LITTLE ROCK, Ark. – On Feb. 27, Entergy Arkansas, Inc. filed a plan to provide about $466 million in benefits to their customers as a result of the Tax Cuts and Job Act (TCJA).
The lower federal corporate tax rate has significantly reduced Entergy's future tax obligations, which are a component of customers' rates.
Since their tax rates have been lowered, Entergy is proposing to provide bill reductions to their customers beginning this April.
“When tax reform was passed, Governor Asa Hutchinson asked that the Arkansas Public Service Commission work with utilities to pass those benefits to customers as quickly as possible,” said Rick Riley, Entergy Arkansas president and CEO. "The tax reduction will allow us to provide substantial bill credits to all customers for a significant period of time.”
If the bill is approved by the Arkansas Public Service Commission (APSC), customers will:
- See bill credits beginning in April, which will mean lower summer bills which is when usage is usually higher.
- Residential customers will save an estimated $20 per month for every 1000kWh consumed from April 2018 to December 2019.
- Business customers will see bill reductions which will allow them to reinvest those savings in to their businesses.
Entergy says these are only a few of the expected benefits and that the APSC is currently exploring all of the other effects the tax reforms will have and how these will be reflected in future customer rates.