Panel: Let firms sell more energy

Renewable-power sales good for business climate, they say

ROGERS -- The Legislature could improve the state's business climate by allowing businesses that generate electricity with solar panels and other renewable energy sources to sell more of it to utilities, lawmakers were told Thursday.

The Senate and House committees on Agriculture, Forestry and Economic Development met Thursday afternoon at the John Q. Hammons Center. Members were attending a rural development conference hosted by the state Department of Rural Services. The committees met with Mike Preston, executive director of the Arkansas Economic Development Commission, and a panel of business leaders.

At least one lawmaker at the joint meeting expressed concern over the idea. It would create instability and drive up electricity rates if utilities were made to buy electricity instead of generating it, Sen. Eddie Williams, R-Cabot, said.

Renewable sources do not generate as many emissions as coal, but coal remains the cheapest way to generate electricity, Williams said.

Arkansas passed a law in 2015 that allows business owners to receive a credit on their electric bills when they use renewable sources of electricity such as solar panels or wind power.

For instance, a business with solar panels that can generate up to 300 kilowatts an hour can supply any electricity it does not use to the electric grid and earn a credit that applies to its electric bill.

Residential customers have a similar opportunity, but they are limited to 25 kilowatt hours.

The law, Act 827, has provisions for businesses to sell more electricity to a utility, but that would require regulatory requests before the state Public Service Commission. Renewable energy advocates called that an expensive step.

Michael Lindsey, a spokesman for Wal-Mart Stores Inc., told the committees that his company and other businesses would like to see the 300-kilowatt cap raised.

The issue is expected to be discussed at the next meeting of the Southern States Energy Board, a nonprofit cooperative association of 16 states that will convene Sept. 25 in Rogers for its annual conference on energy policy, members of the legislative committees said.

State Desk on 05/28/2016

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