Entergy considers bankruptcy of Louisiana companies...

http://www.entergy.com/corp/
Entergy, (ENT NYSE)is the second-largest generator of nuclear power in the U.S. it delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Very comprehensive Storm Centre reports here.

They claim the costs of repairs in Louisiana could be be between 0.75 to 1.1 US£Bn. Of which $325 million to $475 million will be costs for for Entergy New Orleans Inc. alone.

Entergy Louisiana Inc., another subsidiary, faces similar expenses for hurricane damage and restoration work, with estimates pegged at $275 million to $400 million. Entergy Gulf States Inc. and Entergy Mississippi Inc. subsidiaries carried lower costs but will still add to total costs of Katrine to the parent company.

By Monday night 19th September , Entergy have done a heroic job in restoring service to roughly 874,000 of the 1.1 million customers who lost power at the peak of the storm but approximately 160,000 homes and businesses were unable to accept new supplies resulting in lost customers and revenue. They anticpate that all possible customers requiring supplies will be up and running in 2 weeks.

Losses in these regions will be offset by increased sales growth arising from
evacuated residents and businesses being relocated to other parts of Entergy's service territory as well as from an influx of restoration and government crews.
Entergy expects to restore power to all homes and businesses in the non-flooded areas of New Orleans and surrounding parishes that are able to receive service within the next two weeks.

As a result of these costs and reduced liquidity Entergy are considering filing for bankruptcy of their subsidiaries in the area, and shifting some of the subsidiary's purchased power contracts to other Entergy subsidiaries to reduce cash requirements, issuing debt, increasing its short-term borrowing, and infusing equity into the New Orleans unit.

Entergy is naturally looking to the Federal government to propose legislation to help hurricane-hit utilities recoup some of their costs. This could involve amendments to the Robert T. Stafford Disaster Relief and Emergency Assistance Act, enacted by Congress following the Sept. 11, 2001, terrorist attacks, to provide block grants.

Entergy, if Congress introduced such changes, could then ask Federal Emergency Management Agency, the Department of Housing and Urban Development and states Government to obtain and funnel Federal aid to them (and no doubt other privately owned utilities) in the devastated areas.