Entergy Arkansas unveils ‘Next Generation’ plan; will seek to extend nuclear licenses

Entergy Arkansas officials held a high-profile press conference at the state capitol Thursday (Dec. 18) to unveil aspects of a comprehensive state energy plan for the future called Next Generation Arkansas.

The plan includes expanding the life spans of several existing generation stations – including Nuclear One in Russellville – renewable energy opportunities, curtailing outages to improve reliability, and introducing tools to lower consumers’ costs.

Entergy Arkansas President and CEO Laura Landreaux led a team of company executives, Arkansas Secretary of Commerce Hugh McDonald, and State Sen. Jonathan Dismang, R-Searcy, through the series of actions on the plan’s agenda.

At the heart of the actions, Landreaux said, is the case to provide low-cost power for residential users and business customers. Arkansas’ population is growing and new and expanding businesses are on the rise.

“The cost of not being prepared for future power needs is not an option,” she said.

The Next Generation plan will require different filings with the Arkansas Public Service Commission and the total price tag for everything is not finalized and could be adjusted, but it is safe to say the investments will be in the billions of dollars.

“It’s in various phases before the regulators right now. So depending on how that comes out, we’ll see how we phase in different parts of it,” said Landreaux. “We haven’t brought all of this plan to the Public Service Commission yet, so there’ll be more puts and takes. But the beauty of the plan is that we’re bringing in this customer growth and it’s bringing in additional revenue that’s helping us offset the cost. That will help put downward pressure on rates that we’ll be seeing as we carry through this plan.”

Extending the life of Arkansas Nuclear One, a two-unit pressurized water nuclear power plant located on Lake Dardanelle outside Russellville, will be a key to keeping electricity prices under control, noted Landreaux. She said Entergy will be filing paperwork with federal and state regulators in the future to extend the nuclear power plant’s licenses.

“In the long term, we’re seeking a license extension so we can operate those plants for another 20 years beyond their current license today, which would end in 2034 and 2038. So 20 years beyond that. We’ll be making that application with the Nuclear Regulatory Commission over the next several years,” she said.

Entergy officials also discussed plans to retool coal-fired plants to run on natural gas as well as renewable energy plants, including solar fields and battery storage. A goal in the plant upgrades is to gain 40% better fuel efficiency.

A huge emphasis of the Next Generation plan is to decrease power outages and improve reliability. Landreaux said that eliminating nearly one in every three power outages is a goal.

Entergy, which employs about 2,800 across the state and serves 63 of Arkansas’ 75 counties, plans to invest more resources into keeping vegetation off power lines and removing dead trees that can fall on those lines in tough weather conditions, the number one reason for outages, she said.

The state’s largest electric utility said it also plans to invest in technology that will help predict potential outages and use satellite imagery to better enhance vegetation management.

Secretary of Commerce Hugh McDonald, a former Entergy Arkansas CEO, touched on how important power is to economic development. It has become one of the top priorities for businesses looking to expand in Arkansas.

Touting steel, lithium, data centers and distribution, McDonald said this past year has seen a pipeline of $6.7 billion invested in Arkansas creating more than 4,000 jobs. To keep that going, legislation that was approved in the regular session earlier this year is needed to maintain momentum.

“Making changes like that are risky, but it is working,” he said. “It is giving us answers when we talk to prospects… we can get it (energy) faster than other states.”

McDonald said without the legislative action to allow energy companies to recoup expenses earlier in the buildout phases of generation, Arkansas would not be as competitive for projects like a recent $4 billion investment in West Memphis.

“Google would not have happened without this,” he said in reference to the October major announcement.

Sen. Jonathan Dismang, lead sponsor of the energy legislation last session, said the state was moving forward with its emphasis on making power more plentiful and affordable for businesses.

“We are entering into a golden age in Arkansas,” he said, in reference to legislation affecting energy, education, workforce and economic development. “This is our goal in the state of Arkansas. To create reliable power, affordable power, dependable power… We are moving forward as a state.”

Landreaux and Entergy officials also indicated that new rate options would be forthcoming for residential customers and they would include new tools being developed to improve home energy audits to help better control electricity expenses.

“We’ve got a new rate case that we’ll be filing at the conclusion of our formula rate plan at the beginning of next year. And as part of that rate case – it’s just updating old policies, old tariffs – we’ll be putting forth some new options for customers to help them manage their usage at home and help them take more control over their bill,” said Landreaux.