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SREA Testimony in Entergy Arkansas Rate Case Highlights Importance of Good Planning to Prevent Higher Costs
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SREA Testimony in Entergy Arkansas Rate Case Highlights Importance of Good Planning to Prevent Higher Costs

  • SREA has intervened and provided testimony in Entergy Arkansas' first full rate case at the Arkansas Public Service Commission in a decade
  • Expert witness testimony higlights that Entergy's Integrated Resource Planning (IRP) process is flawed, favoring favoring fossil fuels in its modeling and hard-coding near-term gas additions into its modeling without evaluating alternatives
  • Another witness' testimony noted the importance of an improved interregional transmission strategy to better meet the demands facing the grid from large loads 
  • The public still has opportunities to submit public comments or attend a public hearing in the matter

 

In January 2026, Entergy Arkansas filed its first full rate case at the Arkansas Public Service Commission in a decade. While most ratepayers will rightfully be concerned about rising electric bills, the Southern Renewable Energy Association intervened and is participating in the docket by highlighting the importance of good planning to prevent higher costs. 

“To help keep rates in check, we think the Commission should adopt a more robust planning process and competitive procurement requirements for both power plants and power lines. Evaluating alternatives is an important way to cut costs and future-proof the grid,” said Simon Mahan, Executive Director of the Southern Renewable Energy Association.   

Testimony provided by SREA expert witness Lucy Metz, Synapse Energy Economics, highlights that Entergy Arkansas’ Integrated Resource Planning (IRP) process is flawed, favoring fossil fuels in its modeling and hard-coding near-term gas additions into its modeling without evaluating alternatives.  

“An IRP is a utility’s best tool for proactive planning and for supporting the prudence of its proposed plan and spending,” Metz said.  

As data center growth continues to grow in Arkansas, Metz’s testimony provides a warning: “EAL’s planned resource additions - and corresponding capital expenditures - could be even higher if Entergy Arkansas experiences additional large-load growth.” A flawed planning process hampers the Commission’s ability to adequately evaluate Entergy’s rate case, and prepare for the future, Metz said. 

Testimony provided by SREA expert witness Jay Caspary with TransGrid Advisors, LLC underscores the importance of improved transmission planning. He noted the need for improvement in Entergy’s interregional planning strategy. “The joint study with SPP and the development of CORE and CORE+ portfolios is a step in the right direction,” he said. “Unfortunately, the demands being imposed on the grid are growing faster than the existing approved planning processes can address.” Caspary previously worked at Southwest Power Pool (SPP) and with the US Department of Energy’s Grid Deployment Office.  

Without better, more robust planning, transmission expenses may not be optimized, Caspary cautioned. “Entergy has not considered a long enough planning horizon to support plans to address long-term reliability needs with a focus on affordability,” he said. “We need 20 to 30-year plans to adequately address these issues.” 

Key recommendations include the following: 

  1. Implement a full litigated process for IRP dockets 
  2. Improve information accessibility and data transparency
  3. Improve the processes for stakeholder engagement
  4. Strengthen EAL’s capacity expansion and production cost modeling
  5. Improve resource adequacy modeling
  6. Utilities should be required to engage in an All-Source RFP process for competitive procurement prior to filing an application for approval of new resources
  7. Expand the scope of transmission expansion plans
  8. Identify the potential application of advanced transmission technologies 
  9. Provide leadership in MISO on transmission 

Ratepayers can submit comments on Entergy Arkansas’ rate increase proposal by contacting the Public Service Commission, here: https://apps.apsc.arkansas.gov/olsv2/PublicCommentForm.asp?DocNum=26-001-U

The Evidentiary Hearing is scheduled for November 4-5, 2026 at the Arkansas Public Service Commission.

Two additional public comment hearings will be held:

Tuesday, Oct. 20: Batesville
Tuesday, Oct. 27: El Dorado

 

More information is available from Entergy at: 

https://www.entergyarkansas.com/ratecase2026



Southern Renewable Energy Association

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Legislation

SREA advocates for policies that support renewable energy deployment and protect the industry from legislative threats. Our efforts ensure that renewable energy companies influence regional energy policies, focusing on growth, tax incentives, siting, and decommissioning requirements.

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Regulatory

SREA’s regulatory advocacy helps shape utility plans to integrate renewable energy, expanding clean energy access in the Southeast. By participating in state utility proceedings, SREA provides technical comments and testimony to promote clean energy adoption.

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Transmission

SREA is actively engaged in the regional planning process and collaborates with organizations across the region to push for reforms in planning, transparency and oversight with two goals in mind: strengthening the grid and integrating more renewable energy.