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 23, 1999
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
Entergy Corporation
Reference is made to the Annual Report on Form 10-K for
Entergy Corporation ("Entergy") and Entergy Gulf States, Inc.
("Entergy Gulf States") for the year ended December 31, 1998, and
the Quarterly Report on Form 10-Q of Entergy and Entergy Gulf
States for the quarter ended March 31, 1999, for a discussion of
Entergy Gulf States' rate proceedings filed in 1996 before the
Public Utility Commission of Texas ("PUCT").
Entergy Gulf States announced July 19, 1999 that the PUCT
has ordered an additional $24 million refund in connection with a
rate case that was filed in November 1996. The additional refund
results from a recalculation using the base rate revenues from
the period June 1, 1996 through the receipt of the final PUCT
order in late 1998. The method originally used in the refund
calculation included in the PUCT's final order utilized the test
year (12 months ended June 30, 1996) base rate revenue level.
The order previously issued by the PUCT included a rate refund of
approximately $82 million after adjusting it to the actual date
the refund obligation ended.
Intervenors in the rate proceedings contended that the
effect of increased sales should be taken into account in the
refund calculation. To resolve this issue, Entergy requested
clarification from the PUCT on the issue of applying sales growth
to the original refund amount and to the various offset amounts
the PUCT made to the refund, since the original order was not
clear on this point. On Thursday, July 15, 1999, the PUCT ruled
that sales growth should be applied to the original refund amount
but not to the various offset amounts.
The one-time charge, which will be recorded in the second
quarter of 1999, will negatively impact Entergy Corporation's
earnings per share by approximately $.06 and will reduce Entergy
Gulf States' earnings by approximately $14.3 million. Entergy
Gulf States customers are likely to see the effect of the refund
in August and September bills.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
1934, the registrants have duly caused this report to be signed
on their behalf by the undersigned hereunto duly authorized.
ENTERGY CORPORATION
ENTERGY GULF STATES, INC.
By: /s/ Steven C. McNeal
Steven C. McNeal
Vice President and Treasurer
Dated: July 23, 1999
