LITTLE ROCK, Ark. (News Release) — Here is some important information that will affect your Entergy Arkansas bill beginning in January 2020.
You may recall that in December of 2017 the United States Congress passed the Tax Cuts and Jobs Act. The new law lowered the federal tax rate of 35% to 21%, which resulted in Entergy Arkansas crediting customers’ bills with the goal of returning to all customers nearly $500 million in accumulated deferred income tax. For residential customers, the total amount to be returned was nearly $230 million.
We proposed at the time, and the Arkansas Public Service Commission agreed, that it would be in our customers’ best interest to spread the credit for residential customers over a 21-month period: April 2018 through December 2019. The result was a monthly credit of approximately $15 per 1,000 kilowatt hours (kWh). A typical residential customer consumes around 1,000 kWh a month. If you used more electricity, then your credit would be more.
This note is to remind you that the Tax Cuts and Jobs Act credits will expire at the end of this year, as required by the Commission-approved tariff. This will affect all bills going forward. Compared to December 2019 bills, there will be a change of about $15 per 1,000 kWh used.
Additionally, pending approval by the Commission, a nominal true-up of $0.91 per 1,000 kWh will be on residential bills for 12 months beginning in January. Over the previous 21 months, the company will have returned approximately $7 million more than the $230 million authorized. The true-up will account for the $7 million excess credit.
This is a good time to consider looking into improving your energy efficiency and learning more about how to conserve electricity, thus lowering your bill. We’d like to help with that.
Here are three things you can do:
- Look into Entergy Solutions, our suite of energy efficiency programs. Whether you live in a single-family home, an apartment or a manufactured home, we have programs that will save you money, with little or no cost to you.
- HERE for detailed information on your electricity usage and how you can benefit from the new technology.
- Study Circuit, our online resource for do-it-yourself energy efficiency improvements.
We want to keep you informed about issues that affect the quality and cost of the service we provide, and we hope you will find this information helpful. We appreciate your being an Entergy Arkansas customer.