TO REQUIRE THE ARKANSAS PUBLIC SERVICE COMMISSION TO APPROVE OR DENY SETTLEMENT AGREEMENTS CONCERNING CLOSING OR ELIMINATING ELECTRIC GENERATION UNITS OR TRANSMISSION ASSETS.

Arkansas utilities need approval for closure deals

Arkansas public utilities must get Public Service Commission approval before entering settlements to close, deactivate, or decommission in-state power units or transmission assets. This covers agreements with the federal government or other third parties, including proposed court consent decrees. Applications must include the agreement’s terms and a pledge not to enter it before approval. The commission must approve or deny each agreement using a “clear and convincing evidence” standard. Approval requires legally reasonable claims, a reasonable and prudent utility decision, and no actions beyond regulatory requirements at consumers’ expense—including actions driven by shareholder or environmental goals. Utilities must support their decisions with records made at the time or, when unavailable, an independent review looking back. The commission must seek input from the attorney general, including consumer utility advocates, and other state agencies with relevant expertise. It must protect confidential information while keeping enough information available for public and commission review. Settlements and other legal resolutions executed or ordered before the law’s effective date are exempt.