Know Your Power: Understanding Your Utility Bill in Arkansas
Ever looked at your electric bill and thought, "What am I actually paying for?" Let's break it down.
First, utility companies in Arkansas can't just raise rates whenever they want. If they want to change what customers pay, they have to make their case to the Arkansas Public Service Commission. The Commission reviews the numbers, considers public input, and decides whether the proposed rates are fair.
Let's look at an Arkansas residential electric bill.
Every Entergy Arkansas customer will see a similar bill: customer charge (a flat fee), energy charge (fluctuates based on energy used and costs to operate the system), followed by riders such as the Formula Rate Plan, Tax Adjustment and Generating Arkansas Jobs Act. Riders are extra charges or credits separate from your standard base rate, used to cover specific programs or costs.
Fuel charges will also fluctuate and differ person to person, as the cost of fuel changes and the charge is based on your energy usage. Municipal franchise adjustment and taxes will differ based on your location.
So why doesn't your bill look the same every month? It could be because fuel costs changed, your billing period was a little longer or shorter, or you used more power during periods of high demand.
While you can't control what utilities charge, you can control how efficiently you use electricity. Some easy ways to increase energy efficiency in your home (and/or decrease your monthly electric bill!) include:
Adjust your thermostat. Keeping your indoor temperature higher during the summer helps your HVAC system from working harder - and using more energy.
Close windows and blinds.
Work with an energy auditor to assess your home or building for air leaks, ventilation issues, and to provide other recommendations for avoiding energy waste.
Unplug electronics when not in use. Electronics that are still in “standby” mode can still use electricity.
Understanding your bill helps you identify where your energy dollars are going, make smarter energy choices, and find opportunities to lower your monthly costs. Interested in making a bigger impact on not just your bill, but also your neighbors’ and hundreds of thousands of other Arkansans? Consider ways to engage the Arkansas Public Service Commission, which ultimately decides utility rates and rule making.