LITTLE ROCK, Ark — Arkansans can expect their electric bills to go up because of the increase in natural gas prices.
Entergy Arkansas customers will start seeing their bill go up next month, but other companies have been incorporating the increases throughout the year.
"Natural gas has traditionally been a very low cost source for us to generate electricity," said Brandi Hinkle with Entergy Arkansas.
But now that's changing as natural gas is becoming one of the most expensive fuel sources.
"Last year's rates were just pretty much outrageous. They could not have been anticipated," said Hinkle.
Entergy told us natural gas prices increased almost 100% last year for them.
For the first time in two years, Entergy is increasing their energy cost recovery rate. It's a combination of what Entergy pays for fuel and how much a person uses in their home.
It accounts for about 9% of a person's bill.
For the average Entergy customer who uses 1,000 kilowatt hours per month, they will see around eight dollars more on their bill.
But not every electric company adjusts their rates annually.
"We actually pass on the costs immediately," said Rob Roedel with Arkansas Electric Cooperative.
Arkansas Electric Cooperative customers may have seen their bills increase steadily in the past year because as natural gas prices increased the company adjusted for each bill.
"So, if the cost of natural gas goes above what we predicted, that's automatically passed through to our members that month," said Roedel.
Entergy was looking to expand their natural gas resources in Arkansas, but recently they have decided to look at other options to save money.
"Instead, we have put out a bid for proposals for more renewable energy: solar, wind, hydro, that sort of thing," said Hinkle.
There are other ways to save money. Entergy suggests making your home more energy efficient by insulating your windows and doors, and monitoring your thermostat usage.