Electricity utility Entergy Arkansas will reduce residential customer rates by 4% starting in April as a result of a lower fuel rate.
A typical residential customer using 1,000 kilowatt-hours of electricity can expect bills to decrease by $4.10 per month.
“We know that every little bit helps, and we’re pleased that our fuel rate is decreasing again this year,” said Laura Landreaux, president and CEO of Entergy Arkansas. “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 bill decrease can be attributed to lower gas prices, projects that have improved performance of Arkansas Nuclear One and transmission upgrades that have helped to alleviate congestion on the electric grid. Every spring, Entergy Arkansas files a fuel and purchased power cost adjustment, or rider, with the Arkansas Public Service Commission. The rider is one of several components that comprise a customer’s bill. Energy Arkansas uses the rider to recover the cost of fuel used in power plants and power purchased from other sources.
This decrease follows a $15 increase in monthly bills that started in January as a result of the ending of the federal tax credit and a $4.20 per month bill reduction that took effect in April 2019.
Entergy Arkansas, a subsidiary of New Orleans-based Entergy Corp., provides electricity to about 700,000 customers in 63 counties.