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GULF STATES UTILITIES COMPANY MAKES ANNOUNCEMENT

    BEAUMONT, Texas, Sept. 15 /PRNewswire/ -- The Third District Court of Appeals in Austin today ruled that the Public Utility Commission of Texas decision to disallow $1.45 billion of Gulf States Utilities Co.'s (NYSE: GSU) investment in its River Bend nuclear plant should be reconsidered by the commission.  As part of today's ruling by the three justices, GSU's original River Bend case (Docket 7195) is remanded to the PUCT for further review.
    Company officials said they were pleased that the appeals court had reversed the final order of the PUCT in the 1988 decision.  In Docket 7195, the commissioners had said they wanted GSU to return with additional documentation showing why River Bend costs had grown beyond a 1979 cost estimate.
    GSU immediately appealed the 1988 PUCT decision.  The company also filed a new rate case (Docket 8702) in 1989 that included its Regional Recovery Plan, designed to put the set-aside $1.45 billion portion of River Bend investment into an inventory plan.  In the meantime, GSU opponents obtained a ruling from the district court that said the PUCT did not have the authority to consider the prudence of River Bend construction costs in another proceeding.  In September 1990, the Texas Supreme Court upheld that district court decision.
    If the PUCT eventually rules favorably regarding the set-aside portion of River Bend investment, GSU will avoid a large write-off, company officials noted.  However, customers' bills will not increase because Entergy Corp., which is in the process of merging with Beaumont- based GSU, has agreed to a five-year ceiling on rates.
    -0-             09/15/93
    CONTACT:  Susan Huff Gilley, Gulf States Utilities Company, 409-839-2846
    (GSU) CO:  GULF STATES UTILITIES COMPANY IN:  UTI ST:  TX,LA


-- NY095 -- X211 09/15/93
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Publication:PR Newswire
Date:Sep 15, 1993
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