Entergy Struggles with Hurricanes, COVID-19 as it Plots Major NGCC, Transmission Buildouts

Researched by Industrial Info Resources (Sugar Land, Texas)--In a constantly changing U.S. energy market, Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) finds itself at the center of the storm--literally. Utilities across Louisiana are still reeling from hurricanes Laura, Sally and Delta in August, September and October, respectively, and now are enduring Hurricane Zeta. Entergy, which serves many areas along the U.S. Gulf Coast, saw its bottom line take a hit from the hurricanes and COVID-19, but remains optimistic about its long-term outlook. Industrial Info is tracking $9 billion in active projects from Entergy, including nearly $2 billion worth that are nearing or under construction.

Click on the image at right for a graph detailing Entergy's active projects by U.S. state, excluding a pair of $4.2 billion nuclear decommissioning projects planned in New York.

Entergy's largest project under construction is a $937 million natural gas-fired, combined-cycle (NGCC) unit addition at its power plant in Montgomery County, Texas, about 45 miles north of Houston. The 993-megawatt (MW) unit will feature a pair of combustion turbines and a steam turbine, all from Mitsubishi, and is set to finish construction at the end of first-quarter 2021. Entergy says the project is crucial for the region, explaining it would face a 1.2-gigawatt (GW) shortfall in 2022 if no new infrastructure were delivered. For more information, see Industrial Info's project report.

The long--and still growing--list of hurricanes that have battered the U.S. Gulf Coast over the past few months has left many residents without power for long stretches of time, which has emphasized the need for strong, reliable transmission in the area. Entergy is seeking permits for a proposed, estimated $94 million power line from Killona to Westwego, Louisiana, running about 30 miles. The line would connecting the existing Waterford Substation in Killona to the proposed, $18.5 million Churchill Substation in Westwego; both projects currently are slated to begin construction next summer and wrap up about one year later. For more information, see Industrial Info's reports on the power line and substation projects.

Entergy also is seeking permits several transmission lines in southern Louisiana, which has seen some of the worst recent hurricane-related devastation. An estimated $48 million power line from Cecilia to Delcambre, running about 26 miles, would connect the existing Cecilia Substation to the proposed, $17.5 million Lake Peigneur Substation in Delcambre; both projects currently are slated to begin construction in fourth-quarter 2021 and wrap up about one year later. For more information, see Industrial Info's reports on the power line and substation projects.

One of Entergy's largest transmission projects under construction is the multi-phase Medical Center Solution Project for the University of Mississippi at Jackson. Entergy is building a two-mile, $8 million line from the $18.9 million Mill Street Substation, which also is under construction, to the existing Monument Street Substation in Jackson. The company also is performing a $9 million line rebuild for an adjacent 2.9-mile stretch, and is performing a $4 million upgrade to the Monument Street Substation and a $4 million upgrade to the Rex Brown Substation.

The rebuild and upgrades are expected to wrap up toward the end of this year, while the Mill Street line and substation are expected to be completed toward the end of 2021. For more information, see Industrial Info's project reports on the Mill Street line, Mill Street Substation, adjacent line rebuild, Monument Street upgrade and Rex Brown upgrade.

In addition to the abovementioned capital-spending projects, Industrial Info is tracking more than 40 maintenance-related projects planned by Entergy. Click here for a list.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.