Entergy files rate reduction of 4% after cost adjustment

Entergy Arkansas will reduce customers’ bills by about 4% beginning in April to adjust for lower rates the electric utility pays to buy fuel. That means an average monthly rate cut of about $4 for residential customers, Entergy announced Monday.

The rate reductions are required by the Arkansas Public Service Commission to keep the utility’s charges in line with fuel rates.

“We know that every little bit helps, and we’re pleased that our fuel rate is decreasing again this year,” Entergy Arkansas President and Chief Executive Officer Laura Landreaux said in a

statement.

“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.”

Every Spring, Entergy Arkansas files a “fuel and purchased power cost” adjustment, or rider, with the Arkansas commission.

The fuel rider outlines how Entergy Arkansas recovers the costs of fuel used in power plants and power purchased from other sources. That power is used to generate electricity for Arkansas homes and businesses.

The new rate reduces the bill for a typical residential customer using 1,000 kilowatt hours of electricity by $4.10. Last April, Entergy also reduced rates by $4.20 per month after the annual review.

The fuel-cost reduction is attributable to lower natural gas prices, projects that have improved performance of Arkansas Nuclear One in Russellville and transmission upgrades that have helped alleviate congestion on the electric grid, Entergy said.

Over the weekend, Entergy announced it is suspending customer disconnections for the next 30 days for any customers who are unable to pay their bills. The company said it may extend the 30-day period if necessary.

The policy was updated to grant economic relief to customers affected by the coronavirus outbreak.

“Our operations and facilities remain safe, secure and stable, and there is currently no impact on the delivery of energy to our customers,” Entergy said in a statement announcing the policy.

Entergy Arkansas, the state’s largest electric utility, provides power to 700,000 customers in 63 counties. The company also serves more than 2 million customers in Louisiana, Mississippi and Texas.