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<SEC-DOCUMENT>0000065984-05-000026.txt : 20050113
<SEC-HEADER>0000065984-05-000026.hdr.sgml : 20050113
<ACCEPTANCE-DATETIME>20050113165023
ACCESSION NUMBER:		0000065984-05-000026
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20050113
DATE AS OF CHANGE:		20050113

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENTERGY ARKANSAS INC
		CENTRAL INDEX KEY:			0000007323
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				710005900
		STATE OF INCORPORATION:			AR
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-109453
		FILM NUMBER:		05528598

	BUSINESS ADDRESS:	
		STREET 1:		425 WEST CAPITOL AVE
		STREET 2:		40TH FLOOR
		CITY:			LITTLE ROCK
		STATE:			AR
		ZIP:			72201
		BUSINESS PHONE:		501-377-4000

	MAIL ADDRESS:	
		STREET 1:		P O BOX 551
		CITY:			LITTLE ROCK
		STATE:			AR
		ZIP:			72203

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ARKANSAS POWER & LIGHT CO
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>a00605.htm
<TEXT>
<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT size="2" color="#E8112D">This prospectus supplement and
the accompanying prospectus relate to an effective registration
statement under the Securities Act of 1933, but are not complete
and may be changed. This prospectus supplement and the
accompanying prospectus are not an offer to sell these
securities and are not soliciting an offer to buy these
securities in any state where the offer or sale is not
permitted.</FONT></B>
</TD></TR></TABLE>

<P align="right">
<FONT size="2">Filed pursuant to Rule 424(b)(3)
</FONT>

<DIV align="right">
<FONT size="2">Registration Number 333-109453
</FONT>
</DIV>

<DIV align="center">
<B><FONT size="2" color="#E8112D">SUBJECT TO COMPLETION, DATED
JANUARY 13, 2005</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">PROSPECTUS SUPPLEMENT</FONT></B>

<DIV align="left">
<B><FONT size="2">(To Prospectus dated October 14,
2003)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="5">$175,000,000</FONT></B>

<P align="center">
<B><FONT size="6">Entergy Arkansas, Inc.</FONT></B>

<P align="center">
<B><FONT size="4">FIRST MORTGAGE BONDS,</FONT></B>

<DIV align="center">
<B><FONT size="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
SERIES DUE
FEBRUARY&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">We are offering $175&nbsp;million of our First
Mortgage
Bonds, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%&nbsp;Series
due
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
We will pay interest on the bonds on February&nbsp;1 and
August&nbsp;1 of each year. The first interest payment on the
bonds will be made on August&nbsp;1, 2005. The bonds will be
redeemable at our option, in whole or in part, (i)&nbsp;at any
time prior to
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
the make-whole redemption price described in this prospectus
supplement, and (ii)&nbsp;at any time on or after
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prior
to maturity of the bonds, at a redemption price equal to 100% of
the principal amount of the bonds being redeemed, plus, in each
case, accrued and unpaid interest thereon to the redemption
date. The bonds will be issued in denominations of $1,000 and
integral multiples thereof.
</FONT>

<P align="left">
<FONT size="2">As described in the accompanying prospectus, the
bonds are a series of first mortgage bonds issued under our
mortgage, which has the benefit of a first mortgage lien on
substantially all of our property.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B>Investing in the bonds involves risks. See &#147;Risk
Factors&#148; beginning on page&nbsp;S-3.</B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="2">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of these securities or determined if this prospectus supplement
or the accompanying prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.</FONT></B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underwriting</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Proceeds to</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Discounts and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Entergy Arkansas</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Public</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Commissions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(before expenses)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Per bond
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">The price to public will also include any
interest that has accrued on the bonds since their issue date if
delivered after that date.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">The underwriters expect to deliver the bonds to
purchasers through The Depository Trust Company on or about
January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<I><FONT size="2">Joint Bookrunners</FONT></I>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT size="4">Citigroup</FONT></B></TD>
    <TD align="right"><B><FONT size="4">Morgan Stanley</FONT></B></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="4"> BNP PARIBAS</FONT></B>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="22%"></TD>
    <TD width="78%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="4"> JPMorgan</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="44%"></TD>
    <TD width="56%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="4"> RBS Greenwich Capital</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="66%"></TD>
    <TD width="34%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B><FONT size="4"> Stephens Inc.</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005
</FONT>
<!-- PAGEBREAK -->

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should rely only on the information contained
or incorporated by reference in this prospectus supplement or
the accompanying prospectus. We have not authorized anyone else
to provide you with different information. You should not assume
that the information contained in this prospectus supplement,
the accompanying prospectus or the documents incorporated by
reference is accurate as of any date other than as of the dates
of these documents or the dates these documents were filed with
the SEC. We are not making an offer of the bonds in any state
where the offer is not permitted.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<DIV>&nbsp;</DIV>

<!-- link1 "TABLE OF CONTENTS" -->

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<P align="center">
<B><FONT size="2">Prospectus Supplement</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Risk Factors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Recent Development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forward-Looking Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Where You Can Find More Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selected Financial Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Use of Proceeds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Description of the Bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Underwriting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Experts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legality
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">S-11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">Prospectus</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="93%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Risk Factors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forward-Looking Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">About This Prospectus
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Entergy Arkansas, Inc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ratios of Earnings to Fixed Charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Where You Can Find More Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Use of Proceeds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Description of the First Mortgage Bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Description of Debt Securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Book-Entry Only Securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Experts and Legality
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Plan of Distribution
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">S-2
</FONT>

<!-- PAGEBREAK -->

<!-- link1 "RISK FACTORS" -->

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">In considering whether to purchase the bonds
being offered, you should carefully consider the information we
have included or incorporated by reference in this prospectus
supplement and the accompanying prospectus. In particular, you
should carefully consider the risk factors described below, as
well as the factors listed in &#147;Forward-Looking
Information.&#148; These risk factors update and restate the
risk factors contained in the accompanying prospectus and
therefore are intended to supersede those risk
factors.</FONT></I>

<P align="left">
<B><FONT size="2">Ownership of nuclear generating facilities
creates business, financial and waste disposal risks.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We own Units&nbsp;1 and 2 of the Arkansas Nuclear
One Steam Electric Generation Station, a nuclear powered
generating station with a total net generating capacity of
approximately 1800&nbsp;MW. As a result, we are subject to the
risks arising from owning and operating a nuclear generating
facility. These include the risks arising from the use, storage,
handling and disposal of high-level and low-level radioactive
materials, limitations on the amounts and types of insurance
commercially available in respect of losses that might arise in
connection with nuclear operations, and uncertainties with
respect to the technological and financial aspects of
decommissioning nuclear plants at the end of their licensed
lives (our operating license for Unit&nbsp;1 expires in 2034,
and our operating license for Unit&nbsp;2 expires in 2018).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, concerns are being expressed in
public forums about the safety of nuclear generation units and
nuclear fuel. These concerns have led to various proposals to
federal authorities for legislative and regulatory changes that
could lead to the shut-down of nuclear units, denial of life
extension applications, unavailability of sites for spent
nuclear fuel disposal, or other adverse effects on owning and
operating nuclear generation facilities. If any of the proposals
relating to legislative and regulatory changes become effective,
it could have a material adverse effect on our results of
operations, financial condition and liquidity.
</FONT>

<P align="left">
<B><FONT size="2">An adverse decision by the Federal Energy
Regulatory Commission in the proceeding relating to the System
Agreement among us, Entergy Gulf States, Inc., Entergy
Louisiana, Inc., Entergy Mississippi, Inc. and Entergy New
Orleans, Inc. could result in a material increase in production
costs allocated to&nbsp;us.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rates that we charge for our services are an
important item affecting our financial position, results of
operation and liquidity. We are heavily regulated, and the
regulation of the rates that we charge our customers is
determined, in large part, outside our control by governmental
organizations, including the Arkansas Public Service Commission
(&#147;APSC&#148;) and the Federal Energy Regulatory Commission
(&#147;FERC&#148;). We are routinely involved in proceedings,
including general rate cases and proceedings relating to various
other aspects of our rates. Our fuel costs are also recovered
from customers on a delayed basis, subject to regulatory
scrutiny. This regulatory risk represents our largest potential
exposure to price changes in the commodity markets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have historically engaged, with Entergy Gulf
States, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc.
and Entergy New Orleans, Inc. (collectively, the &#147;System
Operating Companies&#148;), in the coordinated planning,
construction, and operation of generating and transmission
facilities under the terms of an agreement called the System
Agreement that has been approved by the FERC. Litigation
involving the System Agreement is being pursued by the Louisiana
Public Service Commission (the &#147;LPSC&#148;) at both the
FERC and before itself. These proceedings include challenges to
the allocation of costs as defined by the System Agreement,
raise questions of imprudence by the System Operating Companies
in their execution of the System Agreement, and seek support for
local regulatory authority over System Agreement issues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In February 2004 a FERC administrative law judge
(the &#147;ALJ&#148;) issued an initial decision in the
proceeding. The initial decision rendered some issues in favor
of the relief sought by the LPSC and rendered some issues
against the relief sought by the LPSC. The ALJ&#146;s initial
decision would reallocate production costs of those System
Operating Companies whose percentage of the average production
costs of the System Operating Companies are outside a bandwidth.
This would be accomplished by payments from System Operating
Companies whose production costs are below the average
production costs of the System Operating Companies to System
Operating Companies whose production costs are above the average
production costs of the System Operating Companies. Several
parties, including us and the FERC staff, filed briefs on
exceptions in response to
</FONT>

<P align="center"><FONT size="2">S-3
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">the ALJ&#146;s initial decision. FERC does not
have a deadline by which it must decide the proceeding. We
expect a FERC decision in the first half of 2005.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If FERC grants the relief requested by the LPSC,
the relief may result in a material increase in production costs
allocated to us. An assessment of the potential effects of the
ALJ&#146;s initial decision requires assumptions regarding the
future total production costs of each of the System Operating
Companies, which assumptions include the mix of solid fuel and
gas-fired generation available to each System Operating Company
and the costs of natural gas and purchased power. We are the
least dependent upon gas-fired generation of the System
Operating Companies. Therefore, increases in natural gas prices
likely will increase the amount by which our total production
costs are below the average production costs of the System
Operating Companies. Considerable uncertainty exists regarding
future gas prices. Annual average gas prices have varied
significantly over recent years, ranging from $1.92/mmBtu to
$5.48/mmBtu for the 1994-2003 period, and averaging $2.99/mmBtu
during the ten-year period 1994-2003 and $3.77/mmBtu during the
five-year period 1999-2003. Recent market conditions have
resulted in gas prices that have averaged $5.58/MMBtu for the
twelve months ended September&nbsp;30, 2004. Based upon analyses
considering the effect on future production costs if the FERC
adopts the ALJ&#146;s initial decision and assuming annual
average gas prices range from $6.39/mmBtu in 2005 to $4.97/mmBtu
by 2009, the range of increases in our allocation of potential
annual production costs could be $154&nbsp;million to
$281&nbsp;million with a potential average annual cost increase
of $215&nbsp;million for 2005 to 2009.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;10, 2004, the APSC issued an
order of investigation in which it discussed the negative effect
that implementation of the FERC ALJ&#146;s initial decision
would have on our customers. The APSC order establishes an
investigation into whether our continued participation in the
System Agreement is in the best interest of our customers, and
whether there are steps that we or the APSC can take &#147;to
protect [our customers] from future attempts by Louisiana, or
any other Entergy retail regulator to shift its high costs to
Arkansas.&#148; We filed our initial testimony in response to
the APSC order of investigation. The testimony emphasizes that
the ALJ&#146;s initial decision is not a final order by the
FERC; briefly discusses some of the aspects of the initial
decision that are included in our exceptions filed with FERC;
emphasizes that we will seek to reverse the production
cost-related portions of the initial decision; and states that
we believe that it is premature, before FERC makes a decision,
for us to determine whether our continued participation in the
System Agreement is appropriate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that any increases in the allocation
of production costs to us resulting from a FERC decision should
result in similar rate changes for our retail customers, and in
light of current gas prices discussed above, such increases
could be significant. The timing of recovery of these costs in
our rates could be the subject of additional proceedings at the
APSC and elsewhere, and a delay in full recovery of any
increased allocation of production costs could result in
additional financing requirements for us. Although the outcome
and timing of the FERC, APSC and other proceedings cannot be
predicted at this time, we do not believe that the ultimate
resolution of these proceedings will have a material effect on
our financial condition.
</FONT>

<!-- link1 "RECENT DEVELOPMENT" -->

<P align="center">
<B><FONT size="2">RECENT DEVELOPMENT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;17, 2004, the FERC issued an
order initiating a hearing and investigation concerning the
justness and reasonableness of the Available Flowgate Capacity
(&#147;AFC&#148;) methodology, which methodology is used to
evaluate short term transmission service requests under the
System Operating Companies&#146; open access transmission
tariff, and establishing a refund effective date. In its order,
the FERC indicated that although it &#147;appreciates that
Entergy is attempting to explore ways to improve transmission
access on its system,&#148; it believed that an investigation
was warranted to gather more evidence in light of the concerns
raised by certain transmission customers and certain issues
raised in a FERC audit report finding errors and problems with
the predecessor methodology used by Entergy Services, Inc.
(&#147;Entergy Services&#148;) for evaluating short term
transmission requests, the Generator Operating Limits
(&#147;GOL&#148;) methodology. The FERC order indicates that the
investigation will include an examination of (i)&nbsp;Entergy
Services&#146; implementation of the AFC program,
(ii)&nbsp;whether Entergy Services&#146; implementation has
complied with prior FERC orders on the AFC program, and
(iii)&nbsp;whether Entergy Services&#146; provision of access to
its transmission system was just, reasonable and not unduly
discriminatory. Entergy Services has submitted an Emergency
Interim Request for Rehearing requesting the FERC to defer the
hearing process and instead proceed initially with an
independent audit of the AFC program
</FONT>

<P align="center"><FONT size="2">S-4
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">and the expansion of the current process
involving other market participants to address a broader range
of issues. Entergy Services believes that this type of approach
is a more efficient and effective mechanism for evaluating the
AFC program. Following the completion of the independent audit
and process involving other market participants, the FERC could
determine whether other procedural steps are necessary. Entergy
Services requested that the FERC rule on the Emergency Interim
Request for Rehearing by January&nbsp;19, 2005. Entergy Services
believes that it has complied with the provisions of its open
access transmission tariff, including the provisions addressing
the implementation of AFCs; however, the effect of the
proceeding at the FERC on the System Operating Companies,
including us, cannot be predicted at this time.
</FONT>
</DIV>

<!-- link1 "FORWARD-LOOKING INFORMATION" -->

<P align="center">
<B><FONT size="2">FORWARD-LOOKING INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, we make statements concerning
our expectations, beliefs, plans, objectives, goals, strategies,
and future events or performance. Those statements are
&#147;forward-looking statements&#148; within the meaning of the
Private Securities Litigation Reform Act of 1995. Although we
believe that these forward-looking statements and the underlying
assumptions are reasonable, we cannot provide assurance that
they will prove correct. Except to the extent required by the
federal securities laws, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Forward-looking statements involve a number of
risks and uncertainties, and there are factors that could cause
actual results to differ materially from those expressed or
implied in the statements. Some of those factors (in addition to
others described elsewhere in this prospectus supplement and in
subsequent securities filings) include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">resolution of pending and future rate cases and
    negotiations and other regulatory decisions, including those
    related to the System Agreement and our utility supply plan;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to reduce our operation and
    maintenance costs, including the uncertainty of negotiations
    with unions to agree to such reductions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the performance of our generating plants, and
    particularly the capacity factor at our nuclear generating
    facilities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the prices and availability of power that we must
    purchase for our utility customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in the financial markets, particularly
    those affecting the availability of capital and our ability to
    refinance existing debt and to fund investments;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">actions of rating agencies, including changes in
    the ratings of debt and preferred stock and changes in the
    rating agencies&#146; criteria;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in inflation and interest rates;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">volatility and changes in markets for
    electricity, natural gas, uranium, and other energy-related
    commodities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in utility regulation, including the
    beginning or end of retail and wholesale competition, the
    ability to recover net utility assets and other potential
    stranded costs, and the establishment of a regional transmission
    organization that includes our service territory and the
    establishment of market power criteria by the FERC;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">uncertainty regarding the establishment of
    permanent sites for spent nuclear fuel storage and disposal;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in regulation of nuclear generating
    facilities and nuclear materials and fuel, including possible
    shutdown of nuclear generating facilities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">resolution of any pending or future applications
    for license extensions for our nuclear generating facilities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in law resulting from proposed energy
    legislation;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">S-5
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in environmental, tax, and other laws,
    including requirements for reduced emissions of sulfur,
    nitrogen, carbon, mercury, and other substances;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the economic climate, and particularly growth in
    our service territory;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">variations in weather and other natural disasters;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">advances in technology;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the potential effects of threatened or actual
    terrorism and war;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the potential impact of changes in federal, state
    and local tax laws;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the effects of litigation and government
    investigations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in accounting standards, corporate
    governance and securities law requirements; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to attract and retain talented
    management and directors.
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SEC allows us to &#147;incorporate by
reference&#148; the information filed by us with the SEC, which
means that we can refer you to important information without
restating it in this prospectus supplement and the accompanying
prospectus. The information incorporated by reference is
considered to be part of this prospectus supplement and the
accompanying prospectus and should be read with the same care.
We incorporate by reference our Annual Report on Form&nbsp;10-K
for the year ended December&nbsp;31, 2003, our Quarterly Reports
on Form&nbsp;10-Q for the quarters ended March&nbsp;31, 2004,
June&nbsp;30, 2004 and September&nbsp;30, 2004, our Current
Reports on Form&nbsp;8-K dated February&nbsp;20, 2004 (filed
February&nbsp;23, 2004), March&nbsp;11, 2004 (filed
April&nbsp;13, 2004), and October&nbsp;5, 2004 (filed
October&nbsp;12, 2004) and any future filings that we make with
the SEC under the Securities Exchange Act of 1934 if the filings
are made prior to the time that all of the bonds are sold in
this offering. You can also find more information about us from
the sources described under &#147;Where You Can Find More
Information&#148; in the accompanying prospectus.
</FONT>

<P align="center"><FONT size="2">S-6
</FONT>

<!-- PAGEBREAK -->

<!-- link1 "SELECTED FINANCIAL INFORMATION" -->

<P align="center">
<B><FONT size="2">SELECTED FINANCIAL INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should read our selected financial
information set forth below in conjunction with the financial
statements and other financial information contained in the
documents incorporated by reference.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">For the twelve months ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">December 31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">September 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Unaudited,</FONT></B></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dollars in</FONT></B></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">(Dollars in Thousands)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income Statement Data:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,612,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,589,670</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,561,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,776,776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,762,635</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">254,474</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297,189</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">302,209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">379,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">310,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest Expense (net)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,511</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">105,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,812</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">112,504</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">135,643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">178,185</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137,047</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ratio of Earnings to Fixed Charges(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.04</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">As of September&nbsp;30, 2004</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Unaudited,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dollars in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance Sheet Data:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Mortgage Bonds(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other Long-Term Debt(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">499,916</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Shareholders&#146; Equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Preferred Stock (without sinking fund)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common Stock and Paid-in-Capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">591,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Retained Earnings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">744,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Shareholders&#146; Equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,452,837</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Capitalization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,792,753</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">As defined in Regulation S-K of the SEC,
    &#147;Earnings&#148; represents the aggregate of (a)&nbsp;income
    before the cumulative effect of a change in accounting,
    (b)&nbsp;taxes based on income, (c)&nbsp;investment tax credit
    adjustment&nbsp;&#151; net and (d)&nbsp;fixed charges.
    &#147;Fixed Charges&#148; include interest (whether expensed or
    capitalized), related amortization and interest applicable to
    rentals charged to operating expenses.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes current maturities of First Mortgage
    Bonds of $100&nbsp;million. Does not include $60&nbsp;million of
    First Mortgage Bonds, 6.38% Series due November&nbsp;1, 2034
    issued by us on October&nbsp;12, 2004.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes (a)&nbsp;$47&nbsp;million of pollution
    control revenue bonds that are subject to mandatory tender in
    September 2005, and (b)&nbsp;$60&nbsp;million of 8 1/2% Junior
    Subordinated Deferrable Interest Debentures, Series&nbsp;A, due
    September&nbsp;30, 2045, which we redeemed on November&nbsp;12,
    2004. In addition, as of September&nbsp;30, 2004, we had
    approximately $97&nbsp;million of obligations under capital
    leases (approximately $59 of which are current liabilities).
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We anticipate our net proceeds from the sale of
the bonds will be approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
after deducting discounts and commissions and estimated offering
expenses of approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
We will use the net proceeds we receive from the issuance and
sale of the bonds, together with other available corporate
funds, to redeem prior to maturity $175&nbsp;million in
principal amount of our First Mortgage Bonds, 7% Series due
October&nbsp;1, 2023, at a redemption price of 102.54% of the
principal amount thereof plus accrued and unpaid
</FONT>

<P align="center"><FONT size="2">S-7
</FONT>
<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">interest thereon to the redemption date. Pending
the application of the net proceeds, we will invest them in
short term, highly liquid, high-rated money market instruments
and/or the Entergy System Money Pool.
</FONT>
</DIV>

<!-- link1 "DESCRIPTION OF THE BONDS" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF THE BONDS</FONT></B>

<P align="left">
<B><FONT size="2">Interest, Maturity and Payment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are offering $175 million of First Mortgage
Bonds, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
Series due
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
We will pay interest on the bonds on February&nbsp;1 and
August&nbsp;1 of each year, beginning on August&nbsp;1, 2005. As
long as the bonds are registered in the name of DTC or its
nominee, the record date for interest payable on any interest
payment date shall be the close of business on the Business Day
immediately preceding such interest payment date. Interest
starts to accrue from the date that the bonds are issued. The
bonds will be issued on the basis of retired bond credits. As of
November&nbsp;30, 2004, approximately $77&nbsp;million of first
mortgage bonds could have been issued on the basis of net
property additions, and approximately $984&nbsp;million of first
mortgage bonds could have been issued on the basis of retired
bond credits. We have agreed to pay interest on any overdue
principal and, if such payment is enforceable under applicable
law, on any overdue installment of interest on the bonds at a
rate of 6% per annum to holders of record at the close of
business on the Business Day immediately preceding our payment
of such interest.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest on the bonds will be computed on the
basis of a 360-day year of twelve 30-day months. If any interest
payment date or the maturity date falls on a day that is not a
Business Day, the payment due on that interest payment date or
the maturity date will be made on the next Business Day, and
without any interest or other payment in respect of such delay.
</FONT>

<P align="left">
<B><FONT size="2">Form and Denomination</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The bonds will be issued in denominations of
$1,000 and integral multiples thereof. The bonds will be
represented by a global certificate without coupons registered
in the name of a nominee of DTC. As long as the bonds are
registered in the name of DTC or its nominee, we will pay
principal, any premium, and interest due on the bonds to DTC.
DTC will then make payment to its participants for disbursement
to the beneficial owners of the bonds as described in the
accompanying prospectus under the heading &#147;Book-Entry Only
Securities.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Optional Redemption</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may redeem the bonds, in whole or in part, at
our option, on not less than 30&nbsp;days&#146; nor more than
60&nbsp;days&#146; notice, (i)&nbsp;at any time prior to
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
at a redemption price equal to the greater of (a)&nbsp;100% of
the principal amount of the bonds being redeemed and (b)&nbsp;as
determined by the Independent Investment Banker, the sum of
(x)&nbsp;the present value of the payment on
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the principal amount of the bonds being redeemed plus
(y)&nbsp;the sum of the present values of the remaining
scheduled payments of interest on the bonds being redeemed to
February&nbsp;1, &nbsp;(excluding the portion of any such
interest accrued to the redemption date), discounted (for
purposes of determining such present values) to the redemption
date on a semi-annual basis (assuming a 360-day year consisting
of twelve 30-day months) at the Adjusted Treasury Rate
plus &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%,
and (ii)&nbsp;at any time on or after
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
prior to maturity of the bonds, at a redemption price equal to
100% of the principal amount of the bonds being redeemed, plus,
in each case, accrued and unpaid interest thereon to the
redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If, at the time notice of redemption is given,
the redemption monies are not held by the corporate trustee, the
redemption may be made subject to receipt of such monies before
the date fixed for redemption, and such notice shall be of no
effect unless such monies are so received.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may apply cash we deposit under any provision
of the mortgage, with certain exceptions, to the redemption or
purchase, including the purchase from us, of first mortgage
bonds of any series including the bonds offered by this
prospectus supplement.
</FONT>

<P align="center"><FONT size="2">S-8
</FONT>

<!-- PAGEBREAK -->

<P align="left">
<B><FONT size="2">Certain Definitions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Adjusted Treasury Rate&#148; means, with
respect to any redemption date:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;the yield, under the heading which
    represents the average for the immediately preceding week,
    appearing in the most recently published statistical release
    designated &#147;H.15(519)&#148; or any successor publication
    which is published weekly by the Board of Governors of the
    Federal Reserve System and which establishes yields on actively
    traded United States Treasury securities adjusted to constant
    maturity under the caption &#147;Treasury Constant
    Maturities,&#148; for the maturity corresponding to the
    Comparable Treasury Issue (if no maturity is within three months
    before or after
    February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    yields for the two published maturities most closely
    corresponding to the Comparable Treasury Issue shall be
    determined and the Adjusted Treasury Rate shall be interpolated
    or extrapolated from such yields on a straight line basis
    rounding to the nearest month); or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;if such release (or any successor
    release) is not published during the week preceding the
    calculation date for the Adjusted Treasury Rate or does not
    contain such yields, the rate per annum equal to the semi-annual
    equivalent yield to maturity of the Comparable Treasury Issue,
    calculated using a price for the Comparable Treasury Issue
    (expressed as a percentage of its principal amount) equal to the
    Comparable Treasury Price for such redemption date.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Adjusted Treasury Rate shall be calculated on
the third Business Day preceding the redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Business Day&#148; means any day other than
a Saturday or a Sunday or a day on which banking institutions in
The City of New York are authorized or required by law or
executive order to remain closed or a day on which the corporate
trust office of the corporate trustee is closed for business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Comparable Treasury Issue&#148; means the
United States Treasury security selected by the Independent
Investment Banker as having a maturity comparable to
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that
would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to
February&nbsp;1, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Comparable Treasury Price&#148; means, with
respect to any redemption date, (1)&nbsp;the average of five
Reference Treasury Dealer Quotations for such redemption date
after excluding the highest and lowest such Reference Treasury
Dealer Quotations or (2)&nbsp;if the Independent Investment
Banker obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such Reference Treasury Dealer
Quotations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Independent Investment Banker&#148; means
one of the Reference Treasury Dealers that we appoint to act as
the Independent Investment Banker from time to time or, if any
of such firms is unwilling or unable to select the Comparable
Treasury Issue, an independent investment banking institution of
national standing appointed by us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Reference Treasury Dealer&#148; means
(1)&nbsp;Citigroup Global Markets Inc. and Morgan Stanley &#38;
Co. Incorporated and their respective successors; provided,
however, that if any of the foregoing shall cease to be a
primary U.S.&nbsp;Government securities dealer in New York City
(a &#147;Primary Treasury Dealer&#148;), we will substitute
therefor another Primary Treasury Dealer, and (2)&nbsp;any other
Primary Treasury Dealer selected by the Independent Investment
Banker after consultation with us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Reference Treasury Dealer Quotations&#148;
means, with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the
Independent Investment Banker at 5:00 p.m. on the third Business
Day preceding such redemption date.
</FONT>

<P align="left">
<B><FONT size="2">Dividend Covenant</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will covenant that, so long as any bonds
remain outstanding, we will not pay any cash dividends on common
stock or repurchase common stock after December&nbsp;31, 2004
if, after giving effect to such dividends or purchases, the
aggregate amount of such dividends or purchases after
December&nbsp;31, 2004 (other than dividends we have declared on
or before December&nbsp;31, 2004) exceeds credits to retained
earnings after December&nbsp;31, 2004
</FONT>

<P align="center"><FONT size="2">S-9
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">plus $350&nbsp;million plus such additional
amounts as the SEC shall approve under the Public Utility
Holding Company Act of&nbsp;1935.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Sinking or Improvement Fund</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The bonds are not subject to redemption under any
sinking or improvement fund.
</FONT>

<P align="left">
<B><FONT size="2">Maintenance and Replacement Fund</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The bonds will not be entitled to the benefits of
a maintenance and replacement fund. However, so long as any
series of first mortgage bonds created prior to March&nbsp;1,
1996 is outstanding, we will be required to comply with the
maintenance and replacement fund requirements described under
the heading &#147;Description of the First Mortgage
Bonds&nbsp;&#151; Maintenance and Replacement Fund&#148; in the
accompanying prospectus.
</FONT>

<P align="left">
<B><FONT size="2">Additional Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For additional information about the bonds, see
&#147;Description of the First Mortgage Bonds&#148; in the
accompanying prospectus, including:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(1)&nbsp;additional information about the terms
of the bonds, including security,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(2)&nbsp;general information about our mortgage
and the trustees,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(3)&nbsp;a description of certain restrictions
contained in our mortgage,
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(4)&nbsp;a description of events of default under
our mortgage, and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(5)&nbsp;a description of reservations of rights
to amend certain provisions of our mortgage without your consent.
</FONT>

<!-- link1 "UNDERWRITING" -->

<P align="center">
<B><FONT size="2">UNDERWRITING</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the terms and conditions set forth in the
underwriting agreement, dated the date of this prospectus
supplement, we have agreed to sell each of the underwriters
named below, and each of the underwriters has severally agreed
to purchase, the principal amounts of bonds set forth opposite
its name below:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Principal</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Bonds</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Citigroup Global Markets Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Morgan Stanley &#38; Co. Incorporated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">BNP Paribas Securities Corp
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Greenwich Capital Markets, Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">J.P. Morgan Securities Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stephens Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the terms and conditions of the
underwriting agreement, the underwriters have committed, subject
to the terms and conditions set forth therein, to take and pay
for all of the bonds if any are taken, provided, that under
certain circumstances involving a default of an underwriter,
less than all of the bonds may be purchased.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters have advised us that they
propose to offer all or part of the bonds directly to purchasers
at the price to public set forth on the cover page of this
prospectus supplement and to certain securities dealers at such
price less a concession not in excess
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the principal amount of
the bonds. The underwriters may allow, and such dealers may
reallow to certain brokers and dealers, a concession not in
excess of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the principal
amount of the bonds. After the bonds are released for sale to
the public, the price to public and other selling terms may from
time to time be varied by the underwriters.
</FONT>

<P align="center"><FONT size="2">S-10
</FONT>
<!-- PAGEBREAK -->

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have agreed to indemnify the underwriters
against certain liabilities, including liabilities under the
Securities Act of 1933.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is presently no trading market for the
bonds and there is no assurance that a market will develop since
we do not intend to apply for listing of the bonds on a national
securities exchange. Although they are under no obligation to do
so, the underwriters presently intend to act as market makers
for the bonds in the secondary trading market, but may
discontinue such market-making at any time without notice. No
assurance can be given as to the liquidity of the trading market
for the bonds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to facilitate the offering of the bonds,
the underwriters may engage in transactions that stabilize,
maintain or otherwise affect the price of the bonds.
Specifically, the underwriters may overallot in connection with
the offering, creating a short position in the bonds for their
own accounts. In addition, to cover overallotments or to
stabilize the price of the bonds, the underwriters may bid for,
and purchase, the bonds in the open market. Finally, the
underwriters may reclaim selling concessions allowed to a dealer
for distributing the bonds in the offering, if they repurchase
previously distributed bonds in transactions to cover syndicate
short positions, in stabilizing transactions or otherwise. Any
of these activities may stabilize or maintain the market price
of the bonds above independent market levels. The underwriters
are not required to engage in these activities and may end any
of these activities at any time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain underwriters or their affiliates may
engage, or have engaged in various general financing and banking
transactions from time to time with us or our affiliates.
Affiliates of certain of the underwriters are lenders under
certain Entergy System credit facilities.
</FONT>

<!-- link1 "EXPERTS" -->

<P align="center">
<B><FONT size="2">EXPERTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The financial statements and the related
financial statement schedule incorporated in this prospectus
supplement and the accompanying prospectus by reference from our
Annual Report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2003, have been audited by Deloitte&nbsp;&#38;
Touche&nbsp;LLP, an independent registered public accounting
firm, as stated in their reports, which are incorporated herein
by reference (which reports express an unqualified opinion and
include an explanatory paragraph referring to the change in 2003
in the method of accounting for asset retirement obligations and
for consolidation of variable interest entities), and have been
so incorporated in reliance upon the reports of such firm given
upon their authority as experts in accounting and auditing.
</FONT>

<!-- link1 "LEGALITY" -->

<P align="center">
<B><FONT size="2">LEGALITY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the securities will be passed
upon for us by Dawn A. Abuso, Senior Counsel&nbsp;&#151;
Corporate and Securities, of Entergy Services, Inc., New
Orleans, Louisiana, Friday, Eldredge &#38; Clark, LLP, Little
Rock, Arkansas, and Thelen Reid &#38; Priest LLP, New York, New
York. The validity of the securities will be passed upon for the
underwriters by Pillsbury Winthrop LLP, New York, New York. All
legal matters pertaining to our organization, titles to
property, franchises and the lien of the mortgage and all
matters pertaining to Arkansas, Missouri, Tennessee and Wyoming
law will be passed upon only by Friday, Eldredge &#38; Clark,
LLP.
</FONT>

<P align="center"><FONT size="2">S-11
</FONT>
<!-- PAGEBREAK -->

<DIV align="left">
<I><U><FONT size="2">PROSPECTUS</FONT></U></I>
</DIV>

<P align="center">
<B><FONT size="4">$600,000,000</FONT></B>

<P align="center">
<B><FONT size="4">First Mortgage Bonds</FONT></B>

<DIV align="center">
<B><FONT size="4">Debt Securities</FONT></B>
</DIV>

<P align="center">
<B><FONT size="5">ENTERGY ARKANSAS, INC.</FONT></B>

<DIV align="center">
<B>425 West Capitol Avenue</B>
</DIV>

<DIV align="center">
<B>Little Rock, Arkansas 72201</B>
</DIV>

<DIV align="center">
<B>(501)&nbsp;377-4000</B>
</DIV>

<P align="left">
<B><FONT size="2">Entergy Arkansas&nbsp;&#151;</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">May periodically offer its First Mortgage Bonds
    and/or its Debt Securities in one or more series; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will determine the price and other terms of each
    series of securities when sold, including whether any series
    will be subject to redemption prior to maturity.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">The First Mortgage Bonds&nbsp;&#151;</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will be secured by a mortgage that constitutes a
    first mortgage lien on substantially all of our property; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will not be listed on a national securities
    exchange or the Nasdaq Stock Market unless otherwise indicated
    in the accompanying prospectus supplement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">The Debt Securities&nbsp;&#151;</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will be unsecured and will rank equally with all
    of our other unsecured and unsubordinated debt;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will be effectively subordinated to all of our
    secured debt, including our First Mortgage Bonds, as to the
    collateral pledged to support our secured debt; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will not be listed on a national securities
    exchange or the Nasdaq Stock Market unless otherwise indicated
    in the accompanying prospectus supplement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Securityholders&nbsp;&#151;</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Will receive interest payments in the amounts and
    on the dates specified in the accompanying prospectus supplement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This prospectus may be used to offer and sell
series of securities only if accompanied by the prospectus
supplement for that series. We will provide the specific terms
of these securities, including their offering prices, interest
rates and maturities, in supplements to this prospectus. The
supplements may also add, update or change information in this
prospectus. You should read this prospectus and any supplements
carefully before you invest.</FONT></I>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Investing in the securities being offered
hereby involves risks. See &#147;Risk Factors&#148; beginning on
page 2.</FONT></B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Neither the Securities and Exchange
Commission nor any state securities commission has approved or
disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a
criminal offense.</FONT></I></B>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may offer these securities directly or through
underwriters, agents or dealers. Each prospectus supplement will
provide the terms of the plan of distribution relating to each
series of securities.
</FONT>

<P align="center">
<B><FONT size="2">October&nbsp;14, 2003</FONT></B>

<!-- PAGEBREAK -->

<!-- TOC -->
<!-- /TOC -->

<!-- link1 "RISK FACTORS" -->

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">In considering whether to purchase the
securities being offered, you should carefully consider the
information we have included or incorporated by reference in
this prospectus. In particular, you should carefully consider
the risk factors described below, as well as the factors listed
in &#147;Forward Looking Information&#148; immediately following
the risk factors.</FONT></I>

<P align="left">
<B><FONT size="2">Ownership of a nuclear generating facility
creates business, financial and waste disposal risks.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We own Units 1 and 2 of the Arkansas Nuclear One
Steam Electric Generation Station, a nuclear powered generating
station with a total net generating capacity of approximately
1,800 MW. As a result, we are subject to the risks arising from
owning and operating a nuclear generating facility. These
include the risks arising from the use, storage, handling and
disposal of high-level and low-level radioactive materials,
limitations on the amounts and types of insurance commercially
available in respect of losses that might arise in connection
with nuclear operations, and uncertainties with respect to the
technological and financial aspects of decommissioning nuclear
plants at the end of their licensed lives (our operating license
for Unit 1 expires in 2034, and our operating license for Unit 2
expires in 2018).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, concerns are being expressed in
public forums about the safety of nuclear generation units and
nuclear fuel. These concerns have led to various proposals to
federal authorities for legislative and regulatory changes that
could lead to the shut down of nuclear units, denial of life
extension applications, unavailability of sites for spent
nuclear fuel disposal, or other adverse effects on owning and
operating nuclear generation facilities. If any of the proposals
relating to legislative and regulatory changes become effective,
it could have a material adverse effect on our results of
operations or financial condition.
</FONT>

<P align="left">
<B><FONT size="2">An adverse decision by the Federal Energy
Regulatory Commission in the proceeding relating to the System
Agreement among us, Entergy Gulf States, Inc., Entergy
Louisiana, Inc., Entergy Mississippi, Inc. and Entergy New
Orleans, Inc. could result in a material increase in production
costs allocated to us.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rates that we charge for our services are an
important item affecting our financial position, results of
operation and liquidity. We are heavily regulated, and the
regulation of the rates that we charge our customers is
determined, in large part, outside our control by governmental
organizations, including the Arkansas Public Service Commission
(&#147;APSC&#148;) and the Federal Energy Regulatory Commission
(&#147;FERC&#148;). We are routinely involved in proceedings,
including general rate cases and proceedings relating to various
other aspects of our rates. Our fuel costs are also recovered
from customers on a delayed basis, subject to regulatory
scrutiny. This regulatory risk represents our largest potential
exposure to price changes in the commodity markets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have historically engaged, with Entergy Gulf
States, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc.
and Entergy New Orleans, Inc. (&#147;ENO&#148;) (collectively,
the &#147;System Operating Companies&#148;), in the coordinated
planning, construction and operation of generating and
transmission facilities under the terms of an agreement called
the System Agreement. The Louisiana Public Service Commission
(&#147;LPSC&#148;) and the Council of the City of New Orleans
(&#147;CNO&#148;) commenced a proceeding in 2001 at the FERC
that requests amendments to the System Agreement, particularly
in the area of production cost equalization. The LPSC and the
CNO also allege that certain provisions of the System Agreement
increase costs paid by the ratepayers in their jurisdictions.
Entergy Corporation companies, including the System Operating
Companies, filed a response to the complaint in July 2001
denying the allegations of the LPSC and the CNO. The APSC and
the Mississippi Public Service Commission also filed responses
opposing the relief sought by the LPSC and the CNO.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In their complaint, the LPSC and the CNO allege
that our annual production costs over the period 2002 to 2007
will be $130&nbsp;million to $278 million below the average
production costs for the System Operating Companies. This range
of results is a function of assumptions regarding such things as
future natural gas prices, the future market price of
electricity, and other factors. In February 2002, the FERC set
the matter for hearing and established a refund effective period
consisting of the 15&nbsp;months following September&nbsp;13,
2001. A subsequent extension of the hearing schedule also
extended the refund effective period by 120&nbsp;days. Hearings
were held during the months of July and August 2003, and a
post-hearing briefing schedule has been established. The
schedule anticipates a decision from the presiding FERC
administrative law judge in February 2004. In addition,
</FONT>

<P align="center"><FONT size="2">2
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">the parties to the proceeding are engaged in
post-hearing settlement talks. If FERC grants the relief
requested in the complaint, the relief may result in a material
increase in production costs allocated to us. We believe that
any changes in the allocation of production costs resulting from
a FERC decision should result in similar rate changes for retail
customers. Thus, we do not believe that this proceeding will
have a material effect on our financial condition, although we
cannot predict at this time either the timing or the outcome of
the proceedings at the FERC or the timing of any subsequent cost
recovery proceeding at the APSC.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In March 2003, ENO and the advisors to the CNO
presented to the CNO an agreement in principle that would settle
ENO&#146;s rate and resource plan proceedings currently before
the CNO and would also result in the CNO withdrawing as a
complainant in the FERC System Agreement proceeding. The CNO
approved the agreement in principle on May&nbsp;15, 2003.
Certain intervenors in the proceeding have appealed the
CNO&#146;s approval to the Civil District Court for the Parish
of Orleans. Pursuant to the agreement in principle approved by
the CNO, the CNO withdrew as a complainant from the FERC System
Agreement proceeding, but continues to participate as an
intervenor. On May 30, 2003, the FERC accepted for filing the
purchased power agreements that comprise ENO&#146;s resource
plan, effective June&nbsp;1, 2003. ENO has obtained all
regulatory approvals upon which the agreement in principle was
conditioned.
</FONT>

<!-- link1 "FORWARD-LOOKING INFORMATION" -->

<P align="center">
<B><FONT size="2">FORWARD-LOOKING INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, we make statements concerning
our expectations, beliefs, plans, objectives, goals, strategies,
and future events or performance. Those statements are
&#147;forward-looking statements&#148; within the meaning of the
Private Securities Litigation Reform Act of 1995. Although we
believe that these forward-looking statements and the underlying
assumptions are reasonable, we cannot provide assurance that
they will prove to be correct.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Forward-looking statements involve a number of
risks and uncertainties, and there are factors that could cause
actual results to differ materially from those expressed or
implied in the statements. Some of those factors (in addition to
others described elsewhere in this prospectus, any prospectus
supplement and the documents incorporated by reference) include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">resolution of future rate cases and negotiations
    and other regulatory decisions, including those decisions
    related to our utility supply plan
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to reduce our operation and
    maintenance costs, including the uncertainty of negotiations
    with unions to agree with such reductions
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the performance of our generating plants, and
    particularly the capacity factor at our nuclear generating
    facilities
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in regulation of nuclear generating
    facilities and nuclear materials and fuel, including possible
    shutdown of nuclear generating facilities
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the prices and availability of power that we must
    purchase for our utility customers
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in the financial markets, particularly
    those affecting the availability of capital and our ability to
    refinance existing debt and to fund capital expenditures
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">actions of rating agencies, including changes in
    the ratings of debt and preferred stock
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in inflation and interest rates
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">volatility and changes in markets for
    electricity, natural gas, and other energy-related commodities
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in utility regulation, including
    wholesale competition, the ability to recover net utility assets
    and other potential stranded costs, and the establishment of a
    regional transmission organization
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in environmental, tax and other laws,
    including requirements for reduced emissions of sulfur,
    nitrogen, carbon, and other substances
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the economic climate, and particularly growth in
    our service territory
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">3
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">variations in weather and other natural disasters
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">advances in technology
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the potential impacts of threatened or actual
    terrorism and war
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the effects of litigation
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in accounting standards
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in corporate governance and securities
    law requirements
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to attract and retain talented
    management and directors
    </FONT></TD>
</TR>

</TABLE>

<!-- link1 "ABOUT THIS PROSPECTUS" -->

<P align="center">
<B><FONT size="2">ABOUT THIS PROSPECTUS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is part of a registration
statement that we filed with the Securities and Exchange
Commission, or SEC, utilizing a &#147;shelf&#148; registration
process. Under this shelf process, we may sell the securities
described in this prospectus in one or more offerings up to a
total dollar amount of $600,000,000. This prospectus provides a
general description of the securities being offered. Each time
we sell a series of securities we will provide a prospectus
supplement containing specific information about the terms of
that series of securities and the related offering. It is
important for you to consider the information contained in this
prospectus and the related prospectus supplement together with
additional information described under the heading &#147;Where
You Can Find More Information&#148; in making your investment
decision.
</FONT>

<!-- link1 "ENTERGY ARKANSAS, INC." -->

<P align="center">
<B><FONT size="2">ENTERGY ARKANSAS, INC.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Entergy Arkansas, Inc. is an electric public
utility company providing service to customers in the State of
Arkansas since 1926. We also provide retail electric service to
a small number of customers in Tennessee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are owned by Entergy Corporation, which is a
registered public utility holding company under the Public
Utility Holding Company Act of 1935. The other major public
utilities owned by Entergy Corporation are Entergy Gulf States,
Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc. and
Entergy New Orleans, Inc. Entergy Corporation also owns all of
the common stock of System Energy Resources, Inc., the principal
asset of which is its interest in the Grand Gulf Electric
Generating Station.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Capacity and energy from Grand Gulf are allocated
among Entergy Arkansas, Inc., Entergy Louisiana, Inc., Entergy
Mississippi, Inc. and Entergy New Orleans, Inc. under a unit
power sales agreement. Our allocated share of Grand Gulf&#146;s
capacity and energy, together with related costs is 36%.
Payments we make under the Unit Power Sales Agreement are
generally recovered through rates set by the APSC and the
Tennessee Regulatory Authority, which regulate our electric
service, rates and charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Together with Entergy Louisiana, Inc., Entergy
Mississippi, Inc., and Entergy New Orleans, Inc., we own all of
the capital stock of System Fuels, Inc. System Fuels, Inc. is a
special purpose company which implements and maintains certain
programs for the purchase, delivery and storage of fuel supplies
for Entergy Corporation&#146;s utility subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information above is only a summary and is
not complete. You should read the incorporated documents listed
under the caption &#147;Where You Can Find More
Information&#148; for more specific information concerning our
business and affairs, including significant contingencies,
significant factors and known trends, our general capital
requirements, our financing plans and capabilities, and pending
legal and regulatory proceedings.
</FONT>

<P align="center"><FONT size="2">4
</FONT>

<!-- PAGEBREAK -->

<!-- link1 "RATIOS OF EARNINGS TO FIXED CHARGES" -->

<P align="center">
<B><FONT size="2">RATIOS OF EARNINGS TO FIXED CHARGES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have calculated the ratio of earnings to fixed
charges pursuant to Item 503 of SEC Regulation&nbsp;S-K as
follows:
</FONT>

<CENTER>
<TABLE width="40%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">12 Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Years Ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Earnings,&#148; as defined by
Regulation&nbsp;S-K, represent the aggregate of (1) income
before the cumulative effect of an accounting change,
(2)&nbsp;taxes based on income, (3)&nbsp;investment tax credit
adjustments-net and (4)&nbsp;fixed charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Fixed Charges&#148; include interest
(whether expensed or capitalized), related amortization and
estimated interest applicable to rentals charged to operating
expenses.
</FONT>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have filed a registration statement on
Form&nbsp;S-3 with the SEC under the Securities Act of 1933.
This prospectus is part of the registration statement, but the
registration statement also contains or incorporates by
reference additional information and exhibits. We are subject to
the informational requirements of the Securities Exchange Act of
1934 and, therefore, we are required to file annual, quarterly
and current reports, proxy statements and other information with
the SEC. Our filings are available to the public on the Internet
at the SEC&#146;s home page located at http://www.sec.gov or you
may read and copy any document at the SEC&#146;s public
reference room located at 450&nbsp;Fifth Street, N.W.,
Room&nbsp;1024, Washington, D.C. 20549-1004. Call the SEC at
1-800-732-0330 for more information about the public reference
room and how to request documents.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SEC allows us to &#147;incorporate by
reference&#148; the information filed by us with the SEC, which
means we can refer you to important information without
restating it in this prospectus. The information incorporated by
reference is an important part of this prospectus, and
information that we file later with the SEC will automatically
update and supersede this information. We incorporate by
reference the documents listed below, along with any future
filings that we make with the SEC under Sections&nbsp;13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934 until
we have sold all of the securities described in this prospectus:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;Annual Report on Form&nbsp;10-K for the
    fiscal year ended December&nbsp;31, 2002;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;Quarterly Report on Form&nbsp;10-Q for
    the quarter ended March&nbsp;31, 2003; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;Quarterly Report on Form&nbsp;10-Q for
    the quarter ended June&nbsp;30, 2003.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">You may access a copy of any or all of these
filings, free of charge, at our web site
<B>http://www.entergy.com </B>or by writing or telephoning us at
the following address:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Christopher T. Screen
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Assistant Secretary
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Entergy Arkansas, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">P. O. Box 61000
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">New Orleans, Louisiana 70161
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(504)&nbsp;576-4212
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">You may also direct your requests via e-mail to
cscreen@entergy.com.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should rely only on the information
incorporated by reference or provided in this prospectus or any
prospectus supplement. We have not, and any underwriters,
dealers or agents have not, authorized anyone else to provide
you with different information about us or the securities. We
are not, and any underwriters, dealers or agents are not, making
an offer of the securities in any state where the offer is not
permitted. You should not assume that the information in this
prospectus or any prospectus supplement is accurate as of any
other date than
</FONT>

<P align="center"><FONT size="2">5
</FONT>
<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">the date on the front of those documents or that
the documents incorporated by reference in this prospectus are
accurate as of any date other than the date those documents were
filed with the SEC. Our business, financial condition, results
of operations and prospects may have changed since those dates.
</FONT>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The net proceeds from the offering of the
securities will be used either (a)&nbsp;to acquire or redeem one
or more series of our outstanding securities on their stated due
dates or in some cases prior to their stated due dates or (b)
for other general corporate purposes. The specific securities,
if any, to be acquired or redeemed with the proceeds of a
particular series of securities, and any other use of proceeds,
will be set forth in the prospectus supplement relating to that
series.
</FONT>

<!-- link1 "DESCRIPTION OF THE FIRST MORTGAGE BONDS" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF THE FIRST MORTGAGE
BONDS</FONT></B>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will issue the First Mortgage Bonds offered by
this prospectus from time to time in one or more series under
one or more separate supplemental indentures to the Mortgage and
Deed of Trust dated as of October&nbsp;1, 1944, with Deutsche
Bank Trust Company Americas, successor Corporate Trustee,
Stanley Burg, successor co-Trustee and, as to property in
Missouri, BNY Trust Company of Missouri, successor co-Trustee,
and together referred to in this prospectus as Trustees. This
Mortgage and Deed of Trust, as amended and supplemented, is
referred to in this prospectus as the &#147;Mortgage.&#148; All
First Mortgage Bonds issued or to be issued under the Mortgage,
including the First Mortgage Bonds offered by this prospectus,
are referred to herein as &#147;First Mortgage Bonds.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The statements in this prospectus and any
accompanying prospectus supplement concerning the First Mortgage
Bonds and the Mortgage are not comprehensive and are subject to
the detailed provisions of the Mortgage. The Mortgage and a form
of supplemental indenture are filed as exhibits to the
registration statement. You should read these documents for
provisions that may be important to you. The Mortgage has been
qualified under the Trust Indenture Act of 1939. You should
refer to the Trust Indenture Act for provisions that apply to
the First Mortgage Bonds. Wherever particular provisions or
defined terms in the Mortgage are referred to under the
&#147;Description of the First Mortgage Bonds&#148; those
provisions or defined terms are incorporated by reference in the
prospectus.
</FONT>

<P align="left">
<B><FONT size="2">Terms of Specific Series of the First Mortgage
Bonds</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A prospectus supplement relating to each series
of First Mortgage Bonds offered by this prospectus will include
a description of the specific terms relating to the offering of
that series. These terms will include any of the following terms
that apply to that series:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the designation, or name, of the series
    of First Mortgage Bonds;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;the aggregate principal amount of the
    series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;the offering price of the series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;the date on which the series will mature;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;the rate or method for determining the
    rate at which the series will bear interest;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">6.&nbsp;the date from which interest on the
    series accrues;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">7.&nbsp;the dates on which interest on the series
    will be payable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">8.&nbsp;the prices and other terms and
    conditions, if any, upon which we may redeem the series prior to
    maturity;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">9.&nbsp;the applicability of the dividend
    covenant described below to the series;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">6
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">10.&nbsp;the terms of any insurance policy, if
    any, that will be provided for the payment of principal of
    and/or interest on the series; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">11.&nbsp;any other terms or provisions relating
    to that series that are not inconsistent with the Mortgage.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of August&nbsp;31, 2003, we had
$995&nbsp;million of First Mortgage Bonds outstanding.
</FONT>

<P align="left">
<B><FONT size="2">Maintenance and Replacement Fund</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to actual expenditures for
maintenance and repairs, as long as any series of First Mortgage
Bonds created prior to March&nbsp;1, 1996 are outstanding, the
Mortgage requires us to expend or deposit each year an amount
equal to $5,800,000 plus 2% of net additions to the mortgaged
electric, gas, steam and/or hot water utility property made
after September&nbsp;30, 1959 and prior to the beginning of the
year for which the deposit is made. These funds are for
replacements and improvements on electric, gas, steam and/or hot
water utility property and certain automotive equipment subject
to the lien of the Mortgage. We can meet this requirement by:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;depositing cash;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;certifying gross property additions; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;certifying net cash expenditures for
    certain automotive equipment.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We may withdraw the cash against gross property
additions or by waiving our right to issue First Mortgage Bonds
on the basis of retired bond credits.
</FONT>

<P align="left">
<B><FONT size="2">Sinking or Improvement Fund</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Mortgage also provides that each series of
First Mortgage Bonds may be subject to annual sinking or
improvement fund payments. This amount is stated as 1% per year
of the greatest amount for each of these series outstanding
prior to the beginning of the year, less certain retired First
Mortgage Bonds. Any series of First Mortgage Bonds that we issue
under this prospectus will not be entitled to these sinking or
improvement fund requirements.
</FONT>

<P align="left">
<B><FONT size="2">Redemption and Retirement</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">General</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The prospectus supplement for a particular series
of First Mortgage Bonds offered by this prospectus will contain
the prices and other terms and conditions, if any, for
redemption of that series prior to maturity.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Special Retirement Provisions</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If, during any 12-month period, we dispose of
mortgaged property by order of or to any governmental authority,
resulting in the receipt of $10,000,000 or more as proceeds, we,
subject to certain conditions, must apply such proceeds, less
certain deductions, to the retirement of outstanding First
Mortgage Bonds. If this occurs, we may redeem the outstanding
First Mortgage Bonds of any series that are redeemable before
maturity by the application of cash deposited for this purpose
at the redemption prices applicable to those First Mortgage
Bonds. If any series of First Mortgage Bonds offered by this
prospectus will be redeemable for this purpose, the special
redemption prices applicable to that series will be set forth in
the prospectus supplement related to that series.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have reserved the right to amend the Mortgage
without any consent or other action of the holders of any series
of First Mortgage Bonds created after February&nbsp;29, 1996, to
provide that the specific retirement provisions can be modified
by a majority of the holders of First Mortgage Bonds or if all
the holders of First Mortgage Bonds are not affected by the
change, then by a majority of each series affected.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

<!-- PAGEBREAK -->

<P align="left">
<B><FONT size="2">Security</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The First Mortgage Bonds offered by this
prospectus, together with all other First Mortgage Bonds
outstanding now or in the future under the Mortgage, will be
secured by the Mortgage. In the opinion of our counsel, the
Mortgage constitutes a first mortgage lien on substantially all
of our property subject to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;leases of minor portions of our property
    to others for uses which, in the opinion of our counsel, do not
    interfere with our business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;leases of certain of our property that we
    do not use in our business; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;excepted encumbrances.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Mortgage does not create a lien on the
following &#147;excepted property&#148;:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;cash and securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;certain equipment, materials and supplies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;automobiles and other vehicles and
    aircraft, timber, minerals, mineral rights and royalties;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;receivables, contracts, leases and
    operating agreements; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;certain unimproved lands sold or to be
    sold.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Mortgage contains provisions that impose a
lien of the Mortgage on property that we acquired after the date
of the Mortgage, other than the excepted property, subject to
pre-existing liens. However, if we consolidate or merge with, or
sell substantially all of our assets to, another corporation,
the lien created by the Mortgage will generally not cover the
property of the successor company, other than the property it
acquires from us and improvements, replacements and additions to
that property.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Mortgage also provides that the Trustees have
a lien on the mortgaged property to ensure the payment of their
reasonable compensation, expenses and disbursements and for
indemnity against certain liabilities. This lien takes priority
over the lien securing the First Mortgage Bonds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Mortgage also contains restrictions on the
acquisition of property subject to liens and on the issuance of
bonds under divisional or prior lien mortgages.
</FONT>

<P align="left">
<B><FONT size="2">Issuance of Additional First Mortgage
Bonds</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The maximum principal amount of First Mortgage
Bonds that may be issued under the Mortgage is unlimited. First
Mortgage Bonds of any series may be issued from time to time on
the following bases:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;60% of the cost or fair value, whichever
    is less, of unfunded property additions after adjustments to
    offset retirements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;retirements of First Mortgage Bonds or
    qualified lien bonds; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;deposit of cash with the Trustees.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Property additions generally include, among other
things, electric, gas, steam or hot water property acquired
after June&nbsp;30, 1944. Securities, automobiles or other
vehicles or aircraft, or property used principally for the
production or gathering of natural gas may not be included as
property additions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of June&nbsp;30, 2003, we could have issued
approximately $50&nbsp;million of additional First Mortgage
Bonds on the basis of property additions and $614 million on the
basis of retired First Mortgage Bonds. We expect to issue the
First Mortgage Bonds offered by this prospectus on the basis of
property additions or on the basis of retired First Mortgage
Bonds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When First Mortgage Bonds are issued on the basis
of property additions as described in clause (1)&nbsp;above,
cash as described in clause (3)&nbsp;above or, with certain
exceptions, retired First Mortgage Bonds as described in clause
(2) above, the issuance must meet an &#147;earnings&#148; test.
The adjusted net earnings, before interest and income taxes, for
12 consecutive months of the preceding 15 months must be at
least twice the annual interest
</FONT>

<P align="center"><FONT size="2">8
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">requirements on all First Mortgage Bonds
outstanding at the time, plus the First Mortgage Bonds to be
issued, plus all indebtedness, if any, of prior rank. The
adjusted net earnings are calculated after provisions are made
for retirement and depreciation of property at least equal to
the maintenance and replacement fund requirements for that
period.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have reserved the right to amend the Mortgage
without the consent or other action of the holders of any of the
First Mortgage Bonds created after February&nbsp;29, 1996, and
the provisions discussed in the foregoing paragraphs describing
the issuance of First Mortgage Bonds on the basis of property
additions as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;to permit the issuance of First Mortgage
    Bonds on the basis of 80% of the cost or fair value, whichever
    is less, of unfunded property additions after adjustments to
    offset retirements; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;to modify the net earnings test
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a.&nbsp;to provide that the period over which we
    will calculate net earnings will be 12 consecutive months of the
    preceding 18&nbsp;months;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b.&nbsp;to specifically permit the inclusion in
    net earnings of revenues collected subject to possible refund
    and allowances for funds used during construction; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">c.&nbsp;to provide for no deduction for
    non-recurring charges.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have also reserved the right to amend the
Mortgage without any consent or other action of the holders of
any of the First Mortgage Bonds created after June&nbsp;30, 1978
to make any form of space satellites including solar power
satellites, space stations and other analogous facilities
available as property additions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that we are involved in a highly
leveraged transaction, the Mortgage contains no provisions that
give protection to bondholders. However, such a transaction
would require the approval of the various regulatory authorities
and we doubt that such approvals would be given in a highly
leveraged situation.
</FONT>

<P align="left">
<B><FONT size="2">Release and Substitution of Property</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may release property from the lien of the
Mortgage, without applying an earnings test, on the following
bases:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the deposit of cash or, to a limited
    extent, purchase money mortgages;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;property additions, after adjustments in
    certain cases to offset retirements and after making adjustments
    for qualified lien bonds, if any, outstanding against property
    additions; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;a waiver of the right to issue First
    Mortgage Bonds on the basis of retired bond credits.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We can withdraw cash upon the bases stated in
clause (2)&nbsp;and (3)&nbsp;above without applying any earnings
test.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Mortgage also contains special provisions
with respect to qualified lien bonds pledged and the disposition
of moneys received on pledged prior lien bonds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have reserved the right to amend the Mortgage
without the consent or other action of the holders of any of the
First Mortgage Bonds created after February&nbsp;29, 1996 to
permit release or substitution of property from the lien of the
Mortgage on the following basis:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;mortgaged property may be released in an
    amount equal to the principal amount of all the retired First
    Mortgage Bonds we elected to use for the release times the
    bonding ratio in effect at the time the First Mortgage Bonds
    were issued;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;unfunded property may be released so long
    as we have at least $1 in unfunded property additions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;existing limitations on the amount of
    obligations secured by purchase money mortgages upon property
    released will be eliminated such that the property can be
    released;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">9
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;transfer of all or substantially all of
    the property subject to the Mortgage by us is permitted provided
    the successor corporation assumes all our obligations under the
    Mortgage and we are released from the Mortgage; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;&#147;Funded Property&#148; shall mean
    property specified by us with a fair value determined by an
    independent expert not less than 10/8 of the sum of the amount
    of the outstanding First Mortgage Bonds and retired bond credits.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Dividend Covenant</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may covenant that, so long as a particular
series of First Mortgage Bonds remains outstanding, we will not
pay any cash dividends on common stock after a selected date
close to the date of the original issuance of that series of
First Mortgage Bonds, other than certain dividends that we may
declare prior to the date selected, except out of credits to
earned surplus after this selected date plus an amount not to
exceed $350&nbsp;million and plus any additional amounts that
the SEC may approve under the Public Utility Holding Company Act
of 1935. The prospectus supplement relating to a particular
series of First Mortgage Bonds will state if this covenant will
apply to that series.
</FONT>

<P align="left">
<B><FONT size="2">Modification</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Your rights as a bondholder may be modified with
the consent of the holders of 66 2/3% of the outstanding First
Mortgage Bonds, and, if less than all series of First Mortgage
Bonds are affected, the consent also of holders of 66 2/3% of
the outstanding First Mortgage Bonds of each series affected. In
general, no modification of the terms:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;of payment of principal or interest;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;obligations for special retirement due to
    the order of a governmental authority;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;affecting the lien of the Mortgage; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;reducing the percentage required for
    modification,
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">is effective against any bondholder without that
    bondholder&#146;s consent.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have reserved the right to amend the Mortgage
without the consent or action of any of the holders of First
Mortgage Bonds created after February&nbsp;29, 1996:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;to reduce the percentage vote required to
    modify certain rights of the holders of the First Mortgage Bonds
    to a majority of the holders of all outstanding First Mortgage
    Bonds;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;to provide that if a proposed change
    affects less than all series of outstanding First Mortgage Bonds
    then only the consent of a majority of the First Mortgage Bonds
    of each series affected is required to make this change; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;to permit us to amend the Mortgage
    without the consent of the holders of First Mortgage Bonds to
    make changes which do not adversely affect the interests of the
    holders in any material respect.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Defaults</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Defaults under the Mortgage include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;default in the payment of principal;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;default for 60&nbsp;days in the payment
    of interest or installments of funds for the retirement of First
    Mortgage Bonds;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;certain events of bankruptcy, insolvency
    or reorganization;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;defaults with respect to qualified lien
    bonds; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;default in other covenants for
    90&nbsp;days after notice.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">10
</FONT>

<!-- PAGEBREAK -->

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Trustees may withhold notice of default,
except in payment of principal, interest or funds for retirement
of First Mortgage Bonds, if they determine it is in your best
interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Corporate Trustee or the holders of 25% of
the First Mortgage Bonds may declare the principal and interest
due and payable on default. However, a majority of the holders
may annul such declaration if the default has been cured. No
holder of First Mortgage Bonds may enforce the lien of the
Mortgage without giving the Trustees written notice of a default
and unless
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the holders of 25% of the First Mortgage
    Bonds have requested the Trustees in writing to act and offered
    them reasonable opportunity to act and indemnity satisfactory to
    them against the costs, expenses and liabilities to be incurred
    thereby; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;the Trustees shall have failed to act.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The holders of a majority of the First Mortgage
Bonds may direct the time, method and place of conducting any
proceedings for any remedy available to the Trustees or
exercising any trust or power conferred upon the Trustees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are required to file an annual certificate
with the Trustees as to compliance with the provisions of the
Mortgage and as to the absence of a default with respect to any
of the covenants in the Mortgage.
</FONT>

<!-- link1 "DESCRIPTION OF DEBT SECURITIES" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF DEBT SECURITIES</FONT></B>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Debt Securities will be our direct unsecured
general obligations. We will issue the debt securities offered
by this prospectus from time to time in one or more series under
one or more separate indentures between us and the financial
institution(s) that we will name in the prospectus supplement,
as Trustee. This indenture or these indentures are collectively
referred to in this prospectus as the &#147;indenture.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following description summarizes certain
general terms and provisions of the debt securities offered by
this prospectus. This summary is not complete and should be read
together with the prospectus supplement describing the specific
terms of the debt securities. The form of the indenture and form
of officer&#146;s certificate pursuant to which each series of
debt securities will be established have been filed as exhibits
to the registration statement. You should read the indenture for
provisions that may be important to you. The indenture will be
qualified under the Trust Indenture Act of 1939. You should
refer to the Trust Indenture Act for provisions that apply to
the debt securities. Whenever particular provisions or defined
terms in the indenture are referred to under this
&#147;Description of Debt Securities,&#148; those provisions or
defined terms are incorporated by reference in this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The debt securities will rank equally with all of
our other unsecured and unsubordinated debt. As of June&nbsp;30,
2003, we had approximately $153&nbsp;million of unsecured and
unsubordinated debt that would have ranked equally with the debt
securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The debt securities will be effectively
subordinated to all of our secured debt, including our First
Mortgage Bonds, as to the collateral pledged to secure this
debt. As of June&nbsp;30, 2003, we had approximately
$1,404&nbsp;million of secured debt outstanding.
</FONT>

<P align="left">
<B><FONT size="2">Terms of Specific Series of the Debt
Securities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A prospectus supplement relating to each series
of debt securities offered by this prospectus will include a
description of the specific terms relating to the offering of
that series. These terms will include any of the following terms
that apply to that series:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the title of the debt securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;the total principal amount of the debt
    securities;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">11
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;the date or dates on which the principal
    of the debt securities will be payable or how the date or dates
    will be determined;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;the rate or rates at which the debt
    securities will bear interest, or how the rate or rates will be
    determined, the date or dates from which any such interest will
    accrue, the interest payment dates for the debt securities and
    the regular record dates for interest payments;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;the percentage, if less than 100%, of the
    principal amount of the debt securities that will be payable if
    the maturity of the debt securities is accelerated;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">6.&nbsp;any period or periods within which, or
    any date or dates on which, and the price or prices at which and
    the terms and conditions upon which, we may redeem the debt
    securities at our option and any restrictions on those
    redemptions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">7.&nbsp;any sinking fund or other provisions or
    options held by holders of debt securities that would obligate
    us to repurchase or otherwise redeem the debt securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">8.&nbsp;any changes or additions to the events of
    default under the indenture or changes or additions to our
    covenants under the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">9.&nbsp;the denominations of the debt securities
    if issued in denominations other than $1,000;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">10.&nbsp;any currency or currencies other than
    United States dollars that payments in debt securities can be
    made;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">11.&nbsp;any collateral, security, assurance or
    guarantee for the debt securities; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">12.&nbsp;any other terms of the debt securities
    not inconsistent with the terms of the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture does not limit the principal amount
of debt securities that we may issue under the indenture. Our
Amended and Restated Articles of Incorporation generally limit
the amount of unsecured debt that we may issue to the equivalent
of 20% of the total of all our secured debt and total equity. As
of June&nbsp;30, 2003, approximately $255&nbsp;million of
additional unsecured debt could have been issued under this
provision.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may sell debt securities at a discount below
their principal amount. We may describe in the prospectus
supplement United States federal income tax considerations
applicable to debt securities sold at an original issue
discount. In addition, we may describe in the prospectus
supplement important United States federal income tax or other
tax considerations applicable to any debt securities denominated
or payable in a currency or currency unit other than United
States dollars.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as we may otherwise describe in the
prospectus supplement, the covenants contained in the indenture
will not afford holders of debt securities protection in the
event of a highly-leveraged or similar transaction involving us
or in the event of a change of control.
</FONT>

<P align="left">
<B><FONT size="2">Payment and Paying Agents</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as we may otherwise provide in the
prospectus supplement, we will pay interest, if any, on each
debt security payable on each interest payment date to the
person in whose name that debt security is registered as of the
close of business on the regular record date for that interest
payment date. However, interest payable at maturity will be paid
to the person to whom the principal is paid. If there has been a
default in the payment of interest on any debt security, the
defaulted interest may be paid to the holder of such debt
security as of the close of business on a date to be fixed by
the Trustee between 10 and 15&nbsp;days prior to the date
proposed by us for payment of such defaulted interest or in any
other manner permitted by any securities exchange on which that
debt security may be listed, if the Trustee finds it practicable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless we otherwise specify in the prospectus
supplement, principal of, and premium, if any, and interest on
the debt securities at maturity will be payable upon
presentation of the debt securities at the corporate trust
office of the Trustee in The City of New York, as our paying
agent. We may change the place of payment on the debt
securities, may appoint one or more additional paying agents,
including us, and may remove any paying agent, all at our
discretion.
</FONT>

<P align="center"><FONT size="2">12
</FONT>

<!-- PAGEBREAK -->

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As long as the debt securities are registered in
the name of The Depository Trust Company, or DTC, or its
nominee, as described under the caption &#147;Book-Entry Only
Securities,&#148; payments of principal, premium, if any, and
interest will be made to DTC for subsequent disbursement to
beneficial owners of the debt securities.
</FONT>

<P align="left">
<B><FONT size="2">Registration and Transfer</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless we otherwise specify in the prospectus
supplement, and subject to restrictions related to the issuance
of debt securities through DTC&#146;s book-entry system, the
transfer of debt securities may be registered, and debt
securities may be exchanged for other debt securities of the
same series or tranche, of authorized denominations and with the
same terms and principal amount, at the corporate trust office
of the Trustee in The City of New&nbsp;York. We may change the
place for registration of transfer and exchange of the debt
securities and may designate additional places for registration
and exchange. Unless we otherwise provide in the prospectus
supplement, no service charge will be made for any registration
of transfer or exchange of the debt securities. However, we may
require payment to cover any tax or other governmental charge
that may be imposed. We will not be required to execute or to
provide for the registration of transfer of, or the exchange of,
(1)&nbsp;any debt security during the 15&nbsp;days prior to
giving any notice of redemption or (2)&nbsp;any debt security
selected for redemption, except the unredeemed portion of any
debt security being redeemed in part.
</FONT>

<P align="left">
<B><FONT size="2">Satisfaction and Discharge</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to certain conditions, we will be
discharged from our obligations on the debt securities of a
particular series if we irrevocably deposit with the Trustee
sufficient cash or government securities to pay the principal,
interest, any premium and any other sums when due on the stated
maturity date or a redemption date of that series of debt
securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture will be deemed satisfied and
discharged when no debt securities remain outstanding and when
we have paid all other sums payable by us under the indenture.
</FONT>

<P align="left">
<B><FONT size="2">Consolidation, Merger and Sale of
Assets</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the terms of the indenture, we may not
consolidate with or merge into any other entity or convey, or
transfer or lease our properties and assets substantially as an
entirety to any entity, unless:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the surviving or successor entity is
    organized and validly existing under the laws of any domestic
    jurisdiction and it expressly assumes our payment obligations on
    all outstanding debt securities and our obligations under the
    indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;immediately after giving effect to the
    transaction, no event of default and no event which, after
    notice or lapse of time or both, would become an event of
    default, shall have occurred and be continuing; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;we shall have delivered to the Trustee an
    officer&#146;s certificate and an opinion of counsel as provided
    in the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Upon the consummation of any such transaction,
the surviving or successor entity will succeed to our rights and
powers under the indenture and, except in the case of a lease,
we shall be relieved of all obligations and covenants under the
indenture and the outstanding debt securities. The terms of the
indenture do not restrict us in a merger in which we are the
surviving entity.
</FONT>

<P align="left">
<B><FONT size="2">Events of Default</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Event of default,&#148; when used in the
indenture with respect to any series of debt securities, means
any of the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;failure to pay interest on any debt
    security of that series for 60&nbsp;days after it is due;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;failure to pay the principal of or any
    premium on any debt security of that series when due;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">13
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;failure to perform any other covenant in
    the indenture, other than a covenant that does not relate to
    that series of debt securities, that continues for 60&nbsp;days
    after we receive written notice from the Trustee, or after we
    and the Trustee receive a written notice from the holders of at
    least 33% in principal amount of the outstanding debt securities
    of that series; however, the Trustee or the Trustee and the
    holders of that principal amount of debt securities of that
    series can agree to an extension of the 60 day period and such
    an agreement to extend will be automatically deemed to occur if
    we are diligently pursuing action to correct the default;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;events in bankruptcy, insolvency or our
    reorganization specified in the indenture; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;any other event of default specified for
    that series of debt securities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An event of default for a particular series of
debt securities does not necessarily constitute an event of
default for any other series of debt securities issued under the
indenture. The Trustee may withhold notice to the holders of
debt securities of any default, except default in the payment of
principal, premium, if any, or interest, if it considers the
withholding of notice to be in the interests of holders.
</FONT>

<P align="left">
<B><FONT size="2">Remedies</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Acceleration of Maturity</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an event of default for any series of debt
securities occurs and continues, then either the Trustee or the
holders of at least 33% in principal amount of that series may
declare the entire principal amount of all the debt securities
of that series, together with accrued interest, to be due and
payable immediately. However, if the event of default is
applicable to more than one series of debt securities under the
indenture, only the Trustee or holders of at least 33% in
aggregate principal amount of the outstanding debt securities of
all affected series, voting as one class, and not the holders of
any one series, may make that declaration of acceleration.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At any time after a declaration of acceleration
with respect to the debt securities of any series has been made
and before a judgment or decree for payment of the money due has
been obtained, the event of default giving rise to that
declaration of acceleration will be considered waived, and that
declaration and its consequences will be considered rescinded
and annulled, if:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;we have paid or deposited with the
    Trustee a sum sufficient to pay:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a.&nbsp;all overdue interest on all debt
    securities of that series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b.&nbsp;the principal of and premium, if any, on
    any debt securities of that series which have otherwise become
    due and interest that is currently due;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">c.&nbsp;interest on overdue interest; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">d.&nbsp;all amounts due to the Trustee under the
    indenture; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;any other event of default with respect
    to the debt securities of that series has been cured or waived
    as provided in the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">However, no such waiver or rescission and
annulment shall extend to or shall affect any subsequent default
or impair any related right.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Right to Direct Proceedings</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than its duties in case of an event of
default, the Trustee is not obligated to exercise any of its
rights or powers under the indenture at the request, order or
direction of any of the holders, unless the holders offer the
Trustee reasonable security or indemnity. If they provide this
reasonable security or indemnity, the holders of a majority in
principal amount of any series of debt securities will have the
right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or
exercising any power conferred upon the Trustee. However, if the
event of default relates to more than one series of debt
securities, only the holders of a majority in aggregate
principal amount of all affected series, voting as one class,
will have the right
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<DIV align="left">
<FONT size="2">to give this direction and not the holders of any
one series. The Trustee is not obligated to comply with
directions that conflict with law or other provisions of the
indenture.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Limitation on Right to Institute
    Proceedings</FONT></I></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">No holder of debt securities of any series will
    have any right to institute any proceeding under the indenture,
    or any remedy under the indenture, unless:
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the holder has previously given to the
    Trustee written notice of a continuing event of default;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;the holders of a majority in aggregate
    principal amount of the outstanding debt securities of all
    series in respect of which an event of default shall have
    occurred and be continuing have made a written request to the
    Trustee, and have offered reasonable indemnity to the Trustee to
    institute proceedings; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;the Trustee has failed to institute any
    proceeding for 60&nbsp;days after that notice, request and offer
    of indemnity.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">However, these limitations do not apply to a suit
by a holder of a debt security for payment of the principal,
premium, if any, or interest on that debt security on or after
the applicable due date.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Annual Notice to Trustee</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will provide to the Trustee an annual
statement by an appropriate officer as to our compliance with
all conditions and covenants under the indenture.
</FONT>

<P align="left">
<B><FONT size="2">Modification and Waiver</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Without the consent of any holder of debt
securities, we may enter into one or more supplemental
indentures for any of the following purposes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;to evidence the assumption by any
    permitted successor of our covenants in the indenture and in the
    debt securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;to add additional covenants or to
    surrender any of our rights or powers under the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;to add additional events of default;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;to change or eliminate any provision of
    the indenture or to add any new provision to the indenture;
    provided, however, if the change, elimination or addition will
    adversely affect the interests of the holders of debt securities
    of any series in any material respect, the change, elimination
    or addition will become effective only:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a) when the consent of the holders of debt
    securities of that series has been obtained in accordance with
    the indenture; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b) when no debt securities of the affected series
    remain outstanding under the indenture;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;to provide collateral security for all
    but not part of the debt securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">6.&nbsp;to establish the form or terms of debt
    securities of any series as permitted by the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">7.&nbsp;to provide for the authentication and
    delivery of bearer securities and coupons attached thereto;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">8.&nbsp;to evidence and provide for the
    acceptance of appointment of a successor Trustee;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">9.&nbsp;to provide for the procedures required
    for use of a non-certificated system of registration for the
    debt securities of all or any series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">10.&nbsp;to change any place where principal,
    premium, if any, and interest shall be payable, debt securities
    may be surrendered for registration of transfer or exchange and
    notices to us may be served; or
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">15
</FONT>

<!-- PAGEBREAK -->
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">11.&nbsp;to cure any ambiguity or inconsistency
    or to make any other change to the provisions or to add other
    provisions with respect to matters or questions arising under
    the indenture; provided that the action does not adversely
    affect the interests of the holders of debt securities of any
    series in any material respect.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of a majority in aggregate principal
amount of the debt securities of all series then outstanding may
waive our compliance with some restrictive provisions of the
indenture. The holders of a majority in principal amount of the
outstanding debt securities of any series may waive any past
default under the indenture with respect to that series, except
a default in the payment of principal, premium, if any, or
interest and certain covenants and provisions of the indenture
that cannot be modified or be amended without the consent of the
holder of each outstanding debt security of the series affected.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the Trust Indenture Act of 1939 is amended
after the date of the indenture in such a way as to require
changes to the indenture, the indenture will be deemed to be
amended so as to conform to that amendment to the Trust
Indenture Act of 1939. We and the Trustee may, without the
consent of any holders, enter into one or more supplemental
indentures to evidence that amendment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consent of the holders of a majority in
aggregate principal amount of the debt securities of all series
then outstanding, voting as one class, is required for all other
modifications to the indenture. However, if less than all of the
series of debt securities outstanding are directly affected by a
proposed supplemental indenture, then the consent only of the
holders of a majority in aggregate principal amount of all
series that are directly affected, voting as one class, will be
required. No supplemental indenture may:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;change the stated maturity of the
    principal of, or any installment of principal of or interest on,
    any debt security, or reduce the principal amount of any debt
    security or its rate of interest or change the method of
    calculating the interest rate or reduce any premium payable upon
    redemption, or reduce the amount of principal that would be due
    and payable upon a declaration of acceleration of the maturity
    thereof, or change the currency in which payments are made, or
    impair the right to institute suit for the enforcement of any
    payment on or after the stated maturity of any debt security,
    without the consent of the holder of that debt security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;reduce the percentage in principal amount
    of the outstanding debt securities of any series the consent of
    the holders of which is required for any supplemental indenture
    or any waiver of compliance with a provision of the indenture or
    any default thereunder and its consequences, or reduce the
    requirements for quorum or voting, without the consent of all
    the holders of the series; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;modify some of the provisions of the
    indenture relating to supplemental indentures, waivers of
    certain covenants and waivers of past defaults with respect to
    the debt securities of any series, without the consent of the
    holder of each outstanding debt security affected thereby.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A supplemental indenture which changes the
indenture solely for the benefit of one or more particular
series of debt securities, or modifies the rights of the holders
of debt securities of one or more series, will not affect the
rights under the indenture of the holders of the debt securities
of any other series.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture provides that debt securities owned
by us, anyone else required to make payment on the debt
securities or any affiliate of ours shall be disregarded and
considered not to be outstanding in determining whether the
required holders have given a request or consent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may fix in advance a record date to determine
the required number of holders entitled to give any request,
demand, authorization, direction, notice, consent, waiver or
other such act of the holders, but we shall have no obligation
to do so. If we fix a record date, that request, demand,
authorization, direction, notice, consent, waiver or other act
of the holders may be given before or after that record date,
but only the holders of record at the close of business on that
record date will be considered holders for the purposes of
determining whether holders of the required percentage of the
outstanding debt securities have authorized or agreed or
consented to the request, demand, authorization, direction,
notice, consent, waiver or other act of the holders. For that
purpose, the outstanding debt securities shall be computed as of
the record date. Any request, demand, authorization, direction,
notice, consent, election, waiver or other act of a holder will
bind every future holder of the same debt securities and the
holder of every debt security issued upon the registration of
transfer of or in exchange of those
</FONT>

<P align="center"><FONT size="2">16
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">debt securities. A transferee will be bound by
acts of the Trustee or us in reliance thereon, whether or not
notation of that action is made upon the debt security.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Resignation of Trustee</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A Trustee may resign at any time by giving
written notice to us or may be removed at any time by act of the
holders of a majority in principal amount of all series of debt
securities then outstanding delivered to the Trustee and us. No
resignation or removal of a Trustee and no appointment of a
successor Trustee will be effective until the acceptance of
appointment by a successor Trustee. So long as no event of
default or event which, after notice or lapse of time, or both,
would become an event of default has occurred and is continuing
and except with respect to a Trustee appointed by act of the
holders, if we have delivered to the Trustee a resolution of our
board of directors appointing a successor Trustee and such
successor has accepted the appointment in accordance with the
terms of the respective indenture, the Trustee will be deemed to
have resigned and the successor will be deemed to have been
appointed as Trustee in accordance with the indenture.
</FONT>

<P align="left">
<B><FONT size="2">Notices</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notices to holders of debt securities will be
given by mail to the addresses of such holders as they appear in
the security register under the indenture.
</FONT>

<P align="left">
<B><FONT size="2">Title</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, the Trustee, and any of our agents or any
agent of the Trustee, may treat the person in whose name debt
securities are registered as the absolute owner thereof, whether
or not the debt securities may be overdue, for the purpose of
making payments and for all other purposes irrespective of
notice to the contrary.
</FONT>

<P align="left">
<B><FONT size="2">Governing Law</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture and the debt securities will be
governed by, and construed in accordance with, the laws of the
State of New York.
</FONT>

<!-- link1 "BOOK-ENTRY ONLY SECURITIES" -->

<P align="center">
<B><FONT size="2">BOOK-ENTRY ONLY SECURITIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise specified in the applicable
prospectus supplement, DTC will act as securities depositary for
the securities offered by this prospectus. The securities will
be issued only as fully registered securities registered in the
name of Cede &#38; Co., DTC&#146;s partnership nominee, or such
other name as may be registered by an authorized representative
of DTC. One or more fully registered certificates will be issued
for each series of securities, representing the aggregate
principal amount of that series of securities, and will be
deposited with DTC or its custodian.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">DTC is a limited-purpose trust company organized
under the New York Banking Law, a &#147;banking
organization&#148; within the meaning of the New York Banking
Law, a member of the Federal Reserve System, a &#147;clearing
corporation&#148; within the meaning of the New York Uniform
Commercial Code, and a &#147;clearing agency&#148; registered
pursuant to the provisions of Section&nbsp;17A of the Securities
Exchange Act of 1934. DTC holds and provides asset servicing for
United States and foreign equity issues, corporate and municipal
debt issues, and money market instruments from countries that
DTC participants (&#147;Direct Participants&#148;) deposit with
DTC. DTC also facilitates the post-trade settlement among Direct
Participants of sales and other securities transactions in
deposited securities, through electronic computerized book-entry
transfers and pledges between the accounts of Direct
Participants, thereby eliminating the need for physical movement
of securities certificates. Direct Participants include both
United States and foreign securities brokers and dealers, banks,
trust companies, clearing corporations, and certain other
organizations. DTC is a wholly owned subsidiary of The
Depository Trust &#38; Clearing Corporation (&#147;DTCC&#148;).
DTCC is, in turn, owned by a number of Direct Participants of
DTC and members of the National Securities Clearing Corporation,
Government Securities Clearing Corporation, MBS Clearing
Corporation, and Emerging Markets Clearing Corporation, all of
which clearing corporations are subsidiaries of DTCC, as well as
by The New York Stock Exchange, Inc., the American Stock
Exchange LLC,
</FONT>

<P align="center"><FONT size="2">17
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">and the National Association of Securities
Dealers, Inc. Access to the DTC system is also available to
other entities such as both United States and foreign securities
brokers and dealers, banks, trust companies, and clearing
corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or
indirectly (&#147;Indirect Participants&#148; and, together with
Direct Participants, the &#147;Participants&#148;). The DTC
rules applicable to its Participants are on file with the SEC.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Purchases of securities under the DTC system must
be made by or through Direct Participants, which will receive a
credit for the securities on the records of DTC. The ownership
interest of each actual purchaser of a security
(&#147;Beneficial Owner&#148;) is in turn to be recorded on the
records of the Direct Participant or the Indirect Participant.
Beneficial Owners will not receive written confirmation from DTC
of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings,
from the Direct Participant or Indirect Participant through
which the Beneficial Owner entered into the transaction.
Transfers of ownership interests in the securities are to be
accomplished by entries made on the books of Direct Participants
and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing
their ownership interests in the securities, except in the event
that use of the book-entry system for the securities is
discontinued.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To facilitate subsequent transfers, all
securities deposited by Direct Participants with DTC are
registered in the name of Cede &#38; Co., the partnership
nominee of DTC, or such other name as may be requested by an
authorized representative of DTC. The deposit of the securities
with DTC and their registration in the name of Cede &#38; Co. or
such other DTC nominee do not effect any change in beneficial
ownership. DTC has no knowledge of the actual Beneficial Owners
of the securities; the records of DTC reflect only the identity
of the Direct Participants to whose accounts such securities are
credited, which may or may not be the Beneficial Owners. The
Direct Participants and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of
their customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Conveyance of notices and other communications by
DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect
Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. Beneficial
Owners of securities may wish to take certain steps to augment
the transmission to them of notices of significant events with
respect to the securities, such as redemptions, tenders,
defaults, and proposed amendments to the Mortgage or the
indenture. For example, Beneficial Owners of securities may wish
to ascertain that the nominee holding the securities for their
benefit has agreed to obtain and to transmit notices to
Beneficial Owners. In the alternative, Beneficial Owners may
wish to provide their names and addresses to the applicable
trustee and request that copies of notices be provided directly
to them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Redemption notices shall be sent to DTC. If less
than all of the securities of a particular series are being
redeemed, the practice of DTC is to determine by lot the amount
of the interest of each Direct Participant in such series to be
redeemed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither DTC nor Cede &#38; Co. nor any other DTC
nominee will consent or vote with respect to the securities
unless authorized by a Direct Participant in accordance with DTC
procedures. Under its usual procedures, DTC mails an omnibus
proxy to us as soon as possible after the record date. The
omnibus proxy assigns the consenting or voting rights of Cede
&#38; Co. to those Direct Participants to whose accounts
securities are credited on the record date, identified in a
listing attached to the omnibus proxy.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Redemption proceeds, principal payments, interest
payments, and any premium payments on the securities will be
made to Cede &#38; Co. or such other nominee as may be requested
by an authorized representative of DTC. The practice of DTC is
to credit the accounts of Direct Participants, upon the receipt
by DTC of funds and corresponding detail information from us or
the applicable trustee, on the payable date in accordance with
their respective holdings shown on the records of DTC. Payments
by Participants to Beneficial Owners will be governed by
standing instructions and customary practice, as is the case
with securities held for the accounts of customers in bearer
form or registered in &#147;street name,&#148; and will be the
responsibility of such Participant and not of DTC or its
nominee, the applicable trustee, any underwriters or dealers or
agents, or us, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of
redemption proceeds, principal, interest, and any premium on the
securities to Cede &#38; Co. or such other nominee as may be
requested by an
</FONT>

<P align="center"><FONT size="2">18
</FONT>

<!-- PAGEBREAK -->

<DIV align="left">
<FONT size="2">authorized representative of DTC is the
responsibility of either the applicable trustee or us,
disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the
Beneficial Owners will be the responsibility of Direct
Participants and Indirect Participants.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A Beneficial Owner shall give notice to elect to
have its securities purchased or tendered, through its
Participant, to the tender or remarketing agent and shall effect
delivery of such securities by causing the Direct Participant to
transfer the interest of the Participant in the securities, on
the records of DTC, to the tender or remarketing agent. The
requirement for physical delivery of the securities in
connection with an optional tender or a mandatory purchase will
be deemed satisfied when the ownership rights in the securities
are transferred by Direct Participants on the records of DTC and
followed by a book-entry credit of tendered securities to the
DTC account of the tender or remarketing agent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">DTC may discontinue providing its services as
depository with respect to the securities at any time by giving
reasonable notice to the applicable trustee or us. Under such
circumstances, in the event that a successor depository is not
obtained, certificates for the securities are required to be
printed and delivered.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may decide to discontinue use of the system of
book-entry transfers through DTC or a successor securities
depository. In that event, certificates for the securities will
be printed and delivered.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information in this section concerning DTC
and its book-entry system has been obtained from sources that we
believe to be reliable, but we take no responsibility for the
accuracy thereof.
</FONT>

<!-- link1 "EXPERTS AND LEGALITY" -->

<P align="center">
<B><FONT size="2">EXPERTS AND LEGALITY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The financial statements and related financial
statement schedule incorporated in this prospectus by reference
from our Annual Report on Form 10-K for the year ended
December&nbsp;31, 2002 have been audited by Deloitte &#38;
Touche LLP, independent auditors, as stated in their report,
which is incorporated herein by reference, and have been so
incorporated in reliance upon the report of such firm given upon
their authority as experts in accounting and auditing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the securities will be passed
upon for us by Friday, Eldredge &#38; Clark, LLP, Little Rock,
Arkansas and Thelen Reid &#38; Priest LLP, New York, New York,
and for any underwriters, dealers or agents by Pillsbury
Winthrop LLP, New York, New York. All legal matters pertaining
to our organization, titles to property, franchises and the lien
of the Mortgage and all matters pertaining to Arkansas,
Missouri, Tennessee and Wyoming law will be passed upon only by
Friday, Eldredge &#38; Clark, LLP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The statements in this prospectus as to matters
of law and legal conclusions made under &#147;Description of the
First Mortgage Bonds&nbsp;&#151; Security,&#148; have been
reviewed by Friday Eldredge &#38; Clark, LLP, and are set forth
herein in reliance upon the opinion of said counsel, and upon
their authority as experts.
</FONT>

<!-- link1 "PLAN OF DISTRIBUTION" -->

<P align="center">
<B><FONT size="2">PLAN OF DISTRIBUTION</FONT></B>

<P align="left">
<B><FONT size="2">Methods and Terms of Sale</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may use a variety of methods to sell the
securities including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;through one or more underwriters or
    dealers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;directly to one or more purchasers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;through one or more agents; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;through a combination of any such methods
    of sale.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">19
</FONT>

<!-- PAGEBREAK -->

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The prospectus supplement relating to a
particular series of the securities will set forth the terms of
the offering of the securities, including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;the name or names of any underwriters,
    dealers or agents and any syndicate of underwriters;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;the initial public offering price;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">3.&nbsp;any underwriting discounts and other
    items constituting underwriters&#146; compensation;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">4.&nbsp;the proceeds we receive from that sale;
    and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">5.&nbsp;any discounts or concessions allowed or
    reallowed or paid by any underwriters to dealers.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Underwriters</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we sell the securities through underwriters,
they will acquire the securities for their own account and may
resell them from time to time in one or more transactions,
including negotiated transactions, at a fixed public offering
price or at varying prices determined at the time of sale. The
underwriters for a particular underwritten offering of
securities will be named in the prospectus supplement and, if an
underwriting syndicate is used, the managing underwriter or
underwriters will be named on the cover page. In connection with
the sale of securities, the underwriters may receive
compensation from us or from purchasers in the form of
discounts, concessions or commissions. The obligations of the
underwriters to purchase securities will be subject to certain
conditions. The underwriters will be obligated to purchase all
of the securities of a particular series if any are purchased.
However, the underwriters may purchase less than all of the
securities of a particular series should certain circumstances
involving a default of one or more underwriters occur.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The initial public offering price and any
discounts or concessions allowed or reallowed or paid to dealers
by any underwriters may be changed from time to time.
</FONT>

<P align="left">
<B><FONT size="2">Stabilizing Transactions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Underwriters may engage in stabilizing
transactions and syndicate covering transactions in accordance
with Rule&nbsp;104 under the Securities Exchange Act of 1934.
Stabilizing transactions permit bids to purchase the underlying
security so long as the stabilizing bids do not exceed a
specified maximum. Syndicate covering transactions involve
purchases of the securities in the open market after the
distribution has been completed in order to cover syndicate
short positions. These stabilizing transactions and syndicate
covering transactions may cause the price of the securities to
be higher than it would otherwise be if such transactions had
not occurred.
</FONT>

<P align="left">
<B><FONT size="2">Agents</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we sell the securities through agents, the
prospectus supplement will set forth the name of any agent
involved in the offer or sale of the securities as well as any
commissions we will pay to them. Unless otherwise indicated in
the prospectus supplement, any agent will be acting on a best
efforts basis for the period of its appointment.
</FONT>

<P align="left">
<B><FONT size="2">Related Transactions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Underwriters, dealers and agents (or their
affiliates) may engage in transactions with, or perform services
for, us or our affiliates in the ordinary course of business.
</FONT>

<P align="left">
<B><FONT size="2">Indemnification</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will agree to indemnify any underwriters,
dealers, agents or purchasers and their controlling persons
against certain civil liabilities, including liabilities under
the Securities Act of 1933.
</FONT>

<P align="center"><FONT size="2">20
</FONT>

<!-- PAGEBREAK -->

<P align="left">
<B><FONT size="2">Listing</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise specified in the applicable
prospectus supplement, the securities will not be listed on a
national securities exchange or the Nasdaq Stock Market. No
assurance can be given that any broker-dealer will make a market
in any series of the securities and, in any event, no assurance
can be given as to the liquidity of the trading market for any
of the securities.
</FONT>

<P align="center"><FONT size="2">21
</FONT>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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