Positioning Arkansas for continued economic development success

Arkansas has seen economic development success in recent years with many new businesses locating in Arkansas and bringing significant investments and well-paying jobs to Arkansans.

To continue this success, Arkansas needs to invest in utility infrastructure to provide the power and energy that economic development prospects require to locate here. Fortunately, the General Assembly is engaged in this effort with SB307, the Generating Arkansas Jobs Act. This bill has passed out of the Senate and is being considered in the House this week.

Arkansas has incredible, transformative opportunities across the state in a variety of industries. The steel industry in northeast Arkansas; the lithium industry in south Arkansas; the aerospace and defense industry in south Arkansas; logistics and manufacturing in central Arkansas; the air base and training facility in Fort Smith; and continued retail, transportation, and food processing in Northwest Arkansas and the River Valley with many opportunities for more. Arkansas also has opportunities for growth from the technology sector, but all of this growth requires power.

The benefits of SB307 are numerous and compelling for Arkansas.

• It streamlines the regulatory process and eliminates unnecessary red tape while retaining the Arkansas Public Service Commission’s oversight. SB307 does not reduce the commission’s oversight of utilities, and, in fact, it provides increased visibility into these projects. The commission still approves each project before construction or cost recovery can begin, it reviews and approves each annual update, and the commission will perform an audit of all expenditures once the project is complete. All charges are subject to refund until the commission completes its review and audit.
• It supports essential investments needed for economic development opportunities.
• Customers will realize long-term savings compared to traditional methods over the life of assets.
• The bill allows for the recovery of construction work in progress (CWIP), a proven tool used effectively in several states.
• It ensures more stable rates with predictable changes, reducing the overall cost impact on customers.
• It supports a diverse energy portfolio and timely recognition of revenue growth from economic development projects, further mitigating impacts on customer bills.
• Most importantly, it helps keep Arkansas’ utility bills below the national average, ensuring our economic competitiveness.

Passing SB307 now is critical for our state’s future. Arkansas has enjoyed affordable, reliable, resilient energy resources for many years and now we must invest to ensure that Arkansas remains competitive. SB307 protects customers by building infrastructure that provides safe, affordable, reliable power needed for current and future Arkansans.

Arkansas is a great place to live, work, and do business. I have been actively involved in growing Arkansas and bringing jobs to the state for many years. Increasing the state’s power generation capacity and updating its electrical infrastructure is essential for economic development success and growth. This growth will bring investment and jobs that will benefit our state for generations to come.

Join me in encouraging our elected officials to support and pass SB307 to position Arkansas for continued economic development success.

Editor’s note: Ray Dillon was president and CEO of Deltic Timber Corporation. He remains engaged in economic development in Arkansas. The opinions expressed are those of the author.