Little Rock, Ark. – The Arkansas Public Service Commission on Friday signed
an order approving a $73.8 million rate increase for Entergy Arkansas, Inc. This
is the company’s first increase in base rates since 1985.
The Commission heard testimony on Thursday from representatives of all
parties in the case, all speaking in support of the settlement. The parties
included the general staff of the APSC, the state attorney general’s office, the
Arkansas Electric Energy Consumers, Audubon Society, Kroger Company,
Wal-Mart/Sam’s Stores, the Federal Executive Agencies, the University of
Arkansas System, Hino Motors, as well as the company.
“We appreciate the Commission’s approving this settlement, and we thank all
the parties that worked hard to come together on this important matter,” said
Hugh McDonald, president and chief executive officer, Entergy Arkansas, Inc.
New base rates will become effective with the first billing cycle in July.
Key elements of the settlement include:
• An approximate $73.8 (8.26 percent) million base rate increase for Entergy
Arkansas customers.
• A 10.2 percent allowed return on equity (up from the current 9.9 percent).
Even with the base rate increase, in July, a residential customer using 1,000
kilowatt-hours will see a monthly decrease of about $24 compared with July 2009
rates. A residential customer using 1,000 kilowatt-hours was paying $110.03 in
July 2009. This July, the bill will be $85.91. That represents a 22 percent
decrease from July 2009 to July 2010. This net decrease is the result of a
combination of lower fuel costs last year and a sizeable reduction in the amount
collected in the line item on customer bills described as “FERC-Imposed
Payment.”
Entergy Arkansas Inc. provides electricity to almost 687,000 customers in 63
counties. Entergy Corporation is an integrated energy company engaged primarily
in electric power production and retail distribution operations. Entergy owns
and operates power plants with approximately 30,000 megawatts of electric
generating capacity, and it is the second-largest nuclear generator in the
United States. Entergy delivers electricity to 2.7 million utility customers in
Arkansas, Louisiana, Mississippi and Texas.
-30-
Entergy’s online address is entergy-arkansas.com
Twitter: @EntergyMediaArk
