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: April 19, 1996
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 70113
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
Item 5. Other Events
Entergy Corporation and Gulf States Utilities
Company
Gulf States Utilities Company, Southwestern
Electric Power Company, and members of the Cajun Electric
Power Cooperative, Inc. issued the following press release
on April 19, 1996:
MEMBERS COMMITTEE, SWEPCO, GSU
FILE REORGANIZATION PLAN FOR CAJUN
The Cajun Electric Members Committee, Southwestern
Electric Power Company (SWEPCO) and Gulf States Utilities
Company (GSU) today filed a reorganization plan for Cajun
Electric Power Cooperative, Inc. in the U.S. Bankruptcy
Court for the Middle District of Louisiana (Case No. 94-
114740).
Under the plan, wholesale rates to the member
distribution cooperatives that buy power from Cajun would be
reduced from 4.88 cents per kilowatt-hour to a proposed 3.74
cents per kilowatt-hour. That, in turn, would allow the
cooperatives to reduce retail rates to residential customers
by 20 to 25 percent. The Louisiana cooperatives serve a
population of more than 1 million people.
Also under the plan, Cajun's creditors would receive a
total value in excess of $1.2 billion, that includes $405
million in cash from SWEPCO to purchase the Big Cajun II
coal-fired power plant, Big Cajun I gas-fired power plant
and related non-nuclear assets. It also includes $497
million to $567 million in net present value from future
payments the member cooperatives would make to the federal
government's Rural Utilities Service (RUS), Cajun's largest
creditor, using a portion of the cooperatives' future income
from their retail customers. The remaining value comes from
existing liquid assets and a ratepayer trust fund that was
established as part of the bankruptcy procedure.
Finally, the plan resolves the complex legal an
financial issues resulting from Cajun's investment in the
River Bend nuclear power generating plant. It gives the RUS
a choice of auctioning Cajun's 30 percent ownership interest
in River Bend to the highest bidder, acquiring the ownership
interest itself, or conveying the ownership at no cost to
GSU, which owns the other 70 percent of the plant. In each
case, the plan provides for full funding of decommissioning
costs.
"The key to this plan is that it provides competitive
wholesale rates to the Cajun member cooperatives, which
serve more than 1 million Louisiana residents, while
maximizing value to the Cajun estate," said David Kleiman,
attorney for the Members Committee, which consists of 10 of
the 12 distribution cooperatives served by Cajun. "It's
important to provide the creditors with fair compensation,
and this plan certainly does that. But from the Members'
standpoint, it also means that for the first time in 15
years, the cooperatives in Louisiana will have rates that
are competitive, and they will be able to see the kind of
growth and development the rural areas of the state
deserve."
Noting the bankruptcy of one cooperative, the sale of
another, the pending sale of still another and the financial
difficulties of all cooperatives in the state, Kleiman said
other proposals may provide more value to the estate, but
that means higher, uncompetitive rates for the cooperative
and their customers. "That is not acceptable to the Members
Committee. The joint proposal of the Members, SWEPCO and
GSU provides a permanent solution to these long-standing
problems," he said.
The court appointed trustee for Cajun has indicated he
will submit a plan based on a competing proposal.
SWEPCO President and Chief Executive Officer Richard H.
Bremer said the comprehensive nature of the
Members/SWEPCO/GSU plan makes it a winner. "We also feel it
can be supported by the Louisiana Public Service Commission.
The Commission has been a strong proponent of competitive
rates for the cooperatives, and we appreciate the
encouragement from the Commission for the direction we've
taken with this joint proposal. We are committed to
providing competitive wholesale rates, and we look forward
to providing the information the Commission needs from us to
evaluate the Cajun proposals and conduct its regulatory
approval process," Bremer said.
GSU President Frank Gallaher said, "This plan provides
for resolution of various legal and regulatory matters
involving GSU and Cajun. The resolution of these cases
would be a major step forward and a positive feature of the
plan."
SWEPCO is a wholly owned electric subsidiary of Central
and South West Corporation (NYSE:CSR). GSU is a wholly
owned electric subsidiary of Entergy Corporation (NYSE:ETR).
Item 7 Financial Statements and Exhibits
(a) Exhibits
(2) Plan of Reorganization for Cajun
Electric Power Cooperative, Inc.,
submitted jointly by the Members
Committee, Southwestern Electric Power
Company and Gulf States Utilities
Company In Re: Cajun Elecric Power
Cooperative, Inc. (Case No. 94-11474)
in the United States Bankruptcy Court
for the Middle District of Louisiana
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/ Louis E. Buck, Jr.
Louis E. Buck, Jr.
Vice President and
Chief Accounting Officer
Gulf States Utilities Corporation
By: /s/ Louis E. Buck, Jr.
Louis E. Buck, Jr.
Vice President, Chief Accounting
Officer and Assistant Secretary
Dated: April 22, 1996