LITTLE ROCK, Ark. – Entergy Arkansas today made a filing with the Arkansas Public Service Commission to establish new base rates effective January 2027. Residential customers are expected to see minimal change to their monthly bills as the company introduces new rate structures to reduce costs, increase efficiency and offer innovative bill solutions to keep power affordable for all customers.
These options reflect Entergy Arkansas’s commitment to flexibility, customer choice and cost control, and represent a customizing of rates rather than simply a rate increase. They include:
- An optional time-of-use rate that provides residential customers the opportunity to lower bills by shifting some energy use to lower-cost hours.
- Low-income rates that provide a 50% discount on the customer charge for more than 113,000 households that qualify for the Low Income Home Energy Assistance Program.
- A rate schedule tailored specifically for agricultural customers, recognizing the unique and seasonal energy needs of Arkansas’s farming community.
Bill impacts will vary based on type of customer, but the company’s overall retail rate increase is less than 2% for all rate classes combined. A household using 1,000 kW of power would see a less than 1% increase, about $1.16 on their monthly bill. For commercial and industrial customers, actual bill impacts would depend on usage characteristics such as size and load factor.
“Thanks to the foresight of Arkansas legislators and the Arkansas Public Service Commission in approving the formula rate plan structure, this filing represents a reset of base rates instead of a significant rate increase,” said Laura Landreaux, Entergy Arkansas president and CEO. “It’s designed to maintain affordability, support continued economic development and allow us to make steady investments in our grid while delivering safe, reliable power with minimal impact for the majority of our customers.”
A regulatory rate review is a comprehensive review of a utility’s base rates presented to the Arkansas Public Service Commission with detailed evidence about its costs, investments and revenue needs. Entergy Arkansas has been operating under a formula rate plan since 2016. A formula rate plan allows for annual adjustments that help shield customers from rate volatility and makes way for the company to keep this rate review impact low despite rising costs. Entergy Arkansas’s rates are currently about 22% below the national average with a continued commitment to keep rates low.
Entergy Arkansas also plans to file a separate Generating Arkansas Jobs Act Rider annual update next month to support long-term investments tied to statewide economic and job growth. The combined total rate change between the rider and the rate review is expected to be at or below prior formula rate plan rate changes and also maintain Entergy Arkansas’s competitive position with rates well below the national average.
Customer growth in Arkansas continues to create meaningful long-term benefits
Anticipated revenue from new large customers could further lower rates in the coming years. Large-scale economic development projects such as these help spread the cost of operating and maintaining the grid over a wider customer base, driving down electricity prices for all customers.
For example, Entergy Arkansas has announced up to $1.7 billion in savings for its customers thanks to the newly announced Google and AVAIO data center projects. These projects cover energy costs associated with powering their new facilities, and Google has agreed to support the construction of a new 600-megawatt solar and 350-megawatt battery facility that will further diversify the company’s power portfolio and from which all Entergy Arkansas customers will receive power. Google has also announced a $25 million Energy Impact Fund to support home weatherization, innovative energy efficiency technology and energy workforce development in Crittenden County and surrounding communities.
Such large-scale economic development projects support the four pillars of the company’s Next Generation Arkansas vision: “Better Power,” “More power,” “Job Power,” and “Affordable Power.” Under the “Better Power” commitment, the company’s initial goal is to cut one of every three outages. To support that goal, Entergy Arkansas is increasing vegetation management investments that will keep power lines clear; performing reliability improvement projects across the state; and deploying new, advanced technology tools that will help spot problems faster, prevent challenges and improve power quality for decades to come.
“Arkansas has been our home for more than 110 years, and many of our nearly 3,000 employees across our service territory are native to this great state and live in the communities we serve,” Landreaux said. “We are committed to making smart investments in our system, keeping electricity affordable for Arkansas families and businesses, and supporting statewide growth across our shared communities.”
About Entergy Arkansas
Entergy Arkansas provides electricity to approximately 735,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation. Entergy produces, transmits and distributes electricity to power life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi and Texas. We’re investing for growth and improved reliability and resilience of our energy system while working to keep energy rates affordable for our customers. We’re also investing in cleaner energy generation like modern natural gas, nuclear and renewable energy. A nationally recognized leader in sustainability and corporate citizenship, we deliver more than $100 million in economic benefits each year to the communities we serve through philanthropy, volunteerism and advocacy. Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. Learn more at EntergyArkansas.com and connect with @EntergyARK on social media.
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Lamor Williams
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