Arkansas AG, Entergy reach settlement for lower increase in rates than originally proposed

Ark. AG, Entergy propose lower rate increase

LITTLE ROCK, Ark. — Entergy Arkansas and Attorney General Dustin McDaniel on Monday asked state regulators to approve a $73.8 million base rate hike after they agreed to cut the utility’s original rate increase proposal by nearly $150 million.

Despite the increase, state and Entergy officials said the typical residential bill will decrease by about $20 a month because of a drop in other costs.

McDaniel and Entergy submitted the settlement to the Public Service Commission, which is scheduled to hold hearings on the utility’s proposed rate hike later this month. Entergy in September had asked for a $223 million rate hike, but McDaniel said his office had negotiated changes in the proposal.

Entergy Arkansas provides electricity to 684,000 customers in 63 counties.

The base rate increase is more than offset by decreases in other parts of customers’ bills, including a drop in the price of natural gas and the drop in the cost of a multi-state system agreement.

McDaniel and Entergy officials say the typical residential monthly bill of 1,000 kilowatt-hours under the proposal will decrease from $110.03 to $89.21. Under the original rate hike proposal, the monthly bill would have been $96.79.

“I think it’s very exciting to think that while this nominal rate increase is included, a homeowner this summer should see an 18 percent reduction overall in their bill,” McDaniel told reporters in a conference call to announce the agreement. “I think that is very welcome news in tough economic times.”

Entergy officials said they were happy to reach the agreement and hopeful that it would be approved by the commission.

“A settlement is always preferable to arduous rate case hearings and contested hearings,” Entergy Arkansas spokesman Dan Daugherty said.