RISK: Arkansas regulator denies Entergy's application to purchase power from planned 440 MW solar project
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The Arkansas Public Service Commission (APSC) denied Entergy Arkansas’ request to purchase power from a proposed 440 MW solar project in Mississippi County.
Entergy filed its application for a 20-year Purchase Power Agreement (PPA) for the Big Island Solar being developed by Pattern Energy in January.
The commission denied the application on September 14.
In the filing, the APSC cited in its findings that the cost of the PPA was not reasonable or prudent and that it would not provide savings for retail customers compared to other generation and power supply options.
ASPC added that it did not find that the PPA would supplement Entergy Arkansas’ existing resources.
The ASPC acknowledged a special rate contract (SRC) Entergy Arkansas had entered in with Google for the Big Island PPA that would produce renewable energy credits (RECs) allowing Google to meet its energy consumption obligations.
“The Commission encouraged us to work with our customer to determine whether we can address the Commission’s concerns regarding the RECs,” said Entergy Arkansas spokesperson, Matt Ramsey. “If we can address those concerns, we plan to ask the Commission to reconsider its decision.”
“Big Island Solar is a shovel-ready project with strong commercial fundamentals, and we remain confident in the lasting value it will deliver. Pattern has a proven track record of developing projects that contribute to a reliable, affordable energy grid and deliver long-term investment to the communities where we work. We’re committed to doing the same here in Arkansas, and we look forward to working with our partners to advance Big Island Solar and bring its benefits to the region,’ added Ian Rice, senior director, business development at Pattern in an emailed statement to NPM.
Pattern Energy did not return calls seeking comment.
NPM Interconnection queue data is describing a 440 MW project under development in Mississippi County with a planned service date of March 20, 2028 and point-of-interconnection (POI) location Sandy Bayou.
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