SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
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 Louisiana corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 529-5262
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Item 5. of the Form 8-K of Entergy New Orleans, Inc., filed on
April 28, 1998, is hereby further amended in its entirety and
restated to read as follows:
Item 5. Other Information
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 first
quarter results are primarily attributable 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, of which $17 million was allocated to electric
rates and $1 million was allocated to gas rates. In the first
quarter of 1998, electric base rate revenues declined by $3.5
million. In addition, fuel cost recovery (which does not affect
net income) fell by $5.6 million and the effect of weather on
electric sales volume resulted in a $1.7 million revenue decline.
Other electric revenue fell by $0.2 million due primarily to a
$1.6 million write-off of unrecoverable receivables, while
electric sales for resale increased by $1.9 million due to
increased sales to affiliate companies. Gas operating revenues
declined by $2.2 million for the first quarter of 1998 compared
to the same period in 1997, due to the lower unit purchase price
of gas purchased for resale (which does not affect net income).
On a combined basis, these factors produced an overall revenue
decline for the Company of $11.3 million in 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. 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/ Michael G. Thompson
Michael G. Thompson
Senior Vice President and
General Counsel
Dated: April 29, 1998
