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) May 4, 1998
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 Events
Entergy Corporation
Reference is made to the Annual Report on Form 10-K for
Entergy Corporation ("Entergy") and Entergy Gulf States, Inc.
("Entergy Gulf States") for the year ended December 31, 1997, and
the Quarterly Report on Form 10-Q of Entergy and Entergy Gulf
States for the quarter ended March 31, 1998, for a discussion of
litigation in respect of certain coal supply contracts related to
the Cajun Electric Power Cooperative ("Cajun") bankruptcy.
As described therein, the Bankruptcy Judge in the Cajun
bankruptcy proceeding ruled in response to Entergy Gulf States'
petition for declaratory judgment that Entergy Gulf States was
not liable to the coal suppliers to Big Cajun 2, a coal-fired
power station located in Point Coupee Parish, Louisiana, of which
Entergy Gulf States owns 42% of Unit 3. The coal suppliers
appealed the decision to the United States District Court for the
Eastern District of Louisiana ("District Court").
Entergy Gulf States filed a similar petition for a
declaratory judgment against the rail and barge companies that
transport the coal from Wyoming to Big Cajun 2. The motion for
summary judgment filed by Entergy Gulf States was denied and
concurrently with this action, the Judge filed a report and
recommendation with the District Court in which the appeal of the
ruling against the coal suppliers was pending seeking a remand of
the appeal for further consideration. This report stated that,
upon further review, the Bankruptcy Court believed that
reconsideration of the initial ruling in the declaratory judgment
action against the coal suppliers was necessary in light of his
ruling on the summary judgment in the coal transporters action.
On April 30, 1998, the District Court remanded the
declaratory judgment against the coal suppliers to the Bankruptcy
Court, and commencing on May 4, 1998, a trial in the Bankruptcy
Court was held on the bifurcated issue of liability of Entergy
Gulf States to both the coal suppliers and the rail and barge
companies. The trial has been concluded, but no assurance can be
given regarding the timing of or the outcome of the matter.
Because a Cajun reorganization plan has yet to be confirmed by
the Bankruptcy Judge, it is uncertain whether Entergy Gulf States
would have any liability ultimately asserted against it by the
coal suppliers and transporters for any portion of their claims.
Collectively, these coal and transportation companies have
asserted claims which exceed $1.6 billion, sums which Entergy
Gulf States believes to be significantly exaggerated. The
claimants allege, in substance, that Entergy Gulf States should
be responsible, under Louisiana law, for 50% of that amount as a
joint venturer with Cajun in the entire Big Cajun 2 power station
rather than only 42% of Big Cajun 2 Unit 3 (which is equivalent
to 14% of the entire power station). Entergy Gulf States
believes this position is totally without merit and that it has
no liability to either the coal suppliers or transporters.
Entergy Gulf States' position is that it was not engaged in a
joint venture with Cajun but rather that Cajun was the operator
of the facility in which Entergy Gulf States owned an undivided
interest.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
1934, the registrants have duly caused this report to be signed
on their behalf by the undersigned hereunto duly authorized.
ENTERGY CORPORATION
ENTERGY GULF STATES, INC.
By: /s/Louis E. Buck
-------------------
Louis E. Buck
Dated: May 12, 1998