What The Clean Energy Act of 2011 (SB 721) will do for Arkansas

From the Arkansas Renewable Energy Association

• SB 721 ensures that 3% of our electricity will come from renewable energy generation; sets caps on its production. 
• SB 721 will help re-employ the idled construction workers in the state by providing remodeling and installation jobs.  
• SB 721 will create tens of thousands of new jobs worth millions of dollars, and create billions of dollars’ worth of clean energy, also lowering the need for more dirty energy.
• SB 721 will help lead to lowering our dependence on outside energy sources.  Arkansas currently imports over 60% of the fuel we use to create electricity in the state.
• SB 721 will allow the utility companies, industry, business, and residential customers to participate in the transition to a clean energy economy; no one is left out as producers.
• SB 721 rewards, according to the efficiency of the rate of production of energy, which assures an efficient use of ratepayer funds.
• SB 721 allows the PSC to set different rates on each type of energy produced: wind, solar photovoltaic, biomass, geothermal, and hydro.
• SB 721 lets the Public Service Commission and utilities establish the rate for the consumer: caps cost at less than 1% of the monthly consumer bill. 
• SB 721 provides the energy producer a long term contract, which encourages lenders to finance renewable energy development.
• SB 721 has the producer pay for the internal grid needed to get his project hooked up to the grid, protecting the utility.
• SB 721 promotes owner pride in his or her “home-grown energy”.

Myth: FERC will not let states set their own rates

Truth: FERC reviews all rates that the PSCs set, but they have been approving most states’ rates.

Myth: It will be very costly for utility companies to interface with renewable energy projects.

Truth: This bill allows the utility to ask for rate increases to completely cover their rather small extra costs to “balance” the load coming in. Other states’ utilities have done fine, accepting big wind and solar power of all kinds onto their grids.  The technology is there, and the bill pays them to get it.

Myth: Industry will have very high utility bills if this proposal becomes law. 

Truth: The cost is only .5-1% of an average monthly bill.  This bill spends a nickel to save 7 dimes by 2030; it protects us by 7 or more percent from the projected cost of energy.