By Roby Brock
Entergy Arkansas said it will file for a rate increase after this summer’s unusually hot weather and rising natural gas prices, even though the state’s largest electric utility recently lowered its rates.
Calling this year, “one of the hottest summers in the state’s history,” Entergy officials said that a power purchase rate increase could affect an average residential customer’s bill by less than $5 a month, if approved by the state Public Service Commission.
A residential customer using 1,000 kilowatt-hours will pay $90.70 starting October 1. If approved, the rates will remain in effect until the first billing cycle in April 2011, when any additional fuel adjustments would be made, the company said.
On July 1, new rates had kicked in to lower Entergy customer bills by 22 percent. At the time, system efficiencies from nuclear power and reduced natural gas costs had paved the way for the utility to lower bills.
Walmart reorganizes U.S. store approach
With sluggish U.S. same-store sales for more than a year, Walmart reshuffled its top merchandising operations by naming four new product heads to run its American stores.
In a Sept. 3 memo, Walmart’s U.S. CEO Bill Simon realigned four merchandising divisions and appointed executive vice-presidents to head them.
The four merchandising units are general merchandise and replenishment, food, softlines and a group that includes consumables, health and wellness and walmart.com.
At an analysts’ meeting this week, Simon said that back-to-school sales appeared delayed by shoppers. He also said he expected an “aggressive” holiday shopping season with customers focused on essentials like socks and underwear.
Wal-Mart has reported five consecutive quarters of falling U.S. same-store sales, a key indicator of corporate health in the retail industry.
Bank of the Ozark buys Florida bank
Little Rock-based Bank of the Ozarks acquired Horizon Bank of Bradenton, Florida after state and federal regulators closed the troubled financial institution.
As of June 30, Horizon Bank had approximately $187.8 million in total assets and $164.6 million in total deposits. The Little Rock bank said it agreed to purchase essentially all of the failed bank’s assets.
In the past year, Bank of the Ozarks has bought two banks with branches in South Carolina, North Carolina, Georgia and Alabama.
Murphy Oil acquires ethanol plant in Texas
Murphy Oil has purchased an ethanol plant near Amarillo, Texas that was stalled due to construction delays and bankruptcy from the original builder, Panda Ethanol.
The El Dorado-based oil and gas company said it would finish construction and should be pumping fuel within a year from the facility. Terms of the deal were not disclosed.
The plant should be capable of producing 115 million gallons of ethanol per year, which in combination with a North Dakota plant could meet up to 50 percent of Murphy’s needs. The El Dorado firm will use the ethanol to blend with its regular gasolines sold at more than 1,000 retail outlets nationwide.
Arkansas soybean farmers could be in for heckuva ride
The Arkansas Soybean Board said that Ford Motor Co. will feature bio-based polyurethane foam in 100 percent of its seat cushions, headrests and headliners by the end of 2010.
The use of soy foam in automotive applications could boost a new market for Arkansas and American soybean farmers. Ford is pursuing the initiative to eliminate its dependence on petroleum-based products, which could lead to greater independence from foreign oil.
Arkansas currently ranks 10th in the nation in soybean production, producing 122 million bushels annually valued at more than $1 billion.
Arkansas soybeans are grown by thousands of Arkansas farmers in 50 of the state’s 75 counties.
Realtors association chief resigns
At its annual convention in Rogers, Arkansas Realtors Association CEO Andy Schaus submitted his resignation. ARA Chief Operating Officer Miki Bass will serve as interim CEO until a replacement is found.
Also, the ARA announced it would up its annual membership dues from $100 to $160 — a 60 percent increase. The association says that currently there are 7,337 realtors in Arkansas, but it expects that number to drop to 6,613 members in 2013‚ a decrease of nearly 10 percent.
Southland, Oaklawn record big gambling months in August
Oaklawn and Southland racetracks recorded huge months of electronic games of skill (EGS) wagers, but fell short of their biggest months in gambling history.
For the month of August, West Memphis-based Southland Park Racing & Gaming saw EGS wagers hit $56,588,487, a new second highest total in the racetrack’s history. Southland topped $57.7 million in EGS wagers in March of this year, its highest month ever.
Hot Springs-based Oaklawn Racing & Gaming had its fourth largest month of EGS wagers in August with $37,452,737 bet on electronic blackjack, poker and other games.
Cumulatively, the two tracks reported total EGS wagers of $94,041,224 for August. Year-to-date, the two tracks EGS wagers have topped $723.8 million.
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Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net.
