Electrical service is available to all of New Orleans Metro area, said Rod West, director of distribution operators for ENOI.
ENOI understands and accepts its "obligation to serve" its customers in the New Orleans area, and the concomitant investments that have been and must be made toward that end, West continued.
The greater the level of ENOI, the greater the borrowing capacity.
The lower the risk in ENOI, the greater the borrowing capacity.
Fitch expects to upgrade ENOI's ratings if ETR's spin-off of its non-regulated nuclear assets yields a credit neutral to positive outcome, and if there is a neutral to positive outcome of the base rate case ENOI will file in July 2008 for rates to begin in March 2009.
ENOI is a regulated utility that provides electric and gas service to customers located in and around the City of New Orleans.
Offsetting these concerns are ample cash on hand from insurance proceeds and Community Development Block Grants, higher authorized electric rates, the demonstrated commitment to rebuilding ENOI by its parent, Entergy Corp.
While ENOI is building a $75 million storm reserve, it will take 10 years to fully fund.
The cost for ENOI
exceeded $700 million, which put it in bankruptcy until May 2007, four months after West was named CEO.
, bankruptcy is a possibility as its capacity for meeting financial commitments is severely constrained without substantial support from Entergy Corp.
, a wholly owned subsidiary of the Entergy Corporation, is a vertically integrated electric and gas utility serving the city of New Orleans, except for Algiers.
The SERI ratings are based on the contractual obligations of its affiliates EAI, ELI, EMI and ENOI
, to pay the operating and capital costs associated with SERI's sole asset, its 90% ownership and leasehold in the Grand Gulf Unit 1 nuclear facility.