

[Federal Register: November 17, 2005 (Volume 70, Number 221)]
[Notices]               
[Page 69790-69791]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17no05-100]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-28060]

 
Filings Under the Public Utility Holding Company Act of 1935, as 
Amended (``Act'')

November 9, 2005.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission under provisions of the Act and rules 
promulgated under the Act. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendment(s) is/are available for public 
inspection through the Commission's Branch of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by December 2, 2005, to the Secretary, Securities and Exchange 
Commission, 100 F Street, NE., Washington, DC 20549-9303, and serve a 
copy on the relevant applicant(s) and/or declarant(s) at the 
address(es) specified below. Proof of service (by affidavit or, in the 
case of an attorney at law, by certificate) should be filed with the 
request. Any request for hearing should identify specifically the 
issues of facts or law that are disputed. A person who so requests will 
be notified of any hearing, if ordered, and will receive a copy of any 
notice or order issued in the matter. After December 2, 2005, the 
application(s) and/or declaration(s), as filed or as amended, may be 
granted and/or permitted to become effective.

Entergy Gulf States, Inc. (70-10158)

    Entergy Gulf States, Inc. (``EGSI''), 350 Pine Street, Beaumont, 
Texas, 77701, a wholly-owned public utility subsidiary of Entergy 
Corporation (``Entergy''), a registered holding company under the Act, 
has filed a post-effective amendment to its original application/
declaration (``Amended Application'') under sections 6(a) and 7 of the 
Act and rules 53 and 54 under the Act.

I. Current Order

    By order dated December 29, 2003 (Holding Company Act Release No. 
27786) (``Current Order'') EGSI was authorized, among other things, to 
engage in a program of external financing and related transactions. 
Specifically, EGSI is authorized to issue and sell, or arrange for the 
issuance and sale of, securities of the types set forth below having an 
aggregate value (calculated by principal amount in the case of debt and 
par value or initial offering price in the case of securities other 
than debt) (A) not to exceed $2 billion ($1.06 billion of which has 
been issued): (1) First mortgage bonds, including first mortgage bonds 
of the medium term note series; (2) unsecured long-term debt; and/or 
(3) preferred stock, preference stock and/or, directly or indirectly 
through one or more special purpose subsidiaries, other forms of 
preferred or equity-linked securities; and/or (B) not to exceed $500 
million (all of which remains unissued) tax-exempt bonds, including the 
possible issuance and pledge of up to $560 million (all of which 
remains unissued) first mortgage bonds, including first mortgage bonds 
of the medium term note series, as collateral security for such tax 
exempt bonds (the aggregate principal amount of which collateral 
securities was not included in the $2 billion referenced above).

II. Requested Authority

    The recent hurricanes, Katrina and Rita, caused extensive damage to 
EGSI's transmission and distribution systems and power plants. At its 
peak, Hurricane Rita left 66% of ESGI's customers without service. 
Hurricane Rita took out of service 82% of EGSI's Texas transmission 
lines and 38% of the transmission lines in southwest Louisiana, 54% of 
EGSI's Texas substations and 39% of EGSI's Louisiana substations, and 
12 of its 14 fossil units that operate in the area affected by the 
hurricane. In addition, many thousands of utility poles and wire spans 
and transformers were damaged by Hurricane Rita.
    The economic impact of these hurricanes on EGSI has been two-fold. 
EGSI has incurred significant cost of repairs to its transmission and 
distribution systems, as well as its generation facilities and it is 
still experiencing a shortfall in its cash receipts compared to normal 
levels. At the same time, EGSI continues to have significant cash 
requirements, primarily due to payment obligations under fuel and power 
purchase contracts and storm restoration costs as it endeavors to 
restore service throughout its territory and to maintain the safety and 
security of its operations. EGSI estimates that as of October 4, 2005, 
the total restoration costs for the repair or replacement of its 
electric facilities damaged by Hurricane Rita are in the range of $365 
million to $500 million. With respect to Hurricane Katrina, as of 
October 19, 2005, EGSI estimates the total restoration costs to be in 
the range of $29 million to $42 million.
    EGSI requests approval to enter into arrangements for, and to make 
borrowings with maturities between one and five years under, secured 
credit facilities from one or more banks through February 8, 2006 
(``Secured Bank Debt'').\1\ As indicated above, the Current Order does 
not authorize EGSI to make secured bank borrowings.
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    \1\ The Energy Policy Act of 2005 repealed the Public Utility 
Holding Company Act of 1935, effective February 8, 2006.
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III. Description of Proposed Financing Program

    The proposed Secured Bank Debt (when combined with the currently 
authorized first mortgage bonds, including first mortgage bonds of the 
medium term note series, unsecured long-term debt, and preferred stock, 
preference stock and/or equity interests) will not exceed the $940 
million that remains authorized but unissued under the Current Order's 
original authorization of $2 billion (in each case, exclusive of 
authorization with respect to the issuance of tax-exempt bonds and 
related collateral securities). EGSI proposes to establish bank lines, 
as necessary, providing for the issuance of Secured Bank Debt.
    In connection with the incurrence of Secured Bank Debt, EGSI 
requests

[[Page 69791]]

authority to issue and pledge up to an aggregate principal amount of 
$963.5 million of first mortgage bonds as collateral securities (``Bank 
Collateral Securities''),\2\ which $963.5 million is not included in 
the $940 million referenced above or in the Current Order's authorized 
amount of $560 million of collateral securities related to tax-exempt 
bonds. Loans under these lines (which terminate no later than five 
years from the establishment of the facility) will have maturities of 
at least one year from the date of each borrowing.
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    \2\ This amount of first mortgage bonds is calculated to reflect 
the maximum aggregate principal amount of Secured Bank Debt issuable 
of $940 million, plus 3 month's interest at an assumed rate of 10%.
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    The effective cost of capital on Secured Bank Debt will not exceed 
competitive market rates available at the time of issuance for 
securities having the same or reasonably similar terms and conditions 
issued by similar companies of reasonably comparable credit quality; 
provided in no event will the effective cost of money exceed 500 basis 
points over the London Interbank Offered Rate for the relevant interest 
rate period.
    EGSI (70-10158) proposes to issue Bank Collateral Securities 
pursuant to its Indenture of Mortgage, dated as of September 1, 1926, 
to JPMorgan Chase Bank, N.A. as successor Trustee, as amended and 
supplemented (``Mortgage). The Bank Collateral Securities would be 
issued on the basis of unfunded net property additions and/or 
previously retired bonds, as permitted and authorized by the Mortgage.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6359 Filed 11-16-05; 8:45 am]

BILLING CODE 8010-01-P
