Arkansas Electricity Rates: What to Know

Arkansas has some of the cheapest electricity in the country. As of late 2025, the average residential rate sits at roughly 12.3 cents per kilowatt-hour — about a third below the national average of 18 cents. Entergy Arkansas, the state's largest utility, averages closer to 11 cents, putting its customers roughly 22% below the typical American household on a per-kWh basis.

And yet the average Arkansas monthly bill is not nearly as low as you might expect. The typical Arkansas household burned through roughly 1,049 kWh per month in 2025, compared to a U.S. average of about 860 kWh. Combine heavy consumption with the state's hot, humid summers, widespread electric heating, and older housing stock, and the average monthly bill lands around $129. That is still below the national average, but it is not the bargain the cheap per-kWh rate would suggest. More importantly, the era of slow, predictable rate increases is ending. Entergy Arkansas just raised rates 4.54% in January. SWEPCO customers are absorbing a 13.8% increase. A wave of $12 billion in hyperscale data centers is about to slam into the state. And the Generating Arkansas Jobs Act of 2025 lets utilities start charging you for new power plants while they are still under construction. Here is what every Arkansas household needs to know to get ahead of what is coming.

How Arkansas's Electricity Market Works

Arkansas is a regulated electricity market. Unlike Texas next door, where residential customers can shop between dozens of retail electricity providers, Arkansas residents do not get to choose. You are served by whichever utility holds the franchise for your address, and your rates are set by the Arkansas Public Service Commission (APSC) — a three-member body appointed by the Governor.

The APSC regulates Arkansas's four investor-owned electric utilities, approving base rates, formula rate plan adjustments, fuel cost recovery, integrated resource plans, and major capital projects. It does not directly set rates for electric cooperatives or municipal utilities, which are governed by their own elected boards. But it does oversee service territories, consumer protection issues, and net metering rules that apply across the whole state.

Here is how Arkansas's utility landscape breaks down:

Utility Type	Regulation	Examples
Investor-Owned Utilities (IOUs)	APSC-regulated	Entergy Arkansas, SWEPCO, OG&E (Fort Smith area), Empire District/Liberty
Generation & Transmission Coop	Self-governing, federal oversight	Arkansas Electric Cooperative Corporation (AECC)
Distribution Cooperatives	Member-elected boards	17 distribution co-ops (First Electric, Ozarks, Craighead, etc.)
Municipal Utilities	Self-governing (city councils)	Conway Corporation, Jonesboro City Water and Light, North Little Rock Electric, Paragould Light Water & Cable

Arkansas does not have community choice aggregation, retail electricity shopping, or any form of consumer-level provider choice. Your options for lowering your bill center on efficiency, rate plan selection, rebate programs, and — if the math works — solar.

What Arkansans Actually Pay

Let's put real numbers on the table. According to the EIA, the average residential rate in Arkansas in December 2025 was 12.33 cents per kWh, up from 11.77 cents in December 2024. The national average sits around 18 cents, so Arkansas is about 32% cheaper than the typical American state on a unit basis.

But the cheap rate does not translate directly to low bills. Here is the fuller picture:

Metric	Arkansas	U.S. Average
Residential rate (Dec 2025)	12.33 cents/kWh	~18 cents/kWh
Average monthly usage	~1,049 kWh	~860 kWh
Average monthly bill (Dec 2025)	$129.34	$154.98
National rate ranking	Top 10 cheapest	—
National usage ranking	Top third highest	—

Arkansas households use roughly 22% more electricity than the national average. The reasons are structural: hot, humid summers drive heavy air conditioning loads, about half of Arkansas homes heat with electricity (often resistance heat or older heat pumps), the housing stock is older and less insulated than in many states, and lower incomes mean fewer households invest in efficiency upgrades. If your bill looks higher than you expected even though the rate is low, that is why.

Over the last five years, Arkansas rates have climbed modestly — a sharp contrast to the 20%+ cumulative increases hitting states like Oregon and Michigan. But that modest pace is over. Here is what recent rate cases tell us:

Utility	Recent Action	Residential Impact
Entergy Arkansas (Jan 2026)	APSC-approved 4.54% increase	~$6.08/month on 1,000 kWh
Entergy Arkansas (Feb 2026 filing)	Base rate review	Proposed +$1.16/month for Jan 2027
Entergy GAJA rider (proposed)	Generating Arkansas Jobs Act recovery	Proposed +$5.77/month (~4.17%)
SWEPCO (original Mar 2025)	27.3% residential request	Initially ~$30/month
SWEPCO (approved Jan 2026)	APSC-approved 13.8% increase	~$24/month on typical bill

For a typical Entergy household, layering the January 2026 base increase with the pending Generating Arkansas Jobs Act rider could push 2026 bills roughly 8-9% higher than they were in late 2025. That is the steepest single-year move Arkansas has seen in many years. If your bill has been creeping up and you are not sure where the money is going, our guide on how to read your electric bill and spot overcharges walks through every line item.

Arkansas's Major Utilities

Entergy Arkansas

Entergy Arkansas is the state's largest utility by a wide margin, serving roughly 720,000 customers across 63 of Arkansas's 75 counties. Its territory covers most of central, southern, and eastern Arkansas — including the Little Rock metro, Pine Bluff, Hot Springs, West Memphis, and hundreds of rural communities. It is a subsidiary of Entergy Corporation, the investor-owned holding company that also serves Louisiana, Mississippi, Texas, and New Orleans.

Entergy Arkansas has operated under a formula rate plan (FRP) since 2016. Instead of filing a traditional rate case every few years, the utility submits an annual adjustment that trues up its authorized return on equity, capital investments, and operating costs. The idea is to smooth out rate changes and reduce the regulatory lag between investment and cost recovery. The practical effect is that Arkansas households see small, incremental increases almost every year rather than occasional large jumps.

What the APSC approved in January 2026: A 4.54% residential rate increase, adding about $6.08 per month for a typical 1,000 kWh customer.

What Entergy filed in February 2026: A separate base rate review proposing an additional $1.16/month for residential customers (less than 1%) to take effect January 2027. This is the traditional base rate case that happens on a roughly 5-year cycle in addition to the annual FRP adjustments.

What is coming next: Entergy's Generating Arkansas Jobs Act rider — an additional supplemental charge outside base rates to recover costs for new generation and reliability investments. The proposed GAJA rider would add approximately $5.77/month (about 4.17%) for a typical residential customer. If approved, it stacks on top of the January 2026 base increase.

On the generation side, Arkansas Nuclear One — a two-unit pressurized water nuclear plant on Lake Dardanelle near Russellville — provides roughly 56% of Entergy Arkansas's energy. That reliance on nuclear is unusual for a Southern utility and is one reason Arkansas rates have stayed so low historically. Entergy has filed to extend both units' operating licenses: Unit 1 from 2034 to 2054, and Unit 2 from 2038 to 2058. The license extensions will require significant capital investment in plant upgrades.

Entergy is also building out major new natural gas capacity as part of its Next Generation Arkansas plan unveiled in December 2025:

• Jefferson Power Station: A $1.6 billion, 754 MW natural gas plant near Redfield in Jefferson County, with construction planned for Q2 2026 and operations starting in early 2029
• Ironwood Power Station: A 446 MW natural gas plant in Hot Spring County
• A 440 MW power purchase agreement with Pattern Energy

These projects face significant regulatory friction. The Arkansas Attorney General's office and the APSC general staff asked the Commission to deny the Jefferson Power Station application, citing cost uncertainty and inadequate ratepayer protections. The plant's fate is still being decided as of early 2026.

SWEPCO (Southwestern Electric Power Company)

SWEPCO is a subsidiary of American Electric Power (AEP) and serves roughly 120,000+ Arkansas customers, concentrated in northwest and west-central Arkansas. Its territory covers much of Fayetteville, the Bentonville area, and the Texarkana region. SWEPCO also serves customers in Texas and Louisiana and sits in the Southwest Power Pool (SPP) rather than MISO.

SWEPCO customers have been hit with Arkansas's steepest recent rate increase. In March 2025, the utility filed for an eye-popping 27.3% average residential increase — roughly $30 per month for a typical 857 kWh customer. The request kicked off a months-long fight. The City of Fayetteville, the Arkansas Advanced Energy Association, and the Attorney General's office all intervened in opposition.

In November 2025, SWEPCO reached a settlement with key parties that cut the request to an $85 million increase — still a 13.8% bump for residential customers. The APSC approved the settlement on January 28, 2026, adding about $24 per month to the average residential bill.

SWEPCO has blamed the increase on new natural gas generation, transmission upgrades, storm hardening, aging infrastructure, and replacement power for retiring coal plants. The utility is phasing down its Flint Creek coal plant share and needs to build replacement capacity. Critics argue SWEPCO over-invested in transmission and is passing the bill to Arkansas customers in a jurisdiction where it has relatively few customers compared to Texas and Louisiana.

Arkansas Electric Cooperatives (AECC and 17 Distribution Co-ops)

Outside the investor-owned utility footprints, Arkansas is served by one of the most extensive electric cooperative networks in the country. The Arkansas Electric Cooperative Corporation (AECC), founded in 1949 and headquartered in Little Rock, is the wholesale generation and transmission cooperative owned by 17 local distribution cooperatives that serve approximately 600,000 members across 74 of Arkansas's 75 counties. Together the co-ops cover about 62% of the state's land area.

The distribution co-ops include First Electric, Ozarks Electric, Craighead Electric, Carroll Electric, Farmers Electric, North Arkansas Electric, Ouachita Electric, and others. Each is member-owned, governed by an elected board, and generally offers rates competitive with or slightly below investor-owned utilities.

Cooperative rates are not directly set by the APSC, though the Commission regulates service territories and certain consumer issues. Co-ops set their own rates through member-elected boards, which tends to keep them more locally accountable than investor-owned utilities. They also have access to low-cost federal financing through the Rural Utilities Service, which historically kept their rates low.

Co-ops are feeling the same pressures as IOUs. AECC is adding 900 MW of new generation capacity to meet growing demand — driven in part by data center requests — and is facing new infrastructure costs that will flow through wholesale power contracts to member co-ops.

Oklahoma Gas & Electric (OG&E)

OG&E is a subsidiary of OGE Energy Corp and serves a small portion of western Arkansas, centered on Fort Smith and nearby communities. OG&E's primary footprint is Oklahoma, where it serves most of the state. Its Arkansas operation is a relatively small piece of its overall 850,000-customer, 30,000 square mile territory. Arkansas rates for OG&E customers are regulated by the APSC.

Empire District / Liberty Utilities

Empire District Electric Company, now part of Liberty Utilities (a subsidiary of Algonquin Power & Utilities Corp), serves a small area of north-central Arkansas near the Missouri border. Its total customer base across Missouri, Kansas, Oklahoma, and Arkansas is about 215,000. Arkansas customers are a small minority of that total, and rates for Arkansas operations go through the APSC.

Municipal Utilities

Arkansas has roughly 15+ city-owned electric utilities, including Conway Corporation, Jonesboro City Water and Light, North Little Rock Electric, Paragould Light Water & Cable, and West Memphis Utilities. Municipal utilities typically offer the lowest rates in the state because they are nonprofit, do not pay shareholder returns, and often have access to favorable wholesale power contracts. If you live in a city served by a municipal electric utility, you likely pay 10-20% less per kWh than surrounding Entergy or SWEPCO customers.

Why Arkansas Electricity Rates Are Rising

For most of the last decade, Arkansas enjoyed some of the slowest rate increases in the country. That era is ending. Here is what is driving the shift.

1. The Data Center Surge

Arkansas is becoming an unexpected hot spot for hyperscale data centers. The state has cheap power, abundant land, proximity to Texas and Tennessee transmission corridors, and tax incentives. Announced projects include:

• Google West Memphis: A $10 billion hyperscale facility
• AVAIO "Project Leo" near Little Rock: Up to $21 billion at full buildout, requiring roughly 1 gigawatt (1,000 MW) of electricity — about 5% of Arkansas's entire generating capacity
• Central Arkansas $6 billion facility: A fourth hyperscale development
• Conway billion-dollar data center: Additional planned capacity
• AWS and Meta have both expressed interest in Arkansas sites

Total announced data center investment exceeds $12 billion. The Arkansas Electric Cooperative Corporation reports it has received requests for 4,000 MW of new load from data center developers — more capacity than AECC has built in its entire 80-year history, wanted in just three or four years.

The consumer question is stark: who pays for the new power plants, transmission lines, and substations needed to serve this demand? If data center customers pay cost-of-service rates that fully reflect their impact, residential bills could even benefit from economies of scale. If they do not, residential customers end up subsidizing the infrastructure. Senator Tom Cotton has introduced federal legislation specifically to shield Arkansas households from data center-driven rate increases, and the APSC is reviewing special tariff structures. The outcome will shape residential bills for a decade.

2. The Generating Arkansas Jobs Act

Passed in 2025, the Generating Arkansas Jobs Act (GAJA) is a controversial law that allows Arkansas utilities to start recovering the cost of new generation projects from ratepayers while the plants are still under construction — rather than waiting until they are operational. This practice, known as construction work in progress (CWIP) recovery, is banned in some states precisely because it shifts financial risk from utility shareholders to ratepayers.

The law also allows a supplemental charge outside standard base rates to fund "strategic investments" tied to economic development. For Entergy, that translates to the GAJA rider — a proposed $5.77/month add-on to support Jefferson Power Station, Ironwood Power Station, and other new capacity.

Supporters argue CWIP recovery reduces overall project financing costs because utilities can avoid borrowing at high rates during construction, ultimately saving ratepayers money. Critics argue it removes normal discipline on capital projects because utilities face less risk if a plant is delayed, over-budget, or canceled.

3. Natural Gas Buildout

Both Entergy and SWEPCO are investing heavily in new natural gas generation to replace retiring coal plants and serve new demand. Entergy's Jefferson Power Station alone is $1.6 billion. SWEPCO's recent rate case included justifications for new gas combined-cycle capacity. Natural gas prices are also more volatile than nuclear or hydro — when gas prices spike, fuel adjustment clauses flow the cost through to your bill within weeks.

4. Nuclear License Extensions

Arkansas Nuclear One is Entergy Arkansas's single most valuable asset — 56% of its energy supply. Keeping ANO running through the 2050s will require substantial capital investment in plant upgrades, component replacements, safety systems, and dry cask storage for spent fuel. Those costs will flow into rate base over the next decade.

5. Transmission and Distribution Upgrades

Entergy operates in MISO South; SWEPCO in SPP. Both regional grids are investing heavily in transmission expansion to handle renewable integration, reliability improvements, and interregional connections. Arkansas's share of those costs shows up in transmission riders on your bill.

6. Weather and Storm Hardening

Arkansas faces tornadoes, ice storms, and severe thunderstorms that regularly knock out power. Utilities are investing in line hardening, undergrounding where feasible, vegetation management, and smart grid technology. These are all approved rate base items.

Understanding Arkansas's Rate Structures

Knowing how your bill is built gives you opportunities to save.

Seasonal Rates

Arkansas residential rates typically vary by season. Entergy Arkansas uses a summer/winter rate structure where summer rates (June through September) are higher than winter rates. This reflects the actual cost of generating electricity during peak summer demand, when AC loads push utilities to run their most expensive peaker plants. If you can reduce summer consumption even modestly, you save at the highest-priced tier.

Declining Block and Fixed Charges

Arkansas historically used declining block rates for some customer classes, where the first block of kWh was priced higher and additional blocks were cheaper. Modern rate design has moved toward flatter energy charges with larger fixed monthly customer charges. A typical Entergy residential bill includes:

• Customer charge: ~$10-15 fixed monthly fee regardless of usage
• Energy charge: Per-kWh rate for all consumption (possibly seasonally adjusted)
• Fuel adjustment: Variable pass-through of monthly fuel costs
• Formula rate plan rider: Annual FRP adjustment
• Environmental rider: Air quality and environmental compliance costs
• Storm rider: Recovery for major storm restoration
• GAJA rider (proposed): Construction cost recovery for new generation
• Energy efficiency rider: Funds utility efficiency programs
• Franchise fees: City-specific taxes
• State and local sales tax

Time-of-Use Options

Entergy Arkansas offers a voluntary residential time-of-use rate designed to reward customers who can shift heavy electricity use away from peak periods. Overnight off-peak rates can be as low as about 5 cents per kWh — less than half the standard rate. If you charge an EV overnight, run laundry and dishwashers late, and can pre-cool your home in the evening before peak hours, TOU can cut your average rate significantly.

EV owners in particular benefit from TOU because the vast majority of charging happens overnight, squarely in the cheapest off-peak window. If you are planning to add an EV, enrolling in TOU before the car arrives is usually a no-brainer.

Solar Energy in Arkansas

Arkansas has historically been a tough state for solar economics. Cheap electricity meant long payback periods, state incentives were modest, and net metering faced repeated utility challenges. The 2025-2026 landscape is even more complicated.

The Net Metering Saga

Arkansas's net metering journey reads like a regulatory thriller. Act 827 of 2015 tasked the APSC with establishing "appropriate rates, terms, and conditions for net metering contracts," opening the door for utilities to request reductions to the traditional 1:1 retail credit. After years of proceedings, the APSC issued a 2020 order preserving 1:1 net metering — a major victory for the solar industry.

Then came Act 278 of 2023. Negotiated as a compromise between utilities and the solar industry, Act 278 overhauled the net metering framework:

• Residential systems capped at 25 kW
• Commercial systems capped at 300 kW
• Grandfathering: Systems installed by September 30, 2024 are locked into the old 1:1 retail rate credit through September 30, 2040 (or 20 years from installation, whichever is later)
• Systems installed after September 30, 2024: Credits apply only to the "supply" portion of the bill — not distribution or transmission charges — significantly reducing the effective credit value
• Banking eliminated: Starting January 1, 2025, new customers cannot bank excess generation to offset future-month usage
• Annual settlement: Year-end surplus credits are paid out at the utility's avoided-cost rate, typically around 4 cents per kWh

The practical result: if you installed solar before October 2024, you are sitting pretty with 1:1 credits through 2040. If you install today, your effective credit value is significantly lower, pushing payback periods longer.

What Solar Costs in Arkansas Today

Installed solar costs in Arkansas in 2026 average around $2.47 to $2.65 per watt before incentives. A typical 8 kW residential system runs $14,000-$26,000 before any credits. Payback periods depend heavily on which utility serves you:

• Entergy Arkansas customers: ~10-11 years (financed), ~9 years (cash)
• Cooperative customers: Vary widely — some co-ops credit excess generation at only $0.063/kWh compared to Entergy's $0.089/kWh, pushing payback 2+ years longer
• Overall statewide range: 9-13 years

The federal Investment Tax Credit expired for residential systems at the end of 2025, so you no longer get the 30% federal credit on new installations. Existing systems keep their original credit. Arkansas does not offer a state solar tax credit, so Arkansas solar is now less subsidized than in many neighboring states. Our guide on choosing the best solar panels for your home walks through what matters when evaluating installers and equipment.

Third-Party Financing — Thanks to Act 464

One bright spot in Arkansas solar policy is Act 464 of 2019, which eliminated long-standing barriers to third-party solar financing. Before Act 464, Arkansas effectively banned Power Purchase Agreements (PPAs) and solar leases. Homeowners had to buy their systems outright or through a traditional loan. That locked out tax-exempt organizations — schools, churches, nonprofits, government entities — because they could not use the federal tax credit directly.

Act 464 changed everything. Since 2019, Arkansas has become a notable example of a red state loosening third-party solar restrictions. Municipalities, school districts, colleges, small businesses, and nonprofits can now enter into PPAs and leases with third-party developers who monetize the tax credits and pass the savings through. Homeowners also gained access to PPAs and leases. If you do not want to put $20,000+ upfront into a solar system, a PPA lets you pay a lower per-kWh rate for the electricity your panels produce without owning the equipment.

Community Solar

Arkansas has limited community solar compared to states like New York or Minnesota. Some electric cooperatives offer voluntary community solar programs for members who cannot install rooftop panels. If you are a cooperative member, check with your local co-op about subscription options. Our guide on community solar explains how these programs work.

Strategies to Lower Your Arkansas Electricity Bill

With rate increases accelerating, every efficiency improvement becomes more valuable over time. Here are the highest-impact moves for Arkansas households:

1. Attack the Air Conditioning

AC is the single biggest electricity user in most Arkansas homes, often accounting for 40-50% of summer bills. A few targeted improvements can cut AC costs dramatically:

• Upgrade to a modern heat pump — newer variable-speed heat pumps are 30-50% more efficient than 10-year-old systems. Our guide on the best heat pumps for home covers sizing, brands, and installation considerations.
• Seal and insulate the attic — hot attic air drives up cooling loads. The Arkansas Weatherization Assistance Program can cover this for free if you qualify by income.
• Install a smart thermostat — schedule set-backs when no one is home. Our guide on smart thermostats for energy savings covers the best options.
• Use ceiling fans — they let you raise the thermostat 3-4 degrees without feeling warmer.
• Close blinds and curtains during peak afternoon hours to block solar heat gain.

2. Apply for Weatherization Assistance

If your household is at or below 200% of the federal poverty guidelines, Arkansas's Weatherization Assistance Program provides an average of $5,000 per home in free efficiency upgrades — insulation, air sealing, HVAC tune-ups, water heater wraps, refrigerator replacement, and more. No client contribution is required. Six providers across the state serve all 75 counties. The payback on qualifying is obvious: permanent bill reduction with no out-of-pocket cost.

3. Switch to Time-of-Use Rates (Especially for EVs)

If you can shift your heaviest usage to overnight hours, Entergy Arkansas's voluntary TOU rate can save you 30-50% on the energy charge component of your bill. EV owners benefit most because charging can be scheduled entirely overnight. Homeowners with electric water heaters, dishwashers that run on a timer, and laundry flexibility also benefit. Check with your utility to see if you qualify and run the numbers against your current usage pattern.

4. Check Your Electric Heating

About half of Arkansas homes heat with electricity, and many of them use inefficient resistance heat (baseboards, electric furnaces, older heat pumps). Upgrading to a modern heat pump can cut heating costs 40-60%. The new federal HEAR program (launching in Arkansas in 2026) will offer point-of-sale rebates on qualifying heat pumps for moderate-income households — stackable with any remaining utility rebates. Our whole-home electrification guide covers how to plan a multi-appliance upgrade.

5. Monitor Your Usage

You cannot manage what you do not measure. A home energy monitor shows you where your electricity is actually going — often revealing surprises like a basement freezer running inefficiently, an old pool pump, phantom loads, or HVAC cycling more than it should. Arkansas households tend to use a lot of electricity; finding and eliminating waste is one of the highest-ROI moves you can make.

6. Consider Solar If You Plan to Stay

If you own your home, have decent roof conditions, and plan to stay 10+ years, solar can still make economic sense in Arkansas — particularly if you are an Entergy customer with reasonable net metering credit rates. Payback periods are longer than they used to be, but rates are climbing and solar provides a hedge against the increases coming from data centers, new gas plants, and the Generating Arkansas Jobs Act rider. If upfront cost is a barrier, Act 464 opened Arkansas to Power Purchase Agreements and solar leases. Our broader guide on cutting your electric bill in half covers how efficiency and solar work together.

7. Stack Federal Rebates

Two federal programs are coming online in Arkansas in 2026:

• HOMES (Home Efficiency Rebates): Whole-home efficiency rebates based on measured energy savings
• HEAR (Home Electrification and Appliance Rebates): Point-of-sale rebates for heat pumps, electric water heaters, induction stoves, panel upgrades, and wiring

Both are targeted to households up to 150% of Area Median Income and are administered through the Arkansas Energy Office. If you qualify, stacking HOMES or HEAR rebates with utility programs and the weatherization assistance program can dramatically reduce out-of-pocket costs on major upgrades.

Low-Income Assistance Programs

Arkansas has several safety nets for households struggling with electricity costs.

LIHEAP — Low Income Home Energy Assistance Program

LIHEAP is the primary federal bill-payment assistance program for low-income Arkansans. It is administered through the Arkansas Department of Energy & Environment's Office of Energy, with applications processed by Community-Based Organizations (CBOs) in each county.

Winter 2026 schedule:

• December 8, 2025: Applications open for priority populations (applicants 60+, disabled, households with children under 6)
• January 5, 2026: Applications open to the general public
• April 30, 2026: Winter application deadline

LIHEAP offers two benefit types:

• Regular benefit: Fixed payment based on household income, size, and energy source
• Crisis benefit: Emergency payment to prevent disconnection or restore service

Eligibility is generally households at or below 60% of State Median Income. Funding is first-come, first-served, so apply as early as you qualify. Call 2-1-1 or contact your county's CBO for application details.

Weatherization Assistance Program (WAP)

If LIHEAP helps with this month's bill, WAP addresses the underlying cause by permanently reducing your home's energy consumption. The program covers an average of $5,000 in energy efficiency upgrades per home — free to households at or below 200% of federal poverty guidelines. Six providers serve all 75 Arkansas counties. Services include attic insulation, wall insulation, air sealing, duct sealing, HVAC tune-ups or replacement, water heater wraps, LED lighting, and refrigerator replacement.

Utility Assistance Programs

• Entergy Arkansas — The Power to Care: Customer-funded emergency assistance program; Entergy matches contributions; focused on elderly and disabled customers at risk of disconnection
• SWEPCO — Neighbor to Neighbor: Similar customer-donation-based emergency assistance
• Distribution cooperatives: Many offer member assistance funds or connect members with local resources

Winter Disconnection Protections

Arkansas has cold-weather rules that limit disconnection during extreme temperatures. Medical certification can extend protections for households with medical needs. If you are behind on your bill and worried about disconnection, contact your utility immediately — the earlier you reach out, the more options are available.

Home Energy Rebates (IRA-funded, 2026)

The new federal HOMES and HEAR programs are targeted specifically to low-to-moderate income households. HEAR in particular offers up to $14,000 per home in point-of-sale rebates for electric appliances and weatherization upgrades for qualifying households. These launch in Arkansas in 2026 through the Arkansas Energy Office.

Frequently Asked Questions

What is the average electricity rate in Arkansas?

As of December 2025, the average residential electricity rate in Arkansas was 12.33 cents per kWh according to the EIA. That is about 32% below the national average of roughly 18 cents per kWh, placing Arkansas among the 10 cheapest states. Entergy Arkansas, the state's largest utility, averages closer to 11 cents per kWh.

Why is my Arkansas electric bill so high if the rate is so low?

Arkansas households use significantly more electricity than the national average — about 1,049 kWh per month compared to 860 kWh nationally. The reasons include hot, humid summers that drive heavy air conditioning use, widespread electric heating (about half of Arkansas homes heat with electricity), older housing stock with less insulation, and larger rural homes. Low rates multiplied by high usage still produce meaningful bills. The good news: high consumption means efficiency improvements have a big impact.

Can I choose my electricity provider in Arkansas?

No. Arkansas is a regulated electricity market. Residential customers are served by whichever utility holds the franchise for their address — most commonly Entergy Arkansas, SWEPCO, an electric cooperative, or a municipal utility. Rates for investor-owned utilities are set by the Arkansas Public Service Commission. Electric cooperatives set their own rates through member-elected boards. There is no retail choice for residential customers.

Why are Arkansas rates starting to rise faster?

Several forces are converging: $12+ billion in announced hyperscale data center projects demanding 4,000+ MW of new capacity; Entergy's $1.6 billion Jefferson Power Station and other new natural gas plants; SWEPCO's recently approved 13.8% rate increase; the Generating Arkansas Jobs Act of 2025, which allows utilities to recover construction costs from ratepayers during construction; Arkansas Nuclear One license extension investments; and continued transmission and storm hardening costs. Expect 5-10% annual increases from Entergy for the next several years, potentially more from SWEPCO.

What is the Generating Arkansas Jobs Act?

Passed by the Arkansas Legislature in 2025, the Generating Arkansas Jobs Act (GAJA) allows utilities to recover construction work in progress (CWIP) costs from ratepayers during construction, rather than waiting until plants come online. It also allows a supplemental rider outside standard base rates to fund "strategic investments" tied to economic development. Entergy has proposed a GAJA rider adding approximately $5.77/month (~4.17%) to a typical residential bill to fund new generation projects including the Jefferson Power Station. Critics argue it shifts financial risk onto ratepayers; supporters say it reduces overall project financing costs.

What happened with Arkansas net metering?

Arkansas overhauled its net metering policy with Act 278 of 2023. Solar systems installed by September 30, 2024 are grandfathered into the old 1:1 retail rate credit through September 30, 2040. Systems installed after that date receive less generous treatment: credits apply only to the "supply" portion of the bill, cannot be banked to offset future-month usage, and year-end surplus is paid at avoided-cost rates around 4 cents per kWh. The change significantly extends solar payback periods for new systems. Act 278 also capped residential systems at 25 kW and commercial systems at 300 kW.

Is solar worth it in Arkansas?

Solar economics in Arkansas are more challenging than they used to be. Payback periods for new systems run 9-13 years, with Entergy Arkansas customers at about 10-11 years. The federal Investment Tax Credit expired at the end of 2025, so new systems lose the 30% federal credit. Arkansas has no state solar tax credit. However, rates are beginning to climb faster, which improves the long-term math. Solar remains reasonable for homeowners who plan to stay long term, own their home, and have good roof conditions. Act 464 also opened up third-party financing options like Power Purchase Agreements for homeowners who do not want to buy a system outright.

What should I do if I cannot pay my electricity bill?

Arkansas has multiple safety nets. LIHEAP provides one-time bill payment assistance through county Community-Based Organizations — the Winter 2026 program runs through April 30. The Weatherization Assistance Program can permanently reduce your bill through free efficiency upgrades for qualifying households. Entergy's Power to Care and SWEPCO's Neighbor to Neighbor programs offer emergency assistance. Call 2-1-1 to connect with local resources or contact your utility directly. Do not wait until you receive a disconnection notice — the earlier you reach out, the more options are available.

How does the data center boom affect my bill?

This is the central open question for Arkansas residential customers. If data center customers pay cost-of-service rates that fully reflect their impact on the grid, residential bills could even benefit from shared fixed costs. If they do not, residential customers end up subsidizing the infrastructure build-out. Senator Tom Cotton has introduced federal legislation specifically to shield Arkansas households from data center-driven rate increases, and the APSC is reviewing special tariff structures. The outcome of those proceedings will shape residential bills for a decade.

Your Arkansas Electricity Action Plan

Here is a concrete plan to take control of your electricity costs.

This week:

1. Pull up your most recent Entergy, SWEPCO, cooperative, or municipal utility bill. Identify your kWh usage, all the rider charges, and your average rate. If the line items look unfamiliar, our bill reading guide decodes them.
2. Log into your utility's website and review your usage history for the past 12 months. Note your seasonal peaks — Arkansas households typically see summer bills 2-3x higher than winter bills because of AC.
3. Check whether a time-of-use rate plan would save you money. If you have an EV or can shift heavy usage overnight, the savings can be substantial.

This month:

4. If your household is at or below 200% of federal poverty guidelines, apply for the Weatherization Assistance Program through your county's service provider. This is one of the best programs in the state and requires no out-of-pocket cost.
5. If you are at or below 60% of State Median Income, apply for LIHEAP before the April 30 deadline.
6. Check eligibility for the new federal HOMES and HEAR rebate programs launching in Arkansas in 2026. If you qualify, these can cover 50-100% of heat pump, water heater, and weatherization upgrades.
7. Schedule an HVAC tune-up if you have not had one recently. Arkansas summers push AC systems hard; a modest investment in maintenance can extend equipment life and cut summer bills.

If you are considering solar:

8. Get quotes from at least three Arkansas solar installers. Verify they are reputable and that quoted equipment is quality.
9. Understand the Act 278 net metering rules — your economics depend heavily on whether your utility credits excess generation at a reasonable rate.
10. Consider whether a Power Purchase Agreement or solar lease makes more sense than a purchase given your cash situation and long-term plans.

If you are struggling to pay your bill:

11. Call your utility immediately to discuss payment plans. Do not wait for a disconnection notice.
12. Dial 2-1-1 to connect with local assistance agencies, LIHEAP intake, and utility emergency programs.
13. Ask about medical certification if any household member has health conditions that require electricity for medical equipment.

For the long term:

14. Budget for rate increases of 5-10% per year from Entergy and SWEPCO over the next several years. The era of stable Arkansas rates is ending.
15. Prioritize efficiency upgrades over one-time savings — every kWh you eliminate is a kWh you do not buy at an ever-increasing rate.
16. Watch the APSC proceedings on data center tariffs and the Jefferson Power Station approval. These decisions will determine whether Arkansas residential rates stay competitive or start catching up to the national average.

Arkansas has historically been an island of cheap, stable electricity in a country of rising rates. Low-cost nuclear power, abundant natural gas, rural cooperatives, and a regulated market that kept things boring. That era is ending. Data centers, new gas plants, a shifted net metering framework, and the Generating Arkansas Jobs Act are all pushing rates higher than Arkansans are used to. The households that will pay the least over the next decade are the ones who start using every available tool now — efficiency upgrades, weatherization assistance, time-of-use rates, federal rebates, and where the math works, solar. The cheap-rate cushion will not last forever. Act before the gap with the national average closes.