Nevada County Picayune and Gurdon Times Newspaper Archive

City rejects Entergy's offer, goes with cooperative

Prescott residents wont have to worry about having electricity after the first of the year.

In the July meeting of the Prescott City Council, Monday, July 18, the citys governing body chose not to sell the citys electric system to Entergy, and enter into a three-year agreement with the Southwest Arkansas Electric Cooperative.

Larry Stockton, whos been working on the electric situation, recommended rejecting Entergys offer because, as he said, We didnt feel we were offered what the system is worth.

Entergy did offer to continue providing electricity to Prescott, with one and two year contracts. Stockton said the one year agreement would have seen electric rates go up 39 percent, while the two-year deal would see a 41 percent hike.

With the cooperative, he said, the increase will amount to 18 percent. According to Stockton, Prescott was offered electricity through the cooperative at the members rate plus 10 percent. This is a three-year agreement. This will give us three years to work things our and find answers. Well be looking because more suppliers will be available.

Stockton said he has talked to both industrial customers, Potlatch and Firestone, and both agreed they could live with the 18 percent increase. Weve made a commitment to work with them, and well do the best we can for them. They both agree with this idea. I hope something better is available in three years.

Prescott Mayor Howard Taylor said he is keeping the industries abreast of where the city is with the electric issue.

Taylor pointed out the citys contract with Entergy expires Dec. 31, 2005, and something had to be in place before then.

When asked if the rate with the cooperative is fixed Taylor said yes, but wasnt completely sure. This is because the city hasnt received a contract yet. He said a special council meeting will be called to go over the contract when it arrives.

Mike Maulden, director of external affairs with Entergy, was at the meeting. He said Entergy has enjoyed its relationship with Prescott and is disappointed it wont continue after the first of the year.

Im worried about the industries taking an 18 percent increase in todays competition, he said. I know the council is concerned about the revenue situation, but our proposal includes a franchise fee that would help offset the loss.

In a telephone interview Thursday, July 21, Maulden said the agreement Entergy offered Prescott included keeping all current employees and putting them on the Entergy pay schedule. This, he added, would have given them significant raises. Entergy was also planning to build a customer service center, had the deal gone through, and continue working with Prescott as Teamwork Arkansas partner.

Compared to Prescotts current residential electric rates, he said, Entergys rates are slightly less, and are only about 3 percent higher on the industrial side.

The scuttlebutt around Prescott, he said, was the difference between 18 percent and 39 percent. But, he added, the 39 percent increase from Entergy is the company selling electricity to Prescott, with its normal rates being much lower.

After the first of the year, he said, Entergy will no longer be an economic partner with Prescott. This is because Entergys Teamwork Arkansas program only works with communities it serves.