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) October 24, 1996
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
1-10764 ENTERGY ARKANSAS, INC. 71-0005900
(an Arkansas corporation)
425 West Capitol Avenue, 40th Floor
Little Rock, Arkansas 72201
Telephone (501) 377-4000
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Form 8-K Page 1
October 29, 1996
Item 5. Other Information
A. Entergy Corporation and Entergy Arkansas, Inc. issued
the following press release on October 24, 1996.
Entergy will file a Transition to Competition plan with the
Arkansas Public Service Commission (APSC) today that calls for
the accelerated writedown of pre-1996 Arkansas Nuclear One
investment costs and acceleration of the writedown for Arkansas'
allocated share of Grand Gulf. Both writedowns would end seven
years from the approval date by the APSC.
The proposal includes rate decreases totaling $123 million
over the 18-month period from mid-1997 to early 1999. The first
decrease would amount to $75 million upon APSC approval, followed
by decreases of $33 million in early 1998 and $15 million in
early 1999. With respect to the impact of this filing on Entergy
Arkansas' net income, approximately $100 million of the rate
reductions would be offset by the expiration of deferred rate
recovery mechanisms associated with the Grand Gulf phase-in and
other deferrals.
"This plan creates an orderly transition process to bring
about a competitive marketplace in seven years," said Entergy
Executive Vice President for External Affairs Jerry Jackson. "It
ensures there will be no cost shifting from one group of
customers to another, and it makes service reliability a top
priority,"
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Form 8-K Page 2
October 29, 1996
By paying off the ANO and Grand Gulf costs at an earlier
date, Entergy will be better able to offer customers competitive
prices in an unregulated, competitive environment, Jackson
explained.
A major feature of the filing is that it includes a proposal
for a nonbypassable charge covering the unamoritized nuclear
investment, including Grand Gulf purchases and decommissioning
costs currently reflected in rates.
"Our filing with the APSC is a comprehensive plan that meets
the test of fairness and reasonableness," Jackson said. "We look
forward to working with the Commission on this issue."
B. Entergy Corporation and Entergy Arkansas, Inc. issued
the following press release on October 28, 1996.
Entergy Corporation's Board of Directors has authorized its
nuclear management subsidiary, Entergy Operations, Inc., to
negotiate a contract, with appropriate cancellation provisions,
for fabrication and replacement of steam generators at Arkansas
Nuclear One, Unit 2.
It generally takes more than four years for steam generators
to be built and delivered. Entergy estimated that the cost of
fabrication and replacement of steam generators could be
approximately $150 million. Entergy will have an option to cancel
the order up to year 2000.
As previously reported, cracks in steam generator tubes at
ANO-2 were repaired after being discovered during an outage in
1992. Further inspections and repairs were conducted at
subsequent refueling and mid-cycle outages, including the most
recent refueling outage in October 1995.
<PAGE>
Form 8-K Page 3
October 29, 1996
Entergy said the Board's decision to proceed is based to a
great extent on the excellent operating performance of the unit.
The 858-MW Combustion Engineering pressurized water reactor
achieved a three-year average capacity factor between 1993-95 of
87.7 percent. On August 19, 1996, the unit broke its previous
record of 257 consecutive days on line and has now operated 327
days without interruption.
Arkansas Nuclear One is owned by Entergy Arkansas, Inc., a
wholly owned Entergy subsidiary.
<PAGE>
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 Arkansas, Inc.
By: /s/Louis E. Buck
Louis E. Buck
Vice President and Chief
Accounting Officer
Dated: October 29, 1996
