LITTLE ROCK, AR (KAIT) - A nearly half-billion dollar rate reduction may be headed to Entergy Arkansas customers statewide as early as this spring, officials said Wednesday.
The utility filed paperwork with the Arkansas Public Service Commission for a plan to provide customers $466 million in benefits on their bill due to the federal Tax Cuts and Jobs Act.
"Because of the lower corporate tax rate, some of Entergy Arkansas' future tax obligations, which are a component of customers' rates, have been significantly reduced. To provide this benefit as quickly as possible, Entergy Arkansas is proposing to provide bill reductions beginning in April of this year," the company said in a statement.
According to Entergy Arkansas, the average residential customer will see a $20 a month savings per every 1,000 kWh consumed from April 2018 to December 2019 while business customers will see bill reductions as well.
In a statement, Gov. Asa Hutchinson said the rate reduction will benefit Arkansans.
"As you know, last December, Congress passed and President Trump signed into law a comprehensive tax reform package. I am pleased to note that Entergy has filed for regulatory approval of a plan to pass through to Arkansas consumers $466 million in reduced tax as a result of the tax reform act," Hutchinson said. "This will result in substantive savings for residential customers each month upon regulatory approval. I applaud Entergy Arkansas' leadership for their decision and I look forward to swift regulatory approval of this proposal."
The company has 700,000 customers in 63 counties in the state.