LITTLE ROCK —Entergy Arkansas says its decreasing fuel costs should result in a rate reduction that will mostly offset the impact of a rate increase it is seeking.

LITTLE ROCK —Entergy Arkansas says its decreasing fuel costs should result in a rate reduction that will mostly offset the impact of a rate increase it is seeking.


In a statement Monday, the utility said it will file its annual fuel and purchased power cost adjustment in March and is projecting that the effect will be a $7.11 reduction to the monthly bill of a residential customer using 1,000 kilowatt-hours of electricity.


Last year, Entergy asked the state Public Service Commission to approve a $167 million rate increase it said was needed because of improvements to its infrastructure and its purchase of one-fourth of a natural gas plant near El Dorado. The commission is now considering a proposed settlement that would raise rates by $133.6 million, which would cause a customer with a $100 monthly bill to see an increase to $108.30.


With the expected rate reduction of $7.11, a customer using 1,000 kilowatt-hours per month would see a net rate increase of about $1.30, the utility said.


"It takes careful planning and efficient operations to mitigate the bill impact to our customers," said Hugh McDonald, president and CEO of Entergy Arkansas. "Our customers are reaping the benefit of the current energy market, combined with our timely acquisitions of modern, efficient and clean-burning combined-cycle natural-gas plants. All these factors combine to allow their rates to remain significantly lower than the national and regional averages."


Entergy Arkansas provides electricity to about 700,000 customers in 63 counties. It is a subsidiary of Entergy Corp., which delivers electricity to 2.8 million customers in Arkansas, Louisiana, Mississippi and Texas.