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 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," 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. 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. 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