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) July 14, 1998 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 1-2703 ENTERGY GULF STATES, INC. 74-0662730 (a Texas corporation) 350 Pine Street Beaumont, Texas 77701 Telephone (409) 838-6631 Item 5. Other Events Louisiana Pursuant to an agreement approved by the Louisiana Public Service Commission ("LPSC") on July 14, 1998, Entergy Gulf States, Inc. agreed to implement a prospective $18 million annual base rate reduction for its 320,000 Louisiana retail customers. The reduction, which does not affect Entergy Gulf States, Inc.'s pending proceedings of its second and third earnings reviews filed in May of 1995 and 1996, respectively, will go into effect on July 29, 1998. Texas On July 22, 1998, the Public Utility Commission of Texas ("PUCT") entered a final order in Entergy Gulf States, Inc.'s current rate case. The decision will result in a $122 million annual rate reduction, offset by recovery of accounting order deferrals, resulting in a net reduction of approximately $81 million per annum through May 1999. The order also imposes a rate refund of approximately $82 million retroactive to June 1, 1996. The order disallows recovery through rates by Entergy Gulf States of $49 million of the charges for services provided by Entergy affiliates, and provides a rate incentive for Entergy Gulf States to improve service quality. The PUCT, in issuing this order, rejected the previously reported settlement agreed among Entergy Gulf States, Inc. and a majority of the other constituencies represented in the rate proceeding. The settlement agreement, which had been revised once for the purpose of gaining broader support, was never approved by the Texas cities which have original rate regulation jurisdiction over Entergy Gulf States, Inc. Entergy Gulf States, Inc. will actively pursue the avenues available to it to request a rehearing and/or appeal of the PUCT's decision in the rate proceeding. On March 13, 1998, on remand from the Supreme Court of Texas, the PUCT ruled by a vote of two to one that Entergy Gulf States should not be allowed to recover in rates any of the $1.4 billion of abeyed costs associated with its Texas jurisdictional investment in River Bend. These costs have been held in abeyance since 1988, during which time they have been the subject of appeals by Entergy Gulf States. Entergy Gulf States filed a motion for rehearing on this issue with the PUCT on April 2, 1998. The motion was denied by the PUCT by order dated July 8, 1998. Entergy Gulf States has appealed the PUCT's decision on this matter in the Texas courts. 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, Chief Accounting Officer and Assistant Secretary Dated: July 24, 1998