Power generation bill fails in Senate by one vote, effort to be made again

Senate Bill 307, the Generating Arkansas Jobs Act of 2025, failed by one vote in the Arkansas State Senate on Wednesday (March 5). The bill received 17 votes for, 11 votes against, four did not vote, and three voted present.

The measure 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.

“No matter what we do with or without this bill, there is an increased demand for energy, which will drive up prices,” said lead sponsor Sen. Jonathan Dismang, R-Searcy. “That’s just the reality. What this bill is looking to do is mitigate that increase as much as possible.”

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.

In a lengthy floor debate, several senators raised objections to the measure, saying there weren’t enough safeguards in the bill to protect ratepayers or to allow the PSC to provide quicker oversight on projects before they are built.

Sen. Reginald Murdock, D-Marianna, a sponsor on SB 307 who did not cast a vote for or against the bill, said it was a “very complicated bill,” and he thought more testimony and debate was needed.

“Although I believe in the concept and the necessity for power generation, I strongly feel the bill was pushed through too fast,” he said. “I think there are some assurances from the PSC that are needed as it relates to rate increases and how they’ll be applied.”

Sen. Matt McKee, R-Pearcy, another sponsor of the bill, advocated for the measure on the Senate floor.

“We can set the future of our economy for the state, for our kids, and for the people who have taken care of us,” he said in response to criticism that the bill was not balanced enough between economic interests versus ratepayers’ interests.

Gov. Sarah Sanders supports the bill, saying in an earlier statement, “I meet with companies all the time, and one of the No. 1 topics they bring up is the need for affordable, reliable energy. This legislation helps us keep the Natural State competitive by investing in our energy infrastructure and maintaining our reputation as a national leader in energy reliability and affordability while still maintaining the PSC’s regulatory authority. I thank the legislators and stakeholders who worked on this bill and look forward to signing it when it reaches my desk.”

Utility companies, including Entergy Arkansas, Electric Cooperatives of Arkansas, Southwestern Electric Power Company (SWEPCO), and Black Hills Energy, support the measure. A large group of industrial manufacturers known as the Arkansas Electric Energy Consumers as well as several forestry and paper processors are opposed to the bill.

The bill is expected to come up for a vote again, although no timetable has been established. Dismang had the vote expunged after it failed, a parliamentary move that will allow the bill to be considered on the Senate floor again later.

Editor’s note: Steve Brawner contributed to this report.