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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JUNE 4, 1998
ENSERCH CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
TEXAS 1-3183 75-0399066
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(STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER
JURISDICTION FILE NUMBER) IDENTIFICATION NO.)
OF INCORPORATION)
ENERGY PLAZA, 1601 BRYAN STREET, DALLAS, TEXAS 75201-3411
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (214) 812-4600
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ITEM 5. OTHER EVENTS.
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Reference is made to (i) the sixth and seventh paragraphs of
the Regulation and Rates section of Item 1 contained in the
Registrant's Form 10-K for the fiscal year ended December 31,
1997 (10-K); (ii) the Regulation and Rates section of the
Financial Condition section of Management's Discussion and
Analysis of Financial Condition and Results of Operation
contained in the 10-K; (iii) the Inquiry into Lone Star Gas
Company Rates section of Note 10 of the financial statements
contained in the 10-K and (iv) Note 7 of the financial statements
contained in the Registrant's Form 10-Q for the quarter ended
March 31, 1998.
In August, 1996, the Railroad Commission of Texas (RRC)
ordered a general inquiry (Gas Utility Docket 8647) into the
rates and service of Lone Star Gas Company, a division of a
wholly-owned subsidiary of the Registrant (Lone Star Gas). On
June 4, 1998, Lone Star Gas announced that it had received RRC
approval of a settlement agreement among it and various cities in
Texas which had intervened in the proceeding. The settlement
provides that Lone Star Gas will credit a total of $18 million to
residential and commercial customers over the five-month periods
of November 1998 through March 1999 and November 1999 through
March 2000; and, accordingly, an average residential customer is
expected to experience a $9 reduction in gas costs for the 10-
month period. The earnings of Lone Star Gas will not be affected
by the settlement due to reserves previously established. As a
result of the settlement, Docket 8647 has been dismissed.
As part of the settlement, Lone Star Gas and the intervenors
agreed to dismiss their respective appeals of the prior Lone Star
Gas city gate rate case (Gas Utilities Docket 8654).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
ENSERCH CORPORATION
By: /s/ Robert S. Shapard
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Name: Robert S. Shapard
Title: Treasurer and Assistant
Secretary
Dated: June 24, 1998
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