Copyright Arkansas Online
Entergy Arkansas on Thursday put a $1.6 billion price tag on its proposed 754-megawatt Jefferson Power Station. In a news release, the power company touted its proposal before the state Public Service Commission to build a "highly efficient natural gas plant near Redfield that will provide affordable, reliable energy for decades to come." According to the release, construction of the natural-gas plant is expected to bring more than 3,600 jobs and generate an estimated $2.9 billion in total economic impact. It is also expected to contribute $128 million in "local, county, and sales taxes to fund schools, roads and other vital services." The plant would be located at Entergy's White Bluff site adjacent to its coal-fired plant which is slated to shut down by 2028 after a 2021 settlement of a lawsuit brought by the Sierra Club and the National Parks Conservation Association. The new plant will have the capacity to power more than 355,000 homes. It is scheduled to begin operations in 2029. Entergy said that the station would provide around-the-clock power as customers need and that it will have technology that is 40% more efficient. "Jefferson Power Station represents a cornerstone investment in Arkansas's energy future," Laura Landreaux, president and CEO of Entergy Arkansas, said. "This facility will strengthen reliability, keep costs low for our customers, and provide the dependable energy supply our communities need to thrive. We're building for the next generation of Arkansans." Once fully operational, the plant would have about 22 full-time employees. Entergy also said it plans to hire local Arkansas-based vendors for the construction of the project. The proposed plant would be financed by a $2.85 per month rate increase for residential customers through a process called a Strategic Investment Rider. The fee is made possible by Act 373, which allows public utilities to finance "strategic investments" through a rate increase that can be charged before construction is completed. Prior to announcing the cost of the project, Attorney General Tim Griffin's office opposed it because of lack of clarity of that cost. "(Entergy) has not demonstrated that the cost of (Jefferson Power Station) is reasonable or that the project is the best available resource to meet the company's forecast capacity needs beginning in 2030," Scott Norwood, an energy consultant who filed testimony on behalf of Griffin's office, said in his testimony. Norwood also argued that the company did not look at other less costly options. However, other state officials have supported the plant and the rate increase as it will help bring economic development for the state. Rep. Les Eaves, R-Searcy, one of the co-sponsors of Act 373, said in his letter of support that "the Arkansas General Assembly and Governor Sanders have determined in passing and enacting Acts 373 and 940, these resources are critical to Arkansas's long-term future and to the state's ability to continue attracting economic development opportunities and to help retain and strengthen existing businesses." The project is still pending a decision by the Arkansas Public Service Commission, which anticipates issuing a final order by the end of January 2026.
