AUGUST 16, 2006 - Posted at 7:45 a.m. CDT
LITTLE ROCK, AR - A rate increase that would add $7.68 to the average bill of an Entergy Arkansas residential customer is being sought by the company, the state's largest supplier of electricty. The Public Service Commission was asked to approve the request to take effect September 14.
It would raise base rates by 7.5 percent, but the company predicted that average bills would increase 9.3 percent over the next year.
The increase is the first requested by Arkansas' largest electricity provider since 1985. The filing said the company was seeking the increase to cover a retail revenue deficiency of $150.4 million in base rates.
Entergy has almost 677,000 customers in 63 of Arkansas' 75 counties. The entire Entergy system has about 2.6 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
In testimony submitted to the commission, Entergy Arkansas CEO Hugh McDonald said the average residential bill would increase by $7.68 per month with the base increase. McDonald says the typical monthly residential bill is $102.77.