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) April 28, 1998
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
0-5807 ENTERGY NEW ORLEANS, INC. 72-0273040
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 529-5262
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Item 5. Other Events
Entergy New Orleans, Inc.
For the quarter ended March 31, 1998, Entergy New Orleans,
Inc. (the "Company") reported a loss of $1.1 million The Company
attributed the first quarter results primarily to a decrease in
electric and gas rates, which occurred pursuant to a settlement
agreement between the Company and the New Orleans City Council in
July 1997. This settlement reflected an $18 million annual base
rate reduction. In the first quarter of 1998, base rate revenues
declined by $3.5 million. In addition, fuel cost recovery (which
does not affect net income) fell by $5.6 million, the effect of
weather on sales volume produced a $1.7 million revenue decline
and other revenue fell by $0.2 million due primarily to a $1.6
million write-off of unrecoverable receivables, while sales for
resale increased by $1.9 million due to increased sales to
affiliate companies. On a combined basis, these factors produced
an overall revenue decline of $9.1 million for the first quarter
of 1998.
The Company's operating expenses for the first quarter of
1998 declined by approximately $4.4 million from the same quarter
in the prior year, primarily due to decreases in fuel and
purchased power costs. These decreases were partially offset by
increases in other operations and maintenance expense and greater
fuel purchases to meet increased generation requirements. Also,
other regulatory credits (which serve to offset operating
expenses) increased by about $2.0 million primarily as a result
of the net under-recovery of Grand Gulf 1 related costs in the
first quarter of 1998 compared to the net over-recovery of such
costs in the first quarter of 1997. Income tax expense dropped
in the first quarter of 1998 to $62,000 from $2.2 million for the
comparable period in 1997, as a result of the net loss in 1998,
offset by an increased reversal of previously recorded AFUDC
amounts included in depreciation.
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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 NEW ORLEANS, INC.
By: /s/ Louis E. Buck
Louis E. Buck
Vice President and
Chief Accounting Officer
Dated: April 28, 1998
