Arkansas PSC gives Entergy Arkansas $81 million rate increase; company had sought $179 million | Arkansas Blog

Friday, January 17, 2014

Arkansas PSC gives Entergy Arkansas $81 million rate increase; company had sought $179 million

Posted By on Fri, Jan 17, 2014 at 4:40 PM

Idle talk at the Capitol recently has included a professed desire by some legislators to rein in the state Public Service Commission in some fashion..

Huh?

I think I just found the explanation. The talk is among legislators well-oiled by the Entergy lobby, now smarting over a recent regulatory decision.

On Dec. 30 (a very slow time as I recall and that perhaps explains the lack of press notice), the PSC issued its decision in an Entergy Arkansas general rate case. The company had started out talking about a need for an additional $179 million, but moved it down to $145 million. The PSC gave the company only $81 million.

And, what's more, the PSC rejected — again — the company's effort to put a fat stock incentive plan for top executives (making more than $255,000) onto ratepayers, rather than shareholders. This took a chunk of money, about $15 million, away from the company's potential rate base. You can read it all here. Said the PSC:

The Commission denies EAI’s request to recover 100% of incentive pay and stock options for its employees from Arkansas ratepayers, and finds that EAI and Staff have failed to show that short-term, long-term, and stock-based incentive compensation provides ratepayer benefits justifying 100% inclusion in rates. 

The company wanted a 10.4 percent return on equity. The PSC gave them 9.3 percent. The PSC reaffirmed the ruling Jan. 9.

Rates won't go up, because of an unrelated development.

Entergy customers will see an average 5 percent rate decrease because of the benefit from discontinued payments once required of Entergy in the now-defunct system agreement among Entergy operating companies in four states. The Federal Energy Regulatory Commission-ordered payments will cease as Entergy Arkansas operates independently and works with a power pool to obtain electricity. John Bethel, director of the PSC staff, said the overall impact will mean a 4.9 percent rate reduction for residential customers specifically.

The rate case alone would have raised rates 8 percent if not for the offset from the defunct system payments.

Entergy now must file specific rates to implement the order. Customer rates won't change until they are filed. The company also has until Jan. 30 to ask for a rehearing of the original order.


Tags: , , ,

From the ArkTimes store

Favorite

Comments (5)

Showing 1-5 of 5

Add a comment

 
Subscribe to this thread:
Showing 1-5 of 5

Add a comment

More by Max Brantley

  • Police identify three dead in Birchwood

    Police still have not release details about the apparent slaying Sunday of two children and suicide of the man who killed them on Birchwood Drive in West Little Rock. But the court record of a man who gave the address of the home where the dead were found indicates past episodes of domestic violence.
    • Aug 21, 2017
  • University of Texas removes Confederate statues

    Confederate statuary was removed overnight from a prominent spot on the University of Texas campus because they symbolize white supremacy and neo-Nazism, the university president said.
    • Aug 21, 2017
  • Eclipse day. Woodstock?

    I was amused by the excitement of a NASA scientist over today's eclipse, as reported by CNN.
    • Aug 21, 2017
  • More »

Readers also liked…

  • Judge Griffen: Why black lives matter

    Another few words from Judge Wendell Griffen growing from the controversy over the sale of Black Lives Matter T-shirts at the state black history museum — removed by the administration and restored after protests from Griffen and others stirred by a story in the Arkansas Times:
    • Mar 13, 2016
  • Presidential thriller, co-author Bill Clinton, coming to bookstores in 2018

    June 2018 is the expected publication date for a novel collaboration by former President Bill Clinton and crime writer James Patterson.
    • May 9, 2017
  • More on how highways were used to wipe out "blight" of non-white neighborhoods

    Vox, a news website that concerns itself with energy and other issues, has a fine piece, including before and after images, on the history of the U.S. interstate system and why roads were built through the middle of cities (unless people of influence stopped them — see Manhattan, San Francisco and Washington, D.C.)
    • Mar 22, 2016

Most Shared

  • Lynchings hidden in the history of the Hot Springs Confederate monument

    Hot Springs twice erupted into the kind of violence that has its roots in the issues left unresolved by the Civil War, and both times, it happened right where that monument to Confederate soldiers stands today.
  • Take yourself there: Mavis Staples coming to LR for Central High performance

    Gospel and R&B singer and civil rights activist Mavis Staples, who has been inspiring fans with gospel-inflected freedom songs like "I'll Take You There" and "March Up Freedom's Highway" and the poignant "Oh What a Feeling" will come to Little Rock for the commemoration of the 60th anniversary of the desegregation of Central High.
  • Klan's president

    Everything that Donald Trump does — make that everything that he says — is calculated to thrill his lustiest disciples. But he is discovering that what was brilliant for a politician is a miscalculation for a president, because it deepens the chasm between him and most Americans.
  • On Charlottesville

    Watching the Charlottesville spectacle from halfway across the country, I confess that my first instinct was to raillery. Vanilla ISIS, somebody called this mob of would-be Nazis. A parade of love-deprived nerds marching bravely out of their parents' basements carrying tiki torches from Home Depot.

Most Viewed

  • Eclipse day. Woodstock?

    I was amused by the excitement of a NASA scientist over today's eclipse, as reported by CNN.
  • University of Texas removes Confederate statues

    Confederate statuary was removed overnight from a prominent spot on the University of Texas campus because they symbolize white supremacy and neo-Nazism, the university president said.
  • Open line and Civil War update

    More Confederacy defenders were on hand in Bentonville against imagined threats to a one of hte Confederate statues put up long after the Civil War to spin a narrative about the noble Lost Cause.
  • Police still withholding identification on three dead in Birchwood

    Police still have not release details about the apparent slaying Sunday of two children and suicide of the man who killed them on Birchwood Drive in West Little Rock. But the court record of a man who gave the address of the home where the dead were found indicates past episodes of domestic violence.
  • Three dead in WLR

    Three dead in suspected double murder-suicide in West Little Rock.

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation