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) December 14,1994 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 70112 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
Form 8-K Page 1 December 16, 1994 Item 5. Other Materially Important Events Entergy Corporation, Gulf States Utilities Company On December 14, 1994, the Louisiana Public Service Commission ("LPSC") ordered Cajun Electric Power Cooperative, Inc. ("Cajun") to decrease the rates charged to its member distribution cooperatives by approximately $30 million per year. The rate decrease is associated with the LPSC's prior finding of imprudence in Cajun's participation in the River Bend Steam Electric Generating Station (nuclear) ("River Bend"). Gulf States Utilities Company ("GSU") has significant business relationships with Cajun, including co-ownership in the River Bend and Big Cajun 2 Unit 3. GSU and Cajun own 70% and 30% undivided interests, respectively, in River Bend and 42% and 58% undivided interests, respectively, in Big Cajun 2 Unit 3. As previously reported in the Form 10-Q for the Quarterly Period Ended September 30, 1994, GSU and Cajun are involved in significant litigation with respect to their joint ownership of River Bend, and Cajun has not been paying its full share of River Bend costs. GSU also previously has reported that Cajun has serious financial problems, which could have potential adverse effects upon the ultimate collectibility of amounts now or in the future owed by Cajun to GSU. The rate decrease ordered by the LPSC will, in GSU's estimation, make Cajun's financial condition more precarious and could cause Cajun to seek relief from its creditors in bankruptcy. The adverse effects upon GSU of a bankruptcy proceeding by Cajun cannot be predicted at this time. Gulf States Utilities Company - LPSC Rate Review As previously disclosed in the Form 10-Q for the Quarterly Period Ended September 30, 1994, consultants to the LPSC filed testimony on November 7, 1994, which recommended a rate reduction of approximately $10.8 million for GSU's Louisiana retail jurisdiction. On December 14, 1994, the LPSC ordered a $12.7 million annual rate reduction for GSU effective in January 1995. The rate order included, among other things, a reduction in GSU's Louisiana jurisdictional authorized return on equity from 12.75% to 10.95%. GSU intends to appeal the action of the LPSC and to seek appropriate injunctive relief. No assurance can be given as to the timing or outcome of these proceedings. Form 8-K Page 2 December 16, 1994 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/ Lee W. Randall Lee W. Randall Vice President and Chief Accounting Officer Gulf States Utilities Company By: /s/ Lee W. Randall Lee W. Randall Vice President, Chief Accounting Officer and Assistant Secretary Dated: December 16, 1994
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