Benton County Looks At Tax Plan

— Benton County officials gave their qualified endorsement Tuesday to a proposal to ease property taxes on improvement to the Flint Creek power plant near Gentry.

The county Finance Committee voted to send the request for a Payment in Lieu of Taxes agreement on to the Committee of 13, which meets at 6 p.m. Tuesday. The justices of the peace asked County Judge Bob Clinard to invite Gentry’s mayor and superintendent of the Gentry School District so the committee can hear from them on the proposal.

Michael Henderson, senior vice president and chief financial officer for Arkansas Electric Cooperative, said the agreement essentially exempts the corporation’s share in planned environmental additions to the plant from the county’s property taxes. The corporation will pay the county about $1.75 million over 32 years in lieu of those taxes. Henderson said there is a possibility of the plant being closed if the improvements’ cost are too much.

AT A GLANCE

Finance Committee

Benton County’s Finance Committee on Tuesday also forwarded to the Committee of 13:

  • A request for an additional $500,000 for the Road Department for paving work in 2012.
  • A request for an additional $20,000 renovation work in the Courthouse Tower East.

Source: Staff Report

Southwestern Electric Power and Arkansas Electric Cooperative each own 50 percent of the 528-megawatt coal-fueled plant, according to the company website. Southwestern Electric Power operates the facility. As a baseload unit, Flint Creek provides power 24 hours a day. It’s the only baseload power plant in Northwest Arkansas.

To comply with multiple federal Environmental Protection Agency regulations, the plant would have to install controls for sulfur dioxide, nitrogen oxide, mercury and other hazardous air pollutants, according to the company.

The controls include a dry flue gas desulfurization system, commonly known as a scrubber, to reduce sulfur dioxide emissions; low nitrogen oxide burners and overfire air to reduce emissions; activated carbon injection to reduce mercury emissions; and a fabric filter, commonly known as a baghouse, to filter particulate.

Henderson said no decision will be made on the improvement until the EPA finalizes new rules. Plans are to have the equipment in place and operating by June 2016. The estimated cost of the project is $408 million with each partner responsible for half.

“This makes the expenditure of this $205 million more economically feasible,” Henderson told the justices of the peace.

Justice of the Peace Tom Allen said the improvement is anticipated to create about 500 construction jobs and 19 permanent jobs at the plant.

“If we were to lose those jobs, it would be a pretty big hit for the county,” Allen said. “We’d lose that tax base too.”

Richard McComas, county comptroller, said if the improvement is done and Southwestern Electric Power doesn’t seek a similar agreement, the county’s property tax revenue on that company’s share could be an additional $1 million annually. The county now receives about $500,000 in annual property tax revenue from the Arkansas Electric Cooperative and a similar amount from Southwestern Electric Power for the power plant.

Upcoming Events