GULF STATES (GSU) SEES END TO CASH BY MAY Gulf States Utilities Co said its condition has "significantly deteriorated" and that its operating cash reserves will be inadequate by May 1987 unless it receives additional financing or rate relief from state public utilities commissions in Texas and Louisiana. In the company's newly-released annual report and 10-K filing, Gulf States said its bank lenders had notified the utility last month that no additional credit would be granted. Gulf States said the banks had requested the utility to begin making prepayments by the end of April of 45 mln dlrs more than the estimated 1987 lease payments of 40 mln dlrs. "The circumstances increase the likelihood that the company may have to seek protection from its creditors under the bankruptcy code," Gulf States said. The utility had previously said it might be forced to consider filing for bankruptcy because of limited rate increases granted by state regulators in connection with Gulf States' 4.3 billion dlr River Bend nuclear plant in Louisiana. "If the regulatory commissions approve the company's proposed rate moderation plan and grant the increases provided for in such plan during the initial three-year phase-in period, the company believes it could achieve financial stability," Gulf States said. In February, the Texas Public Utilities Commission granted Gulf States an interim rate increase of 39.9 mln dlrs contingent upon the utility obtaining a new 250 mln dlr line of credit to pay operating expenses. The utility had sought 144.1 mln dlrs in rate hikes in Texas. Gulf States has appealed a decision by Louisiana state regulators rejecting its application for 100 mln dlrs in emergency rate relief. In 1986, Gulf States earned 244.9 mln dlrs on revenues of 1.47 billion dlrs, compared to profits of 265.4 mln dlrs on sales of 1.85 billion in the previous year.