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 earliest event reported) March 22, 1996
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-11299 ENTERGY CORPORATION 13-5550175
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 529-5262
1-2703 GULF STATES UTILITIES COMPANY 74-0662730
(a Texas corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409) 838-6631
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Form 8-K Page 1
March 22, 1996
Item 5. Other Events
Entergy Corporation and Gulf States Utilities Company
Gulf States Utilities Company, Southwestern Electric
Power Company, and members of the Cajun Electric Power
Cooperative, Inc. issued the following press release on
March 22, 1996:
SWEPCO, GSU, CO-OP MEMBERS SUBMIT
PROPOSAL TO END CAJUN ELECTRIC BANKRUPTCY
SHREVEPORT--Southwestern Electric Power Company (SWEPCO),
Gulf States Utilities Company (GSU), and the Members Committed of
Cajun Electric Power Cooperative, Inc., have filed a joint
proposal to bring an end to the Cajun bankruptcy proceeding.
SWEPCO is a wholly owned electric operating subsidiary of
Central and South West Corporation (NYSE: CSR). GSU is a wholly
owned electric operating subsidiary of Entergy Corporation
(NYSB:ETR). The Members Committee represents 10 of the 12
Louisiana distribution cooperatives that are served by Cajun, a
generation and transmission cooperative. The co-ops purchase
wholesale electricity from Cajun and provide service to a
population of 1 million people in 56 of the state's 64 parishes.
The proposal was submitted March 8, 1996, in response to a
formal bid procedure established by Ralph Mabey, the trustee for
Cajun appointed by Judge Frank Polozola of the U.S. District
Court, Middle District of Louisiana.
"SWEPCO, GSU and the Members Committee filed the joint
proposal because we believe that together we can provide a long-
term solution for many complex issues involved in the
bankruptcy," said SWEPCO President and Chief Executive Officer
Richard H. Bremer. "Ours is a high road approach that is unique
in at least three important ways."
It is a comprehensive approach submitted by the key parties
whose agreement will resolve all existing litigation and the
current bankruptcy proceeding;
It provides significant value, both immediately and over the
long term, to the federal government's Rural Utilities Services
(RUS), Cajun's largest secured creditor; and
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Form 8-K Page 2
March 22, 1996
It results in highly competitive wholesale rates which will
allow the cooperatives to be viable, competitive, efficient and
reliable suppliers of electricity for Louisiana ratepayers.
In the joint proposal, SWEPCO would purchase Cajun's non-
nuclear assets, including a three-unit coal plant (Big Cajun II)
and a two-unit natural gas plant (Big Cajun I), and would serve
the member co-ops through new wholesale power supply agreements
at significantly lower rates. A spokesperson for the Members
Committee stated that the average residential customer may see a
decrease in their monthly billings of as much as 20 to 25
percent, which will allow them to enjoy rates comparable to their
neighbors that are served by municipals and investor owned
utilities.
The joint proposal also will resolve disputes between GSU
and Cajun over the River Bend nuclear generating station. GSU
owns 70 percent of River Bend and operates the plant; Cajun owns
30 percent. As part of the proposal, GSU, which is Cajun's
second largest creditor, would release its claims against Cajun
and would allow Cajun to convey its 30 percent ownership in River
Bend to GSU with decommissioning obligations fully funded by
Cajun.
"Providing a solution to the complex legal issues between
GSU and Cajun is a hallmark of the joint proposal," said Frank
Gallaher, President of GSU. "It is significant because
litigation was expected to take several years and be costly to
all sides."
Members of the Louisiana Public Service Commission have
expressed their support for a proposal that would provide
competitively priced wholesale power to the co-ops so as to
reduce rates for their customers throughout the state. The LPSC
has been furnished with information concerning the proposal, and
the parties have sought the Commission's support.
The trustee for Cajun has indicated that he expects to
select a lead proposal by April 8, and to file a plan of
reorganization with the bankruptcy court on or before April 22,
1996. The timing and completion of the transactions proposed by
SWEPCO, GSU and the Members will depend on bankruptcy court
approval of a reorganization plan and any required regulatory
approvals.
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Form 8-K Page 3
March 22, 1996
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
Gulf States Utilities Company
By: /s/ William J. Regan, Jr.
William J. Regan, Jr.
Vice President and Treasurer
Dated: March 22, 1996
