PSC Approves Entergy's Rate Hike Request

JUNE 28, 2006 - -Posted at 4:12 p.m. CST

LITTLE ROCK, AR - The Arkansas Public Service Commission today approved a request by Entergy Corporation to raise electric rates by 9.9 percent.  The increase goes into effect tomorrow.

The utility had originally hoped to implement the rate hike in April, but the commission suspended the increase as regulators looked into how the company sets rates for its 667,000 Arkansas customers.

The increase, approved after a hearing today, would cost the typical residential customer, one who uses about 1,000 kilowatts a month, an extra $9.27 per month.  Entergy says the increase is to cover the increased fuel costs.  The utility won't profit from the rate hike.

The staff of the PSC and the Arkansas Electric Energy Consumers, which represents the state's largest industrial electricity users, last week recommended that the commission allow the rate hike to go forward.  Arkansas Attorney General Mike Beebe recommended the commission deny the hike.

(The Associated Press contributed to this report.)