News Center > Entergy’s Economic Impact in Arkansas Estimated at Nearly $1 Billion
Entergy’s Economic Impact in Arkansas Estimated at Nearly $1 Billion
Company’s activities help strengthen communities, create jobs and boost the economy
LITTLE ROCK, Ark. – Research of Entergy’s economic contribution to Arkansas supports a picture of a vital and proactive investor-owned utility lighting homes and businesses for 700,000 Arkansans in 63 counties. Entergy’s total economic impact in Arkansas reaches almost $1 billion, with its low-cost electricity attracting critical business investment, creating jobs, and thus, contributing to the Gross State Product to help power the Natural State’s economy.
“Entergy’s top priority is providing safe, reliable and low-cost electricity for our customers,” said Hugh McDonald, Entergy Arkansas president and CEO. “Our rates are 25 percent below the national average and 15 percent below the regional average. Lower rates not only allow our customers to have more available income for other necessities like food and gasoline, but they also give Arkansas an advantage in competing for economic development projects.”
As one of Arkansas’ largest taxpayers, Entergy pays more than $127 million in state and local taxes, equivalent to the funds needed to send 14,300 children in Arkansas to school for one year. In fiscal year 2014, Entergy’s business activities supported over 6,100 jobs, with a workforce of direct employees or contractors close to 2,700. The remaining 3,400 were indirect and induced jobs.
“For every 10 direct jobs, Entergy’s activities in Arkansas supported about 13 more jobs in the state,” said McDonald. “Entergy spent $127 million with Arkansas-based suppliers in 2014. Sales in the extended supply chain plus sales stimulated by our employees’ own local spending stimulated $383 million in sales in the state,” said McDonald.
Jobs supported by Entergy in Arkansas carried an average wage of $65,500, a salary 26 percent above the national average and 62 percent above the Arkansas average. The main driver behind higher wages was the highly-skilled jobs required for Entergy’s direct operations.
“Each dollar spent by Entergy ripples through the state economy, triggering employment, new income and spending in virtually every industry sector,” said Bob Flanagan, direction of economics and country risk with IHS, Inc., a global market and industry consultancy firm.
At Entergy’s request, IHS, Inc. measured Entergy’s economic footprint in Arkansas. Financial and operations data for the 2014 fiscal year formed the primary-source information for the analysis. Both Entergy’s direct in-state operations (i.e., Entergy Arkansas) and the supply chain and induced economic impact attributable to various Entergy entities working with Arkansas-based companies were evaluated. For highlights of Entergy’s economic impact in Arkansas, see the Fact Sheet. For the complete IHS, Inc. study, visit http://entergyarkansas.com/content/economic_development/docs/EAI_Impact_Study.pdf.
Entergy Arkansas also actively supports and invests in community-based organizations, charities, events and activities. From 2011 to 2014, Entergy awarded $5.7 million in charitable gifts while Entergy employees and retirees helped build stronger communities through donating 36,000 volunteer hours to nonprofit organizations.
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation, 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 more than 10,000 megawatts of nuclear power, making it one of the nation’s leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 14,000 employees.