A controversial bill that would allow utilities in Arkansas to make capital investments without regulatory oversight and charge customers higher rates to cover their costs is set to be heard in the state Senate. Senate Bill 307, also known as the “Generating Arkansas Jobs Act,” has bipartisan support but has faced criticism for potentially burdening poor and working Arkansans.
The 62-page bill broadly redefines “strategic investments” for utilities, allowing them to pass costs to customers without needing approval from the Arkansas Public Service Commission. The bill would also remove limits on rate increases for electric co-ops and permit utilities to recoup spending from consumers for a wide range of investments, even if they do not directly benefit customers.
Critics argue that the bill could lead to significant rate hikes for Arkansas residents and limit the ability of the Public Service Commission to protect the public from unjustified increases. Supporters, including Commerce Secretary Hugh McDonald and utility companies like Entergy Arkansas and the Arkansas Electric Cooperative Corporation, claim the bill is necessary to meet the state’s growing energy needs.
If passed, the bill would give power companies unprecedented freedom to raise rates on consumers and potentially make it more difficult for residents to challenge price hikes. Despite concerns raised by some state officials and public service staff members, Gov. Sarah Huckabee Sanders has indicated her support for the bill. The outcome of the Senate hearing on Tuesday will determine the future of SB307 in Arkansas.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
