CenterPoint seeks $678 mln for Ike restoration
HOUSTON, April 17 (Reuters) - Houston-based CenterPoint Energy Inc (CNP.N) will seek recovery of $677.8 million in costs to restore power to its southeast Texas customers following Hurricane Ike, the company said on Friday.
The company's transmission unit has filed a request with the Texas Public Utility Commission to recover $608 million in direct costs, plus regulatory expenses and carrying costs, CenterPoint said in a statement.
Hurricane Ike, which struck the Texas coast in September, did extensive damage to the electric distribution system and left some areas without power for weeks.
The filing comes a day after Texas Gov. Rick Perry signed legislation to allow electric utilities to accelerate cost-recovery process by selling bonds.
CenterPoint is expected to sell such state-backed bonds for a majority of its Ike restoration tab.
Ike knocked out power to 99 percent of CenterPoint's 2.26 million customers in the Houston-Galveston area, the company said.
New Orleans-based Entergy Corp (ETR.N), which supplies power in southeast Texas, has estimated its 2008 storm restoration cost at $580 million, according to Perry's office.
The bonds, which are backed by payments from customers' monthly bills, typically carry a lower interest rate than the rate the utilities can charge under state regulation. Utilities are able to pass along some of those savings to customers. (Reporting by Eileen O'Grady; Editing by Marguerita Choy)
