Entergy Arkansas Inc. filed a plan Tuesday to pass along to customers $466 million in benefits from the federal tax cut Congress approved last year.
The move comes about seven weeks after Gov. Asa Hutchinson urged utilities "to pass the benefit of the corporate tax cut to Arkansas families and businesses in the form of lower utility rates." The Arkansas Public Service Commission began proceedings on how utilities might do so the following day.
"Because of the lower federal corporate tax rate, some of Entergy Arkansas' future tax obligations, which are a component of customers' rates, have been significantly reduced," the company said in a news release. "To provide this benefit to customers as quickly as possible, Entergy is proposing to provide bill reductions beginning in April of this year."
The company said that, if approved by the Arkansas Public Service Commission, the plan would result in savings of an estimated $20 per month for every 1000 kWh consumed from April to December 2019 by residential customers.
Entergy said business customers would also see "significant bill reductions."
Rick Riley, Entergy Arkansas president and CEO, noted Hutchinson's desire to see tax savings passed on to utility customers. He said the company worked with stakeholders to devise the plan.
"The tax reduction will allow us to provide substantial bill credits to all customers for a significant period of time," he said.
Hutchinson applauded Entergy's plan.
"This will result in substantive savings for residential customers each month upon regulatory approval," Hutchinson said. "I applaud Entergy Arkansas' leadership for their decision, and I look forward to swift regulatory approval of this proposal."
Entergy Arkansas provides electricity to 700,000 customers in 63 counties. Entergy Corp., is an integrated energy company, owns and operates power plants with 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. With about $11 billion in annual revenue, Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.