Entergy Appeals Regulators' Suspension of Rate Hike

JUNE 14, 2006 - Posted at 7:56 a.m. CST

LITTLE ROCK (AP) - Entergy Arkansas is appealing state

regulators' decision to suspend a rate hike that would increase

average bills for its customers by nearly 10 percent. The utility

says it also plans to seek an increase in base rates later this


The state's largest electricity provider asked the Arkansas

Court of Appeals last week to overturn the Arkansas Public Service

Commission's suspension of its rate increase.

On March 15, Entergy filed for the increase with the commission,

saying it was reimbursement of fuel and purchase power costs in

2005 and projected for 2006. The charge would be listed on bills as

a ``fuel and purchased power cost,'' and the utility said it would

not profit from the hike. Entergy Arkansas said a typical

residential customer, using about 1,000 kilowatt hours of

electricity a month, would see a nine dollar and 27 cent increase

in bills.

But on March 31st, the commission suspended the rate increase,

which was to go into effect in April. In suspending the increase,

the commission said the nine-point-nine percent hike combined with

a six percent increase in October would not be in the public


Entergy Arkansas also last week filed notice that in August it

will seek an increase in its base rates for the first time since

1985. Entergy Spokesman James Thompson said today the base rate

increase will reflect a pending cost of service study, so it's

unclear how much of a rate hike the company will seek.