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    Home»Politics»Entergy’s Jefferson County Power Station will utilize new state law for utility financing
    Politics

    Entergy’s Jefferson County Power Station will utilize new state law for utility financing

    Decapitalist NewsBy Decapitalist NewsAugust 2, 2025013 Mins Read
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    Entergy’s Jefferson County Power Station will utilize new state law for utility financing
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    Entergy Arkansas is proposing a new natural gas power plant, the Jefferson County Power Station, to be built near the existing White Bluff coal-fired power plant in Jefferson County, which is scheduled to stop burning coal in 2028.

    Entergy agreed to take the White Bluff plant offline in a 2021 settlement with environmental groups Sierra Club and National Parks Conservation Association.

    The Jefferson County Power Station will be a 754-megawatt combined cycle combustion turbine (CCCT) plant, utilizing natural gas with the capability to power more than 355,000 homes.

    If approved by the Arkansas Public Service Commission (PSC), the new plant will begin operations in 2029. Entergy Arkansas said it is also studying the feasibility of extending the lives of the existing units by burning gas instead of coal and transforming that site into an energy center.

    The new plant, currently in a public comment period, will utilize a new state law that allows for more immediate financing of large industrial energy projects.

    The Generating Arkansas Jobs Act of 2025 was signed into law on March 25 by Gov. Sarah Sanders. It allows utilities and electric cooperatives, with PSC approval, to bill customers more incrementally through annual riders during the construction phase of long-term infrastructure projects. Those riders would allow them to increase rates annually before a new plant is fully capitalized, rather than the current system that enacts a larger rate increase near the end of the process. The commission would have to determine if the update is in the public interest.

    Lawmakers and economic developers said the change in process was needed to more quickly pay for and build electric generation plants, which are critical to landing large new industrial projects that require more power.

    Entergy Arkansas said the new Jefferson County Power Station is estimated to generate $2.9 billion in direct, indirect and induced economic benefits for Arkansas during the construction phase. An economic analysis provided by the company estimates approximately 3,600 jobs and $128 million in local, county and sales tax contributions during construction.

    The estimated monthly increase in a typical residential bill would be $2.85 or 2.13 percent, according to an Entergy spokesman. Entergy Arkansas also said the decision to use existing assets at the White Bluff facility would save customers “hundreds of millions of dollars” in transmission-related costs.

    Like many states, Arkansas is grappling with an energy crisis as older facilities are in need of replacement and demands for new energy are coming from population growth in key regions of the state and the possibility of locating data centers in Arkansas. At least three data centers, which utilize large volumes of electricity, are eyeing Arkansas. Two of those prospects are in central Arkansas and one is in the West Memphis region.

    The Arkansas Public Service Commission has not set a timeline for consideration of the Jefferson County proposal yet.

    Entergy Arkansas provides electricity to approximately 735,000 customers in 63 counties across the state. Entergy Arkansas is a subsidiary of Entergy Corp., based in New Orleans.

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