Arkansas Senate Bill SB295

Arkansas 2023 Regular Session

• Introduced: 2/20/23
• Refer: 2/20/23
• Refer: 2/22/23
• Report Pass: 2/23/23
• Refer: 2/28/23
• Report Pass: 3/2/23
• Engrossed: 3/7/23
• Refer: 3/7/23
• Report Pass: 3/8/23
• Enrolled: 3/9/23
• Chaptered: 3/16/23
• Passed: 3/16/23

Caption

To Amend The Arkansas Renewable Energy Development Act Of 2001; To Prevent Cost-shifting And Ensure Fairness To All Ratepayers; To Create The Customer Protections For Net-metering Customers Act; And To Declare An Emergency.

Impact

The legislation will have significant implications for Arkansas’s energy landscape. By reinforcing net-metering provisions and ensuring that fixed costs are appropriately charged, SB295 aims to promote transparency and fairness for all rates. As a result, this could encourage higher adoption rates of renewable energy technologies, particularly solar, by making them more economically viable for residents and businesses. Furthermore, the law emphasizes the necessity for the Public Service Commission to act within transparent parameters when establishing rates for net-metering customers, which could alter how utilities operate in relation to private renewable energy producers.

Summary

SB295, known as the 'Customer Protections for Net-Metering Customers Act,' aims to amend the Arkansas Renewable Energy Development Act by providing clearer guidelines on net-metering for renewable energy customers. The bill seeks to prevent cost-shifting between utility customers and ensure that net-metering customers are compensated fairly for the energy they contribute back to the grid. This includes establishing a framework for crediting net excess generation and the potential purchasing of unused credits by utilities, fostering a conducive environment for renewable energy growth in the state.

Sentiment

The sentiment surrounding SB295 is largely supportive among renewable energy advocates and environmental groups, who view it as a positive step towards sustainable energy practices and economic growth linked to renewable technologies. However, some concerns have been raised regarding the potential for regulatory overreach or unintended consequences that could arise from broad changes in utility pricing structures. The polarized perspectives underline the ongoing debate about how best to balance the interests of traditional utility providers with emerging renewable energy markets.

Contention

Notable points of contention involve the exact mechanisms for crediting net excess generation back to customers and how utility companies will recoup costs associated with providing net-metering services. Provisions within the bill permit the commission to establish various structures for billing and credits, which may lead to disparities in how different utilities implement these changes. Additionally, while the act declares an emergency, meaning it will take effect immediately upon governor approval, it raises discussions on whether the rapid implementation is justified or if there should be further deliberation on its long-term impacts.