(a) (1) Notwithstanding any provision of law to the contrary, the Arkansas Public Service Commission may approve or deny the retirement of a dispatchable electric generation facility owned by a public utility.(2) Before retiring a dispatchable electric generation facility, a public utility shall:(A) Apply to the commission for an order approving the retirement; and(B) Give the commission thirty-days' notice of the application.(3) The application shall include a statement certifying the applicant's compliance with the requirements of this subchapter.(4) The commission shall enter an order within one hundred eighty (180) days of receiving an administratively complete application for retirement to:(A) Approve the application for retirement;(B) Approve the application for retirement with conditions; or(C) Deny the application for retirement.
(1) Notwithstanding any provision of law to the contrary, the Arkansas Public Service Commission may approve or deny the retirement of a dispatchable electric generation facility owned by a public utility.
(2) Before retiring a dispatchable electric generation facility, a public utility shall:(A) Apply to the commission for an order approving the retirement; and(B) Give the commission thirty-days' notice of the application.
(A) Apply to the commission for an order approving the retirement; and
(B) Give the commission thirty-days' notice of the application.
(3) The application shall include a statement certifying the applicant's compliance with the requirements of this subchapter.
(4) The commission shall enter an order within one hundred eighty (180) days of receiving an administratively complete application for retirement to:(A) Approve the application for retirement;(B) Approve the application for retirement with conditions; or(C) Deny the application for retirement.
(A) Approve the application for retirement;
(B) Approve the application for retirement with conditions; or
(C) Deny the application for retirement.
(b) (1) There is a rebuttable presumption against the retirement of a dispatchable electric generation facility.(2) The commission shall not approve the retirement of a dispatchable electric generation facility, authorize a surcharge for the decommissioning of the dispatchable electric generation facility, or take any other action that authorizes or allows for the recovery of costs for the retirement of a dispatchable electric generation facility, including without limitation any stranded asset recovery, unless the presumption under subdivision (b)(1) of this section is rebutted by evidence sufficient for the commission to find that the retirement is in the public interest, including without limitation evidence that:(A) The public utility will replace the retired dispatchable electric generation facility with new electric generation assets that:(i) Are dispatchable by either the public utility or the regional transmission organization or independent system operator responsible for balancing load within the public utility's service area;(ii) Maintain or improve the reliability and resilience of the power grid;(iii) Maintain the minimum reserve capacity requirement established by the public utility's reliability coordinator; and(iv) Have the same or higher capacity value and net capability, unless the public utility can demonstrate that the capacity value and net capability is not necessary to provide reliable service;(B) The retirement will not harm the public utility's ratepayers by causing the public utility to incur any net incremental costs to be recovered from ratepayers that could be avoided by continuing to operate the dispatchable electric generation facility proposed for retirement in compliance with applicable law;(C) The decision to retire the dispatchable electric generation facility is not the result of any financial incentives or benefits offered by a United States Government agency; and(D) The public utility will not commence retirement or decommissioning of the electric generating unit until the replacement generating capacity meeting the requirements of subdivision (b)(2)(A) of this section is fully constructed, permitted, and in operation, unless the public utility can demonstrate that it is necessary under the circumstances to commence retirement or decommissioning of the existing electric generating unit earlier.
(1) There is a rebuttable presumption against the retirement of a dispatchable electric generation facility.
(2) The commission shall not approve the retirement of a dispatchable electric generation facility, authorize a surcharge for the decommissioning of the dispatchable electric generation facility, or take any other action that authorizes or allows for the recovery of costs for the retirement of a dispatchable electric generation facility, including without limitation any stranded asset recovery, unless the presumption under subdivision (b)(1) of this section is rebutted by evidence sufficient for the commission to find that the retirement is in the public interest, including without limitation evidence that:(A) The public utility will replace the retired dispatchable electric generation facility with new electric generation assets that:(i) Are dispatchable by either the public utility or the regional transmission organization or independent system operator responsible for balancing load within the public utility's service area;(ii) Maintain or improve the reliability and resilience of the power grid;(iii) Maintain the minimum reserve capacity requirement established by the public utility's reliability coordinator; and(iv) Have the same or higher capacity value and net capability, unless the public utility can demonstrate that the capacity value and net capability is not necessary to provide reliable service;(B) The retirement will not harm the public utility's ratepayers by causing the public utility to incur any net incremental costs to be recovered from ratepayers that could be avoided by continuing to operate the dispatchable electric generation facility proposed for retirement in compliance with applicable law;(C) The decision to retire the dispatchable electric generation facility is not the result of any financial incentives or benefits offered by a United States Government agency; and(D) The public utility will not commence retirement or decommissioning of the electric generating unit until the replacement generating capacity meeting the requirements of subdivision (b)(2)(A) of this section is fully constructed, permitted, and in operation, unless the public utility can demonstrate that it is necessary under the circumstances to commence retirement or decommissioning of the existing electric generating unit earlier.
(A) The public utility will replace the retired dispatchable electric generation facility with new electric generation assets that:(i) Are dispatchable by either the public utility or the regional transmission organization or independent system operator responsible for balancing load within the public utility's service area;(ii) Maintain or improve the reliability and resilience of the power grid;(iii) Maintain the minimum reserve capacity requirement established by the public utility's reliability coordinator; and(iv) Have the same or higher capacity value and net capability, unless the public utility can demonstrate that the capacity value and net capability is not necessary to provide reliable service;
(i) Are dispatchable by either the public utility or the regional transmission organization or independent system operator responsible for balancing load within the public utility's service area;
(ii) Maintain or improve the reliability and resilience of the power grid;
(iii) Maintain the minimum reserve capacity requirement established by the public utility's reliability coordinator; and
(iv) Have the same or higher capacity value and net capability, unless the public utility can demonstrate that the capacity value and net capability is not necessary to provide reliable service;
(B) The retirement will not harm the public utility's ratepayers by causing the public utility to incur any net incremental costs to be recovered from ratepayers that could be avoided by continuing to operate the dispatchable electric generation facility proposed for retirement in compliance with applicable law;
(C) The decision to retire the dispatchable electric generation facility is not the result of any financial incentives or benefits offered by a United States Government agency; and
(D) The public utility will not commence retirement or decommissioning of the electric generating unit until the replacement generating capacity meeting the requirements of subdivision (b)(2)(A) of this section is fully constructed, permitted, and in operation, unless the public utility can demonstrate that it is necessary under the circumstances to commence retirement or decommissioning of the existing electric generating unit earlier.
(c) At a minimum, the public utility shall provide the commission with evidence of all known direct and indirect costs of retiring the dispatchable electric generation facility and demonstrate that cost savings will result to customers as a result of the retirement of the dispatchable electric generation facility.
(d) (1) Under the commission's report under § 23-18-1104, the commission shall prepare and submit an annual supplemental report to the Joint Committee on Energy no later than December 1 of each year in which the commission issues an order on an application under this subchapter.(2) The annual supplemental report required under subdivision (d)(1) of this section shall include:(A) The number of applications by public utilities to retire dispatchable electric generation facilities, the nameplate capacity of each of the dispatchable electric generation facilities, and whether the application was approved, approved with conditions, or denied;(B) The impact of any commission-approved retirement or retirement with conditions of a dispatchable electric generation facility on the:(i) State's electric generation fuel mix;(ii) Required capacity reserve margins for the public utility;(iii) Need for capacity additions or expansions at new or existing facilities as a result of the retirement; and(iv) Need for additional purchase power or capacity reserve arrangements; and(C) Whether or not the retirement or retirement with conditions resulted in stranded costs for the ratepayer that will be recovered by the public utility through a surcharge or some other separate charge on the ratepayer's bill.
(1) Under the commission's report under § 23-18-1104, the commission shall prepare and submit an annual supplemental report to the Joint Committee on Energy no later than December 1 of each year in which the commission issues an order on an application under this subchapter.
(2) The annual supplemental report required under subdivision (d)(1) of this section shall include:(A) The number of applications by public utilities to retire dispatchable electric generation facilities, the nameplate capacity of each of the dispatchable electric generation facilities, and whether the application was approved, approved with conditions, or denied;(B) The impact of any commission-approved retirement or retirement with conditions of a dispatchable electric generation facility on the:(i) State's electric generation fuel mix;(ii) Required capacity reserve margins for the public utility;(iii) Need for capacity additions or expansions at new or existing facilities as a result of the retirement; and(iv) Need for additional purchase power or capacity reserve arrangements; and(C) Whether or not the retirement or retirement with conditions resulted in stranded costs for the ratepayer that will be recovered by the public utility through a surcharge or some other separate charge on the ratepayer's bill.
(A) The number of applications by public utilities to retire dispatchable electric generation facilities, the nameplate capacity of each of the dispatchable electric generation facilities, and whether the application was approved, approved with conditions, or denied;
(B) The impact of any commission-approved retirement or retirement with conditions of a dispatchable electric generation facility on the:(i) State's electric generation fuel mix;(ii) Required capacity reserve margins for the public utility;(iii) Need for capacity additions or expansions at new or existing facilities as a result of the retirement; and(iv) Need for additional purchase power or capacity reserve arrangements; and
(i) State's electric generation fuel mix;
(ii) Required capacity reserve margins for the public utility;
(iii) Need for capacity additions or expansions at new or existing facilities as a result of the retirement; and
(iv) Need for additional purchase power or capacity reserve arrangements; and
(C) Whether or not the retirement or retirement with conditions resulted in stranded costs for the ratepayer that will be recovered by the public utility through a surcharge or some other separate charge on the ratepayer's bill.
(e) This section is applicable to a dispatchable electric generation facility that is one hundred megawatts (100 MW) or larger located in Arkansas.
(f) This subchapter does not apply to the retirement or repowering of a dispatchable electric generation facility under any settlement, consent decree, or other resolution of any litigation or legal proceeding executed or ordered before April 21, 2025.