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Entergy Arkansas seeks to pass along $466M in tax savings to customers

Entergy Arkansas Inc. is seeking approval from Arkansas regulators to pass on about $466 million in tax reform savings to its retail customers.

The Entergy Corp. subsidiary plans to return retail customer benefit through a tax adjustment rider beginning on the April bill. Entergy Arkansas has an authorized retail revenue requirement of $1.28 billion.

"The tax reduction will allow us to provide substantial bill credits to all customers for a significant period of time," Entergy Arkansas President and CEO Rick Riley said in a Feb. 28 statement.

The company proposed a 21-month refund period for residential customers, compared to a nine-month refund period for other rate classes, to avoid a potential rate shock when the rider expires, according to the Feb. 27 filing.

The proposed return period for residential customers will result in a bill reduction of about $20.35 per month per 1,000 kWh of usage. The tariff change will affect 592,370 residential customers.

Entergy Arkansas expects to file a true-up calculation on or before Dec. 1, 2019, using final unprotected excess accumulated deferred income tax.

The company said other effects of the tax reform are being considered and those benefits will be reflected in future rate changes. (Arkansas Public Service Commission Docket No. 18-014-TF)