NOTICE TO IMPLEMENT REVISED FIXED FUEL FACTOR

Entergy Gulf States, Inc., commonly referred to as Entergy Texas in Texas, hereby publishes NOTICE that, pursuant to Section 36.203 of the Public Utility Regulatory Act (codified in TEX. UTIL. CODE) and P.U.C. SUBST. R. 25.237(A)(3)(B), it filed with the Public Utility Commission of Texas (the "Commission") on February 16, 2007 a tariff to implement a revised fixed fuel factor. All of Entergy Texas' retail customers whose fuel charges are calculated under the Texas fixed fuel factor tariff - including but not limited to Residential, Small General Service, Large General Service, Large Industrial Power Service, and Street and Outdoor Lighting Service - will be affected by the Commission's approval of the revised fixed fuel factor. The revised fixed fuel factor, if approved, will affect only the fuel portion of the rates charged by Entergy Texas and will have no effect on nonfuel base rates.

Entergy Texas seeks Commission approval to revise the fixed fuel factor effective with the first billing cycle of the March 2007 billing month. Entergy Texas proposed that the fixed fuel factor be changed pursuant to a semiannual filing to be made each February and August, with revised fuel factors to be effective with the first billing cycle of the March and September billing months, pursuant to a methodology that changes the fuel factor based upon changes in the published price of natural gas. This methodology was authorized for use in Docket No. 32915.

The revised fixed fuel factor, differentiated by voltage level, is as follows: FACTOR BY VOLTAGE LEVELS
Delivery Voltage           Fixed Fuel Factor
Secondary                   0.611419¢ / kWh
Primary                       0.593872¢ / kWh
69kV/138kV                 0.569057¢ / kWh
230kV                         0.558904¢ / kWh
The revised fuel factor would decrease Entergy Texas' annual Texas retail fuel and purchased power revenues by approximately $43.4 Million, or 5%, on an annual basis. Compared to the fixed fuel factor approved by the Commission effective September 2006, a residential customer using 1000 kilowatthours (kWh) of electricity per month would see an approximate decrease of 2.8% annually, or $3.22 on average per month, on his/her electric bill. The fixed fuel factor rate is designed to pass through to customers the actual fuel costs incurred by Entergy Texas to serve customers. Entergy Texas is not allowed to make a profit on fuel costs. Entergy Texas expects that this change in the fixed fuel factor will better track actual fuel costs and lower the chances that an additional fuel surcharge will be implemented in the future. Amounts collected from affected customers pursuant to the revised fixed fuel factor will be subject to final review by the Commission in Entergy Texas' next applicable fuel reconciliation proceeding before the Commission. Entergy Texas expects the revised fixed fuel factor to be in effect for the billing period of March 2007 through August 2007.

Persons with questions or who want more information on the revised fixed fuel factor may contact Entergy Texas at Attn: Customer Service - Fuel Factor, 350 Pine Street, Beaumont, Texas 77701, or call [1/800-368- 3749 (select option 1, then press 0)] during normal business hours. A complete copy of Entergy Texas' filing is available for inspection at the address listed above.

The Commission has assigned Docket No. 33886 to this proceeding. Persons who wish to formally participate in this proceeding, or who wish to express their comments concerning this petition should contact the Public Utility Commission of Texas, Office of Customer Protection, P.O. Box 13326, Austin, Texas 78711-3326, or call (512) 936-7120 or toll free at (888) 782-8477. Hearing and speech-impaired individuals with text telephones (TTY) may call (512) 936-7136 or use Relay Texas (toll-free) 1-800-735-2989.

ENTERGY TEXAS