The company, in a filing with the Arkansas Public Service Commission, informed that the reduced fuel-cost portion would be reflected in the customer’s electric bills that is expected to vary from 1.552 cents to 1.206 cents per kWh.
The company stated that the monthly electricity bills of the residential customer, using 1,000 kWh-hour, would be reduced by $3.46, that means to $106.71 from $110.17. The price of purchased power is based on the price of natural gas.
Hugh McDonald, president and chief executive officer of Entergy Arkansas, said: “Fuel is a major component of a monthly electric bill, and natural gas prices are down enough that we’re able to lower bills now.”
From 2008 till year-to-date May 2009, there is an average decrease in the gas rates from $9.07/MMBtu to $4.34/MMBtu. The fall of gas rates has resulted in an overall collection of around $75m, which the company, through the electric rate reduction, would return to its customers with interest .
The company transmits around 90% of electricity to its customers which is generated 65% from emission-free nuclear, 22% from coal, 1% from hydro generating plants, and the remaining comes from natural gas generating plants.
