3/31/2010 Entergy Arkansas Rates to Decrease More Than 15 Percent in 2010

Little Rock, Ark. – Entergy Arkansas, Inc. residential customers will see a more significant drop in electricity rates than originally projected.

Company officials announced today that even if the company is granted the full increase in base rates that it has requested of the Arkansas Public Service Commission, Entergy Arkansas’ residential customers will still experience an overall decrease in rates of more than 15 percent on average this summer compared to last summer.

Last month the company projected a 10 percent decrease in residential bills. The decrease is now projected to be more than 15 percent based on some downward adjustments the company made in the amount of the base rate request.

The reduction in electricity rates is the result of a combination of lower fuel costs in 2009, continued efficient operation of power plants, and a sizeable reduction in the amount collected in the line item on customer bills described as “FERC-Imposed Payment.”

The net effect of both rate decreases and Entergy Arkansas’ requested $168.6 million base rate increase will result in a typical residential bill for 1,000 kilowatt hours of electricity dropping from $110 in July 2009 to approximately $93 per month beginning with the July billing cycle, a reduction of almost $17 per month. The resulting bills will be roughly equivalent to bills customers paid in 1998.

“While our customers work hard to conserve energy and pay their bills, at Entergy Arkansas we are also working hard to keep our costs down and help customers save,” said Hugh McDonald, president and chief executive officer, Entergy Arkansas, Inc.

Residential customers saw a reduction of almost $4 per month in 2009 from July to September. Customers will see another reduction of over $3 beginning in April as a downward adjustment to the fuel and purchased power part of the bill, shown on electric bills as “Fuel and Purchased Power.” In July, residential customers will see another decrease of $9 as a result of a reduction in the required payments by Entergy Arkansas to other Entergy operating companies. This charge appears on bills as “FERC-Imposed Payment.”

Entergy Arkansas filed with the APSC in September for a base rate increase. The company has not had a base rate increase in more than 25 years.

This requested increase of $168.6 million would include the costs of the company’s 2008 purchase of the Ouachita Power facility, and over $570 million of investment in transmission, distribution and generation utility infrastructure over the last three years. The base rate increase is necessary for Entergy Arkansas to continue to provide reliable service to its customers in Arkansas.

“I recognize that economic times are difficult, and we understand the concern about the impact of the company’s request on customers’ bills,” said McDonald. “Fortunately, the timing of this increase coincides with a larger decrease resulting in our customers spending less on their electric bill beginning this July during high bill season. In addition, the company must have the financial capability to be able to provide reliable service and make the necessary investments to prepare for operation after Entergy Arkansas terminates its participation in the Entergy System Agreement in December of 2013.” 

Entergy Arkansas, Inc. provides electricity to almost 687,000 customers in 63 counties. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas.