Entergy Arkansas seeks $223.2 million rate increase
by September 4, 2009 4:36 pm 87 views
Entergy Arkansas on Friday afternoon filed for a base rate increase of $223.2 million for its Arkansas system that provides electricity to about 700,000 customers in 63 of Arkansas’ 75 counties.
The company said in its filing with the Arkansas Public Service Commission that base rates had not increased since 1985.
Entergy does not provide electric service to most parts of the Fort Smith/Van Buren area. However, the company’s rate case likely will be watched close by other electric utility providers in the state, and watched close by companies based in the Fort Smith metro area that have operations in Entergy service areas.
The company also estimates the base rate increase will not raise customer bills in the long term. A statement from Entergy President Hugh McDonald includes a chart showing the average customer bill (1,000 kwh per month) was $87.85 in December 1986, $110.03 in July 2009, and is estimated to be $102.10 in July 2010.
“The need to adjust base rates to reflect the increase in the Company’s investment in utility generation, transmission and distribution facilities, additional depreciation expense, the 2009 ice storm restoration costs, and the increased cost of operating and
maintaining EAl’s facilities,” McDonald noted in the statement.
Part of that investment will require the company to add up to 800 MW of power by 2013 to meet customer load requirements.
Specifically, the company also outlined plans to spend more than $600 million on sulfur dioxide and nitrogen oxide emission filters at its White Bluff generation facility.
“In addition, the Company’s older natural gas-fired plants — representing about 1,200 MW of the Company’s existing fleet of more than 5,200 MW of capacity — are all more than 39 years old and will require additional investment to ensure that they can operate reliably when called upon,” McDonald said in the statement.
The company also estimates spending more than $400 million during the next six years to upgrade its transmission grid.