Entergy Arkansas Proposes $1.16 Monthly Residential Rate Hike

Utility seeks first formal rate increase in over a decade to fund infrastructure upgrades

Published on Feb. 27, 2026

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Entergy Arkansas Inc. has submitted a rate increase request to the Arkansas Public Service Commission that would raise the average residential customer's electric bill by approximately $1.16 per month starting in January 2027. This marks the first time in over a decade that Entergy Arkansas has filed a formal rate case, as the company has previously relied on an annual 4% rate adjustment mechanism known as the formula rate plan.

Why it matters

The proposed rate increase is part of Entergy's efforts to fund significant infrastructure investments, including new natural gas and solar power generation facilities, to maintain reliability and support economic development in Arkansas. While the increase may impact customer affordability, Entergy says it is working to moderate the rate change and keep costs competitive.

The details

Entergy's overall requested retail rate increase across all customer classes is 1.92%. The company is also seeking to recover costs for three major projects: the Jefferson Power Station, Cypress Solar, and the Ironwood Power Station. These investments will add over 1,600 megawatts of new generation capacity to Entergy's system in Arkansas.

  • Entergy Arkansas submitted the rate increase request on Friday, February 27, 2026.
  • If approved, the new base rates would take effect in January 2027.
  • The Jefferson Power Station is scheduled to begin operations in 2029.
  • The Ironwood Power Station is scheduled to begin operations in 2028.
  • The Cypress Solar project is expected to be completed by the fourth quarter of 2028.

The players

Entergy Arkansas Inc.

A public utility company that provides electricity to around 735,000 customers in 63 counties across Arkansas.

Arkansas Public Service Commission

The state utility regulator that will review and decide on Entergy's rate increase request.

Lara Landreaux

President and Chief Executive Officer of Entergy Arkansas.

Google

A tech company that has partnered with Entergy on the Cypress Solar project, which will help power Google's $4 billion data center in West Memphis, Arkansas.

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What they’re saying

“For the past ten years (Entergy) has managed rates through its Formula Rate Plan and now must re-establish base rates and adjustments in order to continue with a new formula rate plan so that customers continue to see stable, predictable rate changes going forward.”

— Entergy Arkansas (Entergy Arkansas filing)

“(Entergy) is keenly aware of the need to moderate its requested rate change in order to help manage overall affordability for our customers, particularly as this rate change is falling in close proximity to the implementation of (Entergy's) Generating Arkansas Jobs Act Rider.”

— Lara Landreaux, President and Chief Executive Officer, Entergy Arkansas (Entergy Arkansas filing)

What’s next

The Arkansas Public Service Commission will review Entergy's rate increase request and make a decision in the coming months. If approved, the new rates would take effect in January 2027.

The takeaway

Entergy Arkansas is seeking to modernize its infrastructure and support economic development in the state, but is also working to balance those needs with customer affordability concerns. The proposed rate increase, while modest, reflects the utility's efforts to maintain reliability and competitiveness while managing the impact on ratepayers.