Entergy Sees $500 million to $600 million in Damage from Gustav

Utility company Entergy Corporation said it expects to spend $500 million and $600 million to repair damage from Hurricane Gustav, while the cost of damage from Hurricane Ike is not yet known.

New Orleans-based Entergy also expects lower third-quarter utility revenue because of power outages.

Entergy said Friday the two storms left about 1.7 million customers without power across Mississippi, Alabama, Louisiana and Texas.

The company said 231 of 241 power lines and 348 of 354 substations affected by Gustav had been restored.

Hurricane Ike affected 238 transmission lines, as well as 383 substations. Ike caused the most outages ever for Entergy’s Texas business.

Entergy said it believes it has liquidity sufficient to meet its current obligations, but noted it is still responsible for paying restoration and recovery costs.