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.
Electrical service is available to all of New Orleans Metro area, said Rod West, director of distribution operators for ENOI.
These projections assume ENOI pays down the $30 million of first mortgage bonds due later this year.
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.
Absent a waiver, a bankruptcy filing by ENOI would place Entergy in default of its recently established $2 billion, five-year credit facility, as well as its NYPA agreement currently secured by a letter of credit.
provided information about the estimated costs of storm recovery for all the operating subsidiaries affected by Hurricane Katrina and disclosed that bankruptcy is an option for ENOI given the utility subsidiary's poor liquidity position relative to continued operating costs, including power and gas purchase agreements and the high estimated costs of restoration without certainty of cost recovery.
Cost also summarizes the comments ENOI
receives when it asks cost-sensitive customers for their top priority.
is an electric and gas utility that serves customers in and around the city of New Orleans.
, 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.
Entergy also noted that events related to Hurricanes Katrina and Rita and the bankruptcy proceeding for ENOI
noted above, that occur prior to the filing of the third quarter financial statements under Form 10-Q, could result in a subsequent event(s) in accordance with generally accepted accounting principles.
Average annual non-fuel revenues associated with these customers are estimated to range from $50 million to $60 million for ELI and $160 million to $190 million for ENOI
SERI -- The SERI ratings are based on the obligation 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.