Entergy powers back up
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MARK AUSTIN THOMAS: It’s a reversal of fortune. Today the parent of a New Orleans power company is expected to report a 10 percent hike in quarterly earnings. Although Entergy Corporation took a hit from Katrina, the company has rebounded. Here’s Dan Grech:
DAN GRECH: Entergy’s New Orleans unit suffered $620 million in damage during Hurricane Katrina.
The unit declared bankruptcy, and the stock of its parent company plunged 15 percent. But earnings held steady, largely due to the strength of Entergy’s nuclear power business.
Investors see the company’s 11 nuclear power reactors as a better bet than coal-fired plants.
Entergy’s stock recently hit a 52-week high.
Energy analyst Julia Frayer says the nuclear operations have provided a crutch for the company.
JULIA FRAYER:“Definitely gets them to a point of stability where they can provide the support to the Entergy New Orleans unit.”
Last week Entergy submitted a plan for bringing that unit back from bankruptcy by the end of 2007.
It includes $200 million in federal relief, $250 million in insurance proceeds and a 50 percent rate hike in the city.
I’m Dan Grech for Marketplace.
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