11-03-2025
Arkansas Public Service Commission submits proposed changes to Arkansas utilities legislation
Video: Amendment may bolster Arkansas legislation restructuring electrical utilities
LITTLE ROCK, Ark. – The Arkansas Public Service Commission (PSC), which oversees utility rates, has reviewed a proposed change to the law regarding how a utility can charge rates.
The review was at the request of an amendment filed Thursday by Sen. Jimmy Hickey (R-Texarkana) requesting the review. The amendment came when the bill failed to pass the Senate by one vote on Wednesday but was placed back on the Senate schedule by a procedure.
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A cover letter with the review stated that it was free from outside influence and the PSC general staff did not participate in the review 'due to their status as a party in commission dockets.' PSC chair Doyle Webb signed the letter.
The review clarifies how the legislation, Senate Bill 307, would impact ratepayers through charging for new construction and identifies and clarifies areas of the bill that could be problematic for the PSC. It also stated that the PSC does not take positions for or against legislation.
New power-producing or transporting utility projects are called 'strategic investments' in the bill's language.
The overarching change proposed by the PSC review was tightening the definition of a utility's strategic investment so ratepayers would be less likely to be billed for construction projects that the PSC has not approved. This was an issue for senators who voted against the bill last week.
Arkansas electric utility bill fails Senate vote, due to return later
Arkansas will lose two coal-fired power plants in 2030 out of its five.
SB307's primary sponsor, Sen. Jonathan Dismang (R-Searcy), has consistently pointed out that ratepayers would face increased costs if those plants were lost. He has also added that construction to replace the closing plants would raise rates.
SB307's objective, Dismang said, was that it would allow prices to rise incrementally while new construction was underway, a change from the current model of rates changing, often significantly, only when a project is completed. Opponents pointed out that this could lead to ratepayers covering the cost of projects that could be abandoned by a utility, essentially taking the risk away from utilities and putting it with ratepayers.
In its review, the PSC recommended that a utility's request for strategic development brought before it be accompanied by an attestation from the state's economic development director on the economic impact.
Amendment may bolster Arkansas legislation restructuring electrical utilities
SB307 has no upcoming events scheduled on the legislative calendar.
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