News Center > Entergy Arkansas Residential Rates to Decrease Nearly 4% for Second Straight Year
Entergy Arkansas Residential Rates to Decrease Nearly 4% for Second Straight Year
LITTLE ROCK, Ark. – For the second straight year, Entergy Arkansas customers will see a bill reduction, thanks to a lower fuel rate.
As a regulated utility, Entergy Arkansas files a “fuel and purchased power cost” adjustment, or rider, each spring with the Arkansas Public Service Commission. This rider is one of several line items that make up customer bills. It is the means by which Entergy Arkansas recovers the costs of fuel used in power plants and power purchased from other sources.
The new rate will reduce the bill for a typical residential customer using 1,000 kWh of electricity by $4.10. This is on top of a $4.20 reduction to the fuel rate that took effect in April of 2019.
“We know that every little bit helps, and we’re pleased that our fuel rate is decreasing again this year,” said Entergy Arkansas President and Chief Executive Officer Laura Landreaux. “It can mean a lot for many of our customers, especially those living paycheck to paycheck. That’s why we strive to make sound investments that improve reliability and why we work to drive overall costs down.”
The reduction in the rider is attributable to several factors, including lower gas prices, projects that have improved performance of Arkansas Nuclear One and transmission upgrades that have helped alleviate congestion on the electric grid.
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), 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, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.