SB721: Electricity Rates to Skyrocket

Under Madison’s SB 721
Electricity Rates Would Necessarily Skyrocket
(In Insurance and Commerce Committee Today)

Contact your senator and representative. I predict this bill will move very quickly. You can leave a message for your Senator at 501-682-2902 and your Representative at 501-682-6211.

Don’t be fooled by the title of the name and subtitle: Below is a statement from the power companies. Remember when Obama said, “Under My Plan Electricity Rates Would Necessarily Skyrocket.” Senator Madison is doing Obama’s work for him here in Arkansas. She advocates a plan in her bill to cause electricity to skyrocket in Arkansas before Washington mandates it. In states where they have these mandates like Madison is proposing, electricity is 40% higher than in those states that don’t. While “renewable energy is currently responsible for less than two percent of the electricity generation in the United States,” Senator Madison wants Arkansas power plants to get 20% of their energy from renewable sources. See quote from the bill at end of this email.

Arkansas Municipal Power Association
Legislative Bill Tracking Report
March 11, 2011

This bill includes a 20%/200mW renewable portfolio standard (RPS) for Arkansas (23-18-904(c)(1)(B)). Each utility would be required to purchase renewables under a tariff based on its load ratio share. These higher-cost renewables will increase our retail rates to families, business and industry.

Since many cities purchase power thru full-requirements, long-term agreements, this renewable mandate may be in conflict with these contracts. The cities which own more than 80% of their needs may find some of their generating capacity effectively “stranded”. This could further increase prices to customers.

Signed by Financial Services Director
Electrical Services in City in Arkansas

Click here for SB721:

18-1004. Requirement to purchase renewable energy.
(a) An electric utility shall file with the commission for a feed-in tariff that:
(1) Requires the electric utility to purchase the renewable energy produced by a renewable electric generation facility at the price and
terms established by the commission for a period not to exceed twenty (20) years; and (33
(c)(1)(A) After the commission approves the feed-in tariff, the 22 electric utility shall make the feed-in tariff available on a first-come, first-served basis to renewable electric generation facilities that are 24 located within the allocated service territory of the electric utility.
(B) Unless the commission for good cause modifies the requirement for an electric utility under this subdivision (c)(1), the electric utility shall offer to purchase under the feed-in tariff at least twenty percent (20%) of its electricity supply requirement under subdivision
(c)(1)(A) of this section from a residential or commercial renewable electric generation facility.

Link to SB721
Link to SB721′s Bill Status History

Link to the Arkansas State Legislature
Senate Judiciary Committee

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