) along with SMG, the management company of the Mercedes-Benz
Superdome, is investigating the partial power loss during the
Super Bowl in New Orleans.
CENTERPOINT EGY (CNP): Free Stock Analysis
ENTERGY CORP (ETR): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
ITC HOLDINGS CP (ITC): Free Stock Analysis
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Earlier on Sunday shortly after the beginning of the second half
of the Super Bowl in the Mercedes Benz Superdome, a piece of
equipment that is designed to monitor electrical load sensed an
abnormality in the system. Once the issue was detected, the
sensing equipment operated as designed and opened a breaker,
causing power to be partially cut to the Superdome in order to
isolate the issue. Backup generators kicked in immediately as
designed. Entergy and SMG subsequently coordinated start up
procedures, ensuring that full power was safely restored to the
Superdome. The fault-sensing equipment activated where the
Superdome equipment intersects with Entergy's feed into the
facility. There were no additional issues detected.
New Orleans, Louisiana based Entergy is primarily engaged in
electric power production and retail distribution of power. With
30,000MW of generating capacity, the company distributes
electricity to 2.8 million customers in Arkansas, Louisiana,
Mississippi, and Texas. Of this, 14,631MW are gas/oil based,
2,259 are coal based, 70MW are hydro based and the rest are
nuclear based. The company also distributes natural gas to
240,000 customers in Louisiana. Entergy is the second largest
U.S. nuclear power generator after
Entergy affirmed its 2013 operational earnings guidance in the
range of $4.60 to $5.40 per share. Entergy noted it currently
expects earnings to be on the lower half of the operational
guidance range due to updated pension and post-retirement cost
estimates, which include an approximate 75 basis point decrease
in the discount rate assumption.
Entergy had earlier, in December 2011, entered into a definitive
ITC Holdings Corporation
), under which the former will divest its electric transmission
business to the latter for gross cash of $1.775 billion. The
divested business would be merged with the operations of ITC
Holdings. Recently, Entergy Arkansas Inc. along with ITC Holdings
Corp. and ITC Midsouth LLC, filed a request at the Arkansas
Public Service Commission to spin off the Arkansas electric
transmission business and merge it into a subsidiary of ITC. The
company expects the transaction to complete by 2013.
Entergy is expected to release its fourth-quarter 2012 earnings
on Feb 8, 2013. The Zacks Consensus Estimates for fourth-quarter
2012 and fiscal 2012 are currently pegged at $1.34 per share and
$5.78 per share, respectively.
Entergy is well positioned with its geographically diverse mix of
regulated and merchant operations. The company is focused on
maximizing its shareholder value through steady investment for
rate base growth, as well as through its ongoing stock buyback
program and incremental dividend.
However, we are concerned regarding the tepid growth of its
competitive business due to lukewarm power demand in the
Northeast, pending regulatory approvals and the fate of its
Indian Point plant.
Entergy faces competition from
CenterPoint Energy Inc.
). The latter is also focusing hard on the development of its
pipeline assets. Entergy has a short-term Zacks Rank #3 (Hold
rating) in view of the continued weak economic environment in the
U.S. which will weigh on the company's power sales.