Entergy Corporation’s (ETR) utility subsidiary Entergy Arkansas has requested from the Arkansas Public Service Commission a $223 million hike in the base rate late last week. Entergy Arkansas supplies electricity to 684,000 customers spread across 63 counties in the state of Arkansas. The requested hike was to cover the cost of purchase of the Ouachita plant and restoration costs associated with the January 2009 ice storm in northern Arkansas. As per company estimations, this would raise the bill of an average residential customer with a monthly consumption of 1,000 kilowatt-hours by $7.86. Entergy Arkansas officials, however, feel that the actual burden would be much less. The improvement is expected to stem from lower fuel costs, which would improve on account of a decrease in natural gas prices. New Orleans-based Entergy is primarily engaged in electric power production and retail distribution of power. With 30,000MW of ...

Entergy Corporation’s (ETR) utility subsidiary Entergy Arkansas announced yesterday that it will reduce its retail electricity rates from September 1, 2009. New Orleans-based Entergy is primarily engaged in electric power production and retail distribution operations. The company owns and operates power plants with approximately 30,000MW of electricity generating capacity. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. With a cumulative capacity of 8,000MW, the company is the second largest nuclear power generator in the U.S. The curtailment in rates is for passing on the benefits of recent fall in natural gas prices to its customers. The company filed with the Arkansas Public Service Commission notifying the reduction of 0.346 cents per kilowatt-hour usage in the fuel-cost portion of electric bills to 1.206 cents.     As per company estimates this will reduce the average monthly bill of a typical residential ...

Columbus, Ohio-based American Electric Power Co. Inc. (AEP) took one on the chin when Moody’s downgraded its utility subsidiary Southwestern Electric Power Co.’s (SWEPCo) ratings this Monday. SWEPCo provides power to the states of Louisiana, Arkansas, East Texas and the Panhandle area of North Texas.

Moody’s downgraded SWEPCo’s long-term issuer and senior unsecured ratings from Baa1 to Baa3. However, the ratings outlook was revised to stable from being on watch for downgrade.

This is precariously close to being labeled as junk, since anything less than Baa is junk in Moody’s book. Since early 2009, Moody’s had placed SWEPCo on review for a possible downgrade on concerns over its financial health and risk over recovery of capital cost.

The nail in the coffin was an Arkansas Court of Appeals ruling on June 24, which reversed a 2007 approval of the construction of John W. Turk Jr. plant in Texarkana

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