Little Rock, Ark. – Entergy Arkansas, Inc. today announced a rate reduction effective September 1 as a result of declining fuel costs. The reduction will result in savings of over three percent per month for residential customers.

In a filing with the Arkansas Public Service Commission, Entergy Arkansas said it will reduce the fuel-cost portion of customers’ monthly electric bills from 1.552 cents per kWh to 1.206 cents per kWh. A typical 1,000 kWh-hour residential customer’s bill will drop from $110.17 to $106.71, a decrease of $3.46.

“We are always pleased to be able to pass fuel cost savings on to our customers,” said Hugh McDonald, president and chief executive officer, Entergy Arkansas, Inc. “Fuel is a major component of a monthly electric bill, and natural gas prices are down enough that we’re able to lower bills now.”

The fuel-cost reduction announced by Entergy Arkansas today is prompted in large part by a significant decline in natural gas prices in recent months and projected future natural gas prices for the remainder of 2009. Gas prices have fallen from an average of $9.07/MMBtu in 2008 to $4.34/MMBtu year-to-date May 2009. This has resulted in an over-collection of approximately $75 million through May. This over-collection will be returned to customers with interest through this reduced fuel rate.

About 90 percent of electricity supplied to Entergy Arkansas’ customers in a typical year comes from stable and low-cost fuel sources made up of 65 percent emission-free nuclear, 22 percent coal and 1 percent hydro generating plants. The balance comes from natural gas generating plants that are cycled up and down each day to match changes in customers’ load. The natural gas plants include the recently acquired Ouachita Plant and plants from which Entergy Arkansas buys power on the wholesale market. The price of purchased power is largely set by the price of natural gas.

Entergy Arkansas collects fuel and purchased power costs from its customers through the Energy Cost Recovery Rider (Rider ECR), which appears as a separate line item, Fuel & Purchased Power, on customer bills. These costs are for fuel that the company burns in its power plants to make electricity and for electricity that the company buys from other generators when it is less expensive than generating its own power.

The Fuel and Purchased Power rider is normally adjusted once annually in April. However, if the amount that Entergy Arkansas collects for fuel and purchased power is 10 percent over or under the annual amount projected to be collected, an interim adjustment can be proposed to reduce the size of the over or under-collected amount calculated in April.

Entergy Arkansas encourages its customers to take advantage of the many bill management options – Level Billing, Automatic Monthly Payments and Pick-A-Date – which eliminate seasonal fluctuations in electricity bills. For details or questions about bills, call 1-800-ENTERGY (1-800-368-3749) or go to entergy.com.

Entergy Arkansas, Inc. provides electricity to almost 684,000 customers in 63 counties. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas.

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