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ENTERGY SUBSIDIARY SEEKS APPROVAL TO FORM NEW COMPANY, ACQUIRE ASSETS OF LIGHTING FIRM

 ENTERGY SUBSIDIARY SEEKS APPROVAL TO FORM
 NEW COMPANY, ACQUIRE ASSETS OF LIGHTING FIRM
 NEW ORLEANS, March 31 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) and its non-utility subsidiary, Electec, Inc., today asked the Securities and Exchange Commission (SEC) for permission for form another subsidiary.
 Entergy said the proposed new subsidiary -- which has yet to be named -- would then acquire the assets and lighting services business of 3-year-old American Systems and Service, Inc. (American SASI) of Memphis, Tenn., and begin offering energy efficiency services. Initially, the new subsidiary would specialize in the commercial lighting market, but would eventually expand into other efficiency applications, technologies, and markets.
 Ken Breeden, a marketing senior vice president at Entergy Services, Inc., said greater efficiency in commercial lighting would offer benefits to the Entergy System and its customers. "One benefit," Breeden said, "would be a reduction in electric power demand due to the efficiencies. That, in turn, would allow Entergy to defer the need for new generating capacity, a goal of the System's Least- Cost Planning initiatives."
 Once SEC permission is granted, the subsidiary will mark Entergy's second venture into markets that rely on the innovative use of electricity and technology. The first was Entergy's 1991 venture with Sunnyvale, Calif.-based First Pacific Networks, Inc. (FPN). Entergy and FPN are collaborating in the development of a customer-controlled demand-side management system for electric utility use called "PowerView(TM)" which is currently being field tested in Arkansas.
 The new Electec subsidiary -- which will operate in an unregulated environment -- will acquire American SASI from its parent company, Systems and Service International (SASI), also of Memphis. The Electec subsidiary will acquire all of American SASI's assets, as well as approximately 20 key employees. Entergy will also acquire a 9.95 percent equity interest in SASI and occupy a seat on SASI's board of directors.
 The Electec subsidiary will take over exclusive distribution rights to SASI's patented Edison 21 Monitor and other proprietary products developed by SASI. The Edison 21 Monitor is the cornerstone of SASI's lighting efficiency product line. It is an attachment to fluorescent lighting systems that enhances efficiency by more precisely regulating electric current and voltage.
 Other aspects of the acquisition agreement involve a secured loan to SASI to fund research and development efforts and to ensure that products are brought on-line on schedule. Overall, Entergy's initial investment in the new subsidiary's venture will total approximately $8 million.
 The subsidiary plans to conduct its business within and beyond the Entergy System's service area by providing energy management services for a fee. A customer's entire energy system would be audited to determine potential savings, an efficient lighting system would be designed, and equipment installed. The subsidiary would then derive revenue from a share of the customer's projected energy cost savings, or through some other means agreeable to the customer and the subsidiary.
 The subsidiary's activities may also be included in any system operating company's least-cost planning initiative. The filing makes clear, however, that the new subsidiary's activities within the system's retail service area "will be implemented in a phased way, in a manner that such demand for existing capacity would not be significantly reduced." In other words, the new subsidiary's successful implementation of energy efficiency programs would not be allowed to reduce demand so much that an increase in rates would be needed.
 The new company will be a wholly owned subsidiary of Entergy Corporation's Electec subsidiary. Entergy is a registered public utility holding company operating an electric power system in portions of Arkansas, Louisiana and Mississippi, with a service area of approximately 90,000 square miles and a customer base in excess of 1.7 million.
 -0- 3/31/92
 /CONTACT: Patrick Sweeney of Entergy, 504-569-4160/
 (ETR) CO: Entergy Corporation; Electec, Inc.; American Systems and Service,
 Inc. ST: Louisiana IN: UTI SU: TNM


BR-EA -- AT012 -- 3543 03/31/92 15:58 EST
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Publication:PR Newswire
Date:Mar 31, 1992
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