Arkansas News Bureau

LITTLE ROCK — Residential customers of Entergy Arkansas can expect lower electric rates this year even though Entergy is seeking an increase in base rates, the company said today.

A combination of lower fuel costs last year and a sizeable reduction in collections described on customer bills as “FERC-imposed payment” will result in lowering residential electric rates by 10 percent despite the company’s request for a $223 million base rate increase, Entergy said.

The company said a typical residential bill for 1,000 kilowatt hours of electricity will drop from $110 a month to about $97 per month beginning with the July billing cycle when the new base rates goes into effect.

Beginning next month, a reduction in the fuel adjustment and purchased power part of electric bills will lower typical residential bills by $3.24, the company said.

Entergy Arkansas President and CEO Hugh McDonald said in a news release that Entergy expects lower fuel prices and a reduction in the payments it pays to other utilities in the Entergy system to more than offset an increase in base rates.

“We are very pleased by these developments,” McDonald said. “Customers have been impacted by huge fuel costs over the past several years, and it is good news that Entergy Arkansas will be able to keep customer bills relatively low for the foreseeable future.”

Entergy is Arkansas’ largest electric utility, providing power to 684,000 customers in 63 counties.