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) July 14, 1998
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-11299 ENTERGY CORPORATION 72-1229752
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 529-5262
1-2703 ENTERGY GULF STATES, INC. 74-0662730
(a Texas corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409) 838-6631
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Item 5. Other Events
Louisiana
Pursuant to an agreement approved by the Louisiana Public
Service Commission ("LPSC") on July 14, 1998, Entergy Gulf
States, Inc. agreed to implement a prospective $18 million annual
base rate reduction for its 320,000 Louisiana retail customers.
The reduction, which does not affect Entergy Gulf States, Inc.'s
pending proceedings of its second and third earnings reviews
filed in May of 1995 and 1996, respectively, will go into effect
on July 29, 1998.
Texas
On July 22, 1998, the Public Utility Commission of Texas
("PUCT") entered a final order in Entergy Gulf States, Inc.'s
current rate case. The decision will result in a $122 million
annual rate reduction, offset by recovery of accounting order
deferrals, resulting in a net reduction of approximately $81
million per annum through May 1999. The order also imposes a
rate refund of approximately $82 million retroactive to June 1,
1996. The order disallows recovery through rates by Entergy Gulf
States of $49 million of the charges for services provided by
Entergy affiliates, and provides a rate incentive for Entergy
Gulf States to improve service quality.
The PUCT, in issuing this order, rejected the previously
reported settlement agreed among Entergy Gulf States, Inc. and a
majority of the other constituencies represented in the rate
proceeding. The settlement agreement, which had been revised
once for the purpose of gaining broader support, was never
approved by the Texas cities which have original rate regulation
jurisdiction over Entergy Gulf States, Inc.
Entergy Gulf States, Inc. will actively pursue the avenues
available to it to request a rehearing and/or appeal of the
PUCT's decision in the rate proceeding.
On March 13, 1998, on remand from the Supreme Court of
Texas, the PUCT ruled by a vote of two to one that Entergy Gulf
States should not be allowed to recover in rates any of the $1.4
billion of abeyed costs associated with its Texas jurisdictional
investment in River Bend. These costs have been held in abeyance
since 1988, during which time they have been the subject of
appeals by Entergy Gulf States. Entergy Gulf States filed a
motion for rehearing on this issue with the PUCT on April 2,
1998. The motion was denied by the PUCT by order dated July 8,
1998. Entergy Gulf States has appealed the PUCT's decision on
this matter in the Texas courts.
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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 hereunto duly authorized.
ENTERGY CORPORATION
ENTERGY GULF STATES, INC.
By: /s/ Louis E. Buck
Louis E. Buck
Vice President, Chief Accounting Officer
and Assistant Secretary
Dated: July 24, 1998
