NEW YORK (Dow Jones)--Based on the last major storm to damage the Houston electrical grid, some refiners in the area could be without power for at least two weeks if Hurricane Rita hits the city, according to Centerpoint Energy (CNP), Houston's power distribution company.
Alicia, a Category 3 hurricane, slammed into Houston in 1983, knocking out power for two weeks to 750,000 of Centerpoint's 1 million customers at the time, said spokeswoman Leticia Lowe.
"Customers can expect to be out at least two weeks," she said.
Centerpoint now has about 1.8 million customers, about 2,000 of which are industrial facilities. The company serves a number of area refiners, Lowe said, though she couldn't say how many.
The Houston area is home to 13% of the country's refining capacity. Exxon Mobil Corp. (XOM), BP PLC (BP), Valero Energy Corp. (VLO), Royal Dutch Shell PLC (RDSB.LN), Marathon Oil Corp. (MRO) and ConocoPhillips (COP) all own refineries nearby.
Centerpoint's maintenance crews are somewhat depleted right now, because the utility has sent personnel to New Orleans to help Entergy Corp. (ETR), the city's main utility, restore power after Hurricane Katrina. Centerpoint would expect help from other utilities if Rita, which is expected to travel west this week across the Gulf of Mexico toward the Texas coast, were to hit Houston, Lowe said.
Centerpoint only delivers power to customers. It relies mainly on Texas Genco Inc., a wholesale power company owned by a private equity consortium, to generate its electricity. Texas Genco didn't immediately return calls seeking comment. |
