Entergy Arkansas requests rate hike, residential bills to rise by $1

Little Rock-based utility Entergy Arkansas said Friday (Feb. 27) that it is seeking a rate increase that will have a less than 1% impact on residential customers’ monthly bills for households using 1,000 kilowatts of electricity. The utility also noted that large-scale projects, such as data centers, could help lower rates.

Entergy filed the rate increase request on Friday with the Arkansas Public Service Commission that would include a new rate structure. If approved by the commission, the new rates would go into effect in January 2027.

Households using 1,000 kilowatts of power would see a less than 1% increase, about $1.16 on their monthly bill. The impact on the bills of commercial and industrial customers depends on usage. The overall retail rate increase would be less than 2% for all customers combined.

The new rate structure is expected to “reduce costs, increase efficiency, and offer innovative bill solutions to keep power affordable for all customers,” according to a news release. The new rate structure would include options that allow customers to customize their rates in the following ways:

• An optional time-of-use rate to allow residential customers the opportunity to lower bills by shifting some energy use to lower-cost hours.
• Low-income rates that provide a 50% discount on the customer charge for more than 113,000 households that qualify for the Low Income Home Energy Assistance Program.
• A rate schedule for agricultural customers that recognizes the unique and seasonal energy needs of Arkansas farmers.

“Thanks to the foresight of Arkansas legislators and the Arkansas Public Service Commission in approving the formula rate plan structure, this filing represents a reset of base rates instead of a significant rate increase,” said Laura Landreaux, Entergy Arkansas president and CEO. “It’s designed to maintain affordability, support continued economic development and allow us to make steady investments in our grid while delivering safe, reliable power with minimal impact for the majority of our customers.”

Next month, Entergy Arkansas plans to seek an additional rate change to support long-term investments in statewide economic and job growth. The combined total of the rate changes is “expected to be at or below prior formula rate plan rate changes and also maintain Entergy Arkansas’ competitive position with rates well below the national average,” the release shows.

Entergy Arkansas also noted that the expected revenue from new large customers could lower rates in the coming years. Large-scale development projects help spread the cost of operating and maintaining the grid across a wider customer base, reducing electricity prices for all customers.

The release shows that Entergy Arkansas has announced up to $1.7 billion in savings for its customers because of the planned Google and AVAIO data center projects. These projects cover energy costs associated with providing electricity for their new facilities, and Google plans to support the construction of a new 600-megawatt solar and 350-megawatt battery facility, diversifying the company’s power portfolio from which all Entergy Arkansas customers will receive power. Google also plans to invest $25 million in a fund to support home weatherization, energy-efficiency technology, and energy workforce development in Crittenden County and surrounding communities.

Entergy Arkansas is also working to reduce power outages, and to do so, it’s increasing investment in vegetation management to keep power lines clear, completing projects to improve reliability across the state, and using new technology to spot problems faster, prevent issues, and improve power quality.

“Arkansas has been our home for more than 110 years, and many of our nearly 3,000 employees across our service territory are native to this great state and live in the communities we serve,” Landreaux said. “We are committed to making smart investments in our system, keeping electricity affordable for Arkansas families and businesses, and supporting statewide growth across our shared communities.”

Entergy Arkansas, a subsidiary of New Orleans-based Entergy Corp., provides electricity to about 735,000 customers in 63 counties.

Shares of Entergy Corp. (NYSE: ETR) opened Friday at $105.75. During the past 52 weeks the share price has ranged between $107.18 and $75.57.