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LOUISIANA PUBLIC SERVICE COMMISSION VOTES TO REAFFIRM DEREGULATED ASSET PLAN

 LOUISIANA PUBLIC SERVICE COMMISSION VOTES TO
 REAFFIRM DEREGULATED ASSET PLAN
 BATON ROUGE, La., Jan. 29 /PRNewswire/ -- Gulf States Utilities Co. (NYSE: GSU) said that the Louisiana Public Service Commission, meeting in regular session Tuesday night (Jan. 28), voted to reaffirm, with modifications, the deregulated asset plan already in place for the River Bend nuclear generating station.
 One change provides that, when the LPSC authorizes off-system sales from the deregulated portion of the plant, revenues above a prescribed level will be divided evenly between ratepayers and shareholders.
 GSU officials said that, although the change will have no impact on current customer rates, it would enable the company to avoid a $128 million write-off that would have been necessary under the previous sharing provision that allocated 40 percent of the incremental revenues to shareholders. Gulf States said the asset deregulation will require the company to increase its deferred taxes, resulting in a $7 million charge to net income in the fourth quarter of 1991.
 In 1987 the LPSC ruled that $1.4 billion in systemwide River Bend costs (about $469 million net of accumulated depreciation and related tax benefits of a Louisiana jurisdictional basis as of Sept. 30, 1991) should be disallowed as imprudently incurred. The deregulated asset plan was established as a way for Gulf States to minimize the financial impact association with the imprudence decision by allowing the company to obtain revenue by selling power from the disallowed portion of the plant.
 The deregulated asset plan was before the LPSC as a result of a Louisiana Supreme Court decision in April of 1991 that upheld the imprudence disallowance and said the LPSC had the authority to approve a deregulated asset plan.
 Also as a result of the Supreme Court decision, the LPSC ordered Gulf States to refund about $24 million, half of it as a credit on Louisiana customer bills in July 1992 and the other half in July 1993.
 The refunds stem from the high court's finding that a district court exceeded its authority in increasing the company's allowed return on equity from 12 to 14 percent.
 Gulf States had proposed that the amount in question be deducted from deferred River Bend revenues that are due to be collected through 1997. The LPSC order provides that, while the principal amount is to be refunded as a credit on bills, the accumulated interest will be used to reduce the total amount that will be collected from ratepayers under the River Bend phase-in plan. Through the end of 1991, the interest total was $10.8 million.
 -0- 1/29/92
 /CONTACT: Susan H. Gilley, 409-839-2846; Sharon Englade, 409-839-2814; or Kim McMurray, 409/839-2890, all of Gulf States Utilities/
 (GSU) CO: Gulf States Utilities Co. ST: Louisiana IN: UTI SU:


JT -- NY046 -- 4730 01/29/92 12:17 EST
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Publication:PR Newswire
Date:Jan 29, 1992
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