LITTLE Rock, Ark. – A bill restructuring how electric utilities charge construction costs passed the Senate on Wednesday in a 23-9 vote, with one not voting.
Senate Bill 307 was initially defeated last week but was restored through a procedural motion by its sponsor, Sen. Jonathan Dismang (R-Searcy). Dismany filed two amendments to the bill on Tuesday, integrating input from the Public Service Commission (PSC) into the bill’s language.
Arkansas electric utility bill fails Senate vote, due to return later
The bill changes how early in the process a utility can charge a ratepayer for new project construction.
In the current model, the rate increase accompanying a new power plant, for example, would come after a project was completed. In SB307, a utility could charge a ratepayer while construction was underway, leading to an incremental increase in rates over time, compared to a sudden and more significant rise from the model it would replace…