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) December 14,1994
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-11299 ENTERGY CORPORATION 13-5550175
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70112
Telephone (504) 529-5262
1-2703 GULF STATES UTILITIES COMPANY 74-0662730
(a Texas corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409) 838-6631
Form 8-K Page 1
December 16, 1994
Item 5. Other Materially Important Events
Entergy Corporation, Gulf States Utilities Company
On December 14, 1994, the Louisiana Public Service
Commission ("LPSC") ordered Cajun Electric Power Cooperative,
Inc. ("Cajun") to decrease the rates charged to its member
distribution cooperatives by approximately $30 million per year.
The rate decrease is associated with the LPSC's prior finding of
imprudence in Cajun's participation in the River Bend Steam
Electric Generating Station (nuclear) ("River Bend"). Gulf
States Utilities Company ("GSU") has significant business
relationships with Cajun, including co-ownership in the River
Bend and Big Cajun 2 Unit 3. GSU and Cajun own 70% and 30%
undivided interests, respectively, in River Bend and 42% and 58%
undivided interests, respectively, in Big Cajun 2 Unit 3.
As previously reported in the Form 10-Q for the
Quarterly Period Ended September 30, 1994, GSU and Cajun are
involved in significant litigation with respect to their joint
ownership of River Bend, and Cajun has not been paying its full
share of River Bend costs. GSU also previously has reported that
Cajun has serious financial problems, which could have potential
adverse effects upon the ultimate collectibility of amounts now
or in the future owed by Cajun to GSU. The rate decrease ordered
by the LPSC will, in GSU's estimation, make Cajun's financial
condition more precarious and could cause Cajun to seek relief
from its creditors in bankruptcy. The adverse effects upon GSU
of a bankruptcy proceeding by Cajun cannot be predicted at this
time.
Gulf States Utilities Company - LPSC Rate Review
As previously disclosed in the Form 10-Q for the
Quarterly Period Ended September 30, 1994, consultants to the
LPSC filed testimony on November 7, 1994, which recommended a
rate reduction of approximately $10.8 million for GSU's Louisiana
retail jurisdiction. On December 14, 1994, the LPSC ordered a
$12.7 million annual rate reduction for GSU effective in January
1995. The rate order included, among other things, a reduction
in GSU's Louisiana jurisdictional authorized return on equity
from 12.75% to 10.95%. GSU intends to appeal the action of the
LPSC and to seek appropriate injunctive relief. No assurance can
be given as to the timing or outcome of these proceedings.
Form 8-K Page 2
December 16, 1994
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 Corporation
By: /s/ Lee W. Randall
Lee W. Randall
Vice President and
Chief Accounting Officer
Gulf States Utilities Company
By: /s/ Lee W. Randall
Lee W. Randall
Vice President, Chief
Accounting Officer
and Assistant Secretary
Dated: December 16, 1994