share charge in connection with its decision to pursue the sale of its competitive retail power business.

Entergy said the damage estimates were likely not final since the company was pursuing insurance payments, rate increases and federal assistance to recover the cost of storm damage.

The company said it would offer an earnings outlook for 2006 when it formally reports its fourth-quarter results Jan. 31.