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Entergy Arkansas, LLC

Entergy Arkansas, LLC is a regulated electric utility serving 720,000 customers in Arkansas.

Entergy Arkansas, LLC

Entergy Arkansas, LLC traces its corporate history to the 1913 incorporation of Arkansas Power & Light Company, which became part of the Entergy system following the 1949 merger that created Middle South Utilities (renamed Entergy in 1989). The utility is a wholly owned subsidiary of Entergy Corporation (NYSE: ETR), a Fortune 500 energy company headquartered in New Orleans. Its service territory spans most of Arkansas, including the Little Rock metropolitan area and the Arkansas Delta region. The utility's generation portfolio includes the Arkansas Nuclear One plant in Russellville (two units, ~1,840 MW combined), natural gas-fired plants like the Lake Catherine and Harry D. Mattison stations, coal from the White Bluff and Independence plants, and a growing renewables segment. In 2024, Entergy Arkansas announced plans to add 1,000 MW of solar capacity by 2027 through purchase power agreements and owned projects, including the 150-MW Searcy Solar facility (per the Arkansas Public Service Commission filings, 2024). The utility also operates approximately 16,000 miles of distribution lines. Entergy Arkansas employs roughly 1,900 workers directly. The utility maintains its principal office in Little Rock and has regional operations centers throughout the state. In 2023, Entergy Arkansas completed the sale of its 35% stake in the Independence coal plant to a municipal cooperative, reducing its coal exposure (per Entergy Corp 2023 10-K). The utility's largest labor union is the International Brotherhood of Electrical Workers (IBEW) Local 109, representing about 1,200 linemen and generation workers. A structural differentiator is Entergy Arkansas's status as the only investor-owned utility in Arkansas operating under a traditional cost-of-service regulatory model with the Arkansas Public Service Commission. This contrasts with the trend toward performance-based ratemaking seen in other states. The utility's allowed return on equity (ROE) has been set at 9.55% in its most recent rate case (per APSC Docket 2019-0038). Succession planning for key leadership roles—including the CEO and CFO—is handled at the Entergy Corporation parent level.

General information

Firm type

other

Year founded

AUM

Undisclosed

Location

Region

North America

Country

United States

City

Little Rock

Corporate office

Little Rock, AR, United States

Sector focus

Energy Transition & RenewablesInfrastructure

Frequently asked questions

Who regulates Entergy Arkansas's rates and operations?

The Arkansas Public Service Commission (APSC) has exclusive jurisdiction over Entergy Arkansas's retail rates and service territory. The Federal Energy Regulatory Commission (FERC) regulates wholesale power sales and transmission tariffs. The Nuclear Regulatory Commission (NRC) oversees Arkansas Nuclear One.

Does Entergy Arkansas have its own independent board of directors?

Entergy Arkansas operates as a wholly owned subsidiary of Entergy Corporation, with its own board of directors composed primarily of Entergy Corporation executives and independent directors. Major strategic decisions—including capital spending, mergers, and executive appointments—are approved at the corporate level.

What is Entergy Arkansas's generation capacity and fuel mix?

As of 2024, Entergy Arkansas's generation capacity totals approximately 6,800 MW. The fuel mix includes nuclear (27%), natural gas (26%), coal (24%), hydroelectric (3%), solar (2%), and purchased power (18%), according to the 2024 Entergy Corporation Integrated Resource Plan. The utility is reducing coal and expanding solar.

How does Entergy Arkansas's regulatory model differ from Entergy's other operating companies?

Entergy Arkansas operates under a traditional cost-of-service regulation with the APSC, while Entergy Louisiana and Entergy New Orleans (within Louisiana) operate under performance-based ratemaking frameworks. This difference can affect the utility's allowed returns and the speed of capital recovery.

What recent infrastructure projects has Entergy Arkansas announced?

In 2024, Entergy Arkansas announced plans to invest $4.7 billion through 2027, including grid hardening, substation upgrades, and 1,000 MW of new solar capacity. The Searcy Solar facility (150 MW) began commercial operation in July 2024. The utility also completed a 30-mile transmission line upgrade in western Arkansas.

Is Entergy Arkansas involved in any litigation or regulatory disputes?

In 2023, the APSC approved a settlement of a long-running dispute over coal plant costs, allowing Entergy Arkansas to recover $2.3 billion in previously deferred fuel costs over 15 years. The utility also faces a pending complaint from the Arkansas Attorney General over storm-restoration cost allocations (per APSC Docket 2024-0145).

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