Bill would let utilities raise rates annually to build power plants

by Steve Brawner (BRAWNERSTEVE@MAC.COM)

Legislative sponsors have introduced a bill they say will allow electric utilities to increase rates sooner and annually to build power plants, ultimately creating lower rates long term.

Senate Bill 307, otherwise known as the Generating Arkansas Jobs Act of 2025, would allow utilities and electric cooperatives to file annual riders with the state Public Service Commission (PSC). Those riders would allow them to increase rates annually before a new plant is fully capitalized, rather than the current system that enacts a larger rate increase near the end of the process. The commission would have to determine if the update is in the public interest.

The 62-page bill would not allow annual updates to increase to the point that they are more than 10% below the national average for all sectors. The commission could allow utilities to increase rates above that amount if there is evidence the rates would attract or retain economic development opportunities and would be in the public interest.

Bill would let utilities raise rates annually to build power plants