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) November 27, 1996
Commission Registrant, State of Incorporation, I.R.S.
File Number Address and Telephone Number Employer
Identification No.
1-11299 ENTERGY CORPORATION 72-1229752
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 529-5262
1-2703 ENTERGY GULF STATES, INC. 74-0662730
(a Texas corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409) 838-6631
Item 5. Other Information
Entergy Corporation, and Entergy Gulf States, Inc.
A U.S. bankruptcy court judge has approved proposals by
three groups seeking to acquire the non-nuclear assets of Cajun
Electric Power Cooperative ("Cajun") and has signed an order that
establishes rules for how Cajun's creditors will vote on the
three plans. Creditors will have until December 6, 1996 to cast
ballots for the plan they want the court to approve. On December
16, 1996, the bankruptcy court is scheduled to begin hearings on
the balloting and the plan that will be adopted.
The bankruptcy trustee for Cajun is supporting a $1.09
billion bid by a group of three companies: NRG Energy, Inc.,
Zeigler Coal Holding Co., and Southern Electric International,
Inc. This plan is also supported by the Rural Utilities Service,
Cajun's largest creditor.
One of the competing bids is a $780 million cash offer by
Southwestern Electric Power Company, Entergy Gulf States, Inc.,
and ten of the rural distribution cooperatives that buy power
from Cajun.
Enron Capital Trade and Resources Corporation, a subsidiary
of Enron Corporation, is offering a bid of $773 million in cash
for the Cajun assets.
Reference is made to Entergy Gulf States, Inc.'s and Entergy
Corporation's Form 10-Q for the quarter ended September 30, 1996,
for a discussion of the agreement settling pending disputes
between Entergy Gulf States, Inc. and Cajun.
Entergy Corporation and Entergy Gulf States, Inc.
On November 27, 1996, Entergy Gulf States, Inc. filed a plan
with the Public Utility Commission of Texas (PUCT) that calls for
the accelerated recovery of costs associated with the River Bend
nuclear plant. The costs would be recovered over a seven year
period and include only those River Bend costs already in rate
base. River Bend costs not in rate base and which are the
subject of an appeal pending before the Texas Supreme Court are
not included in the plan.
This plan is designed to achieve an orderly transition to
retail electric competition in Texas while protecting ratepayers
from potential cost shifting among customer classes. It contains
the following key elements:
Base rates will be frozen for seven years.
The investment in the River Bend nuclear plant as of June
30, 1996 will be recovered over a seven year period. At the end
of this period, that investment would cease to be recovered from
customers through electric rates.
To prevent unfair cost shifting among customer classes, the
plan provides for a universal service charge to be paid by all
customers, including those who choose to purchase their
electricity from another source, but remain connected to the
Entergy Gulf States system. For customers who continue to
purchase electricity from Entergy Gulf States, Inc., electric
bills would not increase because the charge is already included
in electric rates.
The filing proposes performance standards for the River Bend
power plant by setting a ceiling on operating, capital and fuel
expenses. If expenses exceed the ceiling, then Entergy Gulf
States, Inc. will absorb the higher costs unless they were
caused by a catastrophic event. If expenses fall below the
ceiling, the Entergy Gulf States, Inc. will benefit from those
efficiencies.
The filing also includes a performance rate plan that has a
return on equity band of two percent around a mid-point
established by the PUCT. Entergy Gulf States, Inc. will absorb
costs or keep savings within the band. However, if costs or
savings are outside of the band, then these would be shared
equally with customers. This proposal provides an incentive for
Entergy Gulf States, Inc. to operate more efficiently.
The PUCT has not yet established a procedural schedule for
this proceeding.
Entergy Corporation
Entergy Technology Holding Company, on November 21, 1996,
completed the acquisition of Sentry Alarm Systems of America,
Inc. ("Sentry") for approximately $41 million of debt. Sentry is
a full-service security monitoring company serving more than
25,000 customers throughout Florida. Sentry, which has $22
million in annual revenue, is headquartered in Clearwater,
Florida. Sentry sells, installs, monitors and services custom-
designed security systems including fire, burglary, access and
environmental control, and closed-circuit TV, for customers
ranging from homeowners to industrial and commercial accounts.
Entergy Corporation
Entergy Corporation has agreed to acquire a 25 percent
interest in the Chilean gas-fired power plant project, San Isidro
SA. The other 75 percent is owned by Chile's Empresa Nacional de
Electridicidad SA, also known as Endesa.
Construction of the $200 million San Isidro plant is
expected to start in December of 1996, with the plant due to
start operating in October of 1998. The 370 megawatt plant will
be built by Japan's Mitsubishi Corporation. Endesa signed a
contract on July 19, 1996 with the gas pipeline project GasAndes
SA to supply 1.65 million cubic meters of gas a day to the plant
for the next 25 years.
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 GULF STATES, INC.
By: /s/Louis E. Buck
Louis E. Buck
Vice President and
Chief Accounting Officer
Dated: November 27, 1996