Entergy Accuses Arkansas Regulators of Violating Law

April 8, 2006 - Posted at 12:37 p.m. CST

LITTLE ROCK (AP) _ Entergy Arkansas says state regulators

violated the law when they stopped a nine-point-nine percent rate

increase from taking effect April First while the state

investigates the need for additional money.

The utility says state law bars suspending rates without a

hearing except when the rate is a new one. The company asked the

state Public Service Commission to reconsider its decision.

Company officials say the nine-point-nine percent increase is

the ongoing rate mechanism the company uses to recover fuel and

power costs. They say delaying the increase will only mean even

higher electric bills for customers as the company expenses

accumulate with interest.

But a P-S-C order says the rate increase through an automatic

recovery process is unprecedented. The commission says that

increase would be on top of a six percent increase last fall and

the plan should first be justified in detail.

Entergy is the state's largest electric company. It has about

667-thousand customers in 63 of the state's 75 counties.

(Copyright 2006 by The Associated Press. All Rights Reserved.)