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Insurance & Commerce - Senate

February 23, 2023 ·10:00 AM ·Room 171 ·46:31
Video Transcript 1 document

Bills discussed (16)

Bill Title Sponsor Status
HB1360 Act 318 · 2 mentions in agenda, chapter
Matched: “…E DELIVERED THROUGH A PSYCHIATRIC COLLABORATIVE CARE MODEL. HB1360 McGrew TO ALLOW RESIDENTIAL ELECTRICIANS TO PERFORM WORK ON…”
TO ALLOW RESIDENTIAL ELECTRICIANS TO PERFORM WORK ON THREE AND FOUR FAMILY HOMES; AND TO … McGrew Notification that HB1360 is now Act 318
SB178 Act 615 · 2 mentions in agenda, chapter
Matched: “…ILITIES DAMAGE PREVENTION ACT; AND TO DECLARE AN EMERGENCY. SB178 K. Hammer TO AMEND THE ARKANSAS HEALTH CARE CONSUMER ACT; A…”
TO AMEND THE ARKANSAS HEALTH CARE CONSUMER ACT; AND TO PROVIDE REIMBURSEMENT AND BENEFITS FOR … K. Hammer Notification that SB178 is now Act 615
SB297 Act 309 · 2 mentions in agenda, chapter
Matched: “…R NET- METERING CUSTOMERS ACT; AND TO DECLARE AN EMERGENCY. SB297 J. Dismang TO AMEND THE ARKANSAS UNDERGROUND FACILITIES DAM…”
TO AMEND THE ARKANSAS UNDERGROUND FACILITIES DAMAGE PREVENTION ACT; AND TO DECLARE AN EMERGENCY. J. Dismang Notification that SB297 is now Act 309
SB94 Act 302 · 2 mentions in agenda, chapter
Matched: “…ang Sen. Justin Boyd REGULAR AGENDA Number Sponsor Subtitle SB94 K. Hammer TO MODIFY THE ARKANSAS PHARMACY BENEFITS MANAGER…”
TO MODIFY THE ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT. K. Hammer Notification that SB94 is now Act 302
SB119 · 1 mention in agenda
Matched: “…ELECTRICIANS. PENDING FISCAL IMPACT Number Sponsor Subtitle SB119 Irvin TO CLARIFY PAYMENT FOR HEALTHCARE SERVICES PERFORMED…”
TO CLARIFY PAYMENT FOR HEALTHCARE SERVICES PERFORMED BY CERTAIN OUTPATIENT SURGERY CENTERS. Irvin Sine Die adjournment
SB122 · 1 mention in agenda
Matched: “…E SERVICES PERFORMED BY CERTAIN OUTPATIENT SURGERY CENTERS. SB122 B. King TO CREATE THE HEALTHCARE COST-SHARING COLLECTIONS A…”
TO CREATE THE HEALTHCARE COST-SHARING COLLECTIONS ACT. B. King Sine Die adjournment
SB140 · 1 mention in agenda
Matched: “…VEST THE STATE OF STOCKS, SECURITIES, OR OTHER OBLIGATIONS. SB140 J. Bryant TO AMEND THE DEFINITION OF "HEALTHCARE PROVIDER"…”
TO AMEND THE DEFINITION OF "HEALTHCARE PROVIDER" UNDER THE PATIENT PROTECTION ACT OF 1995; AND … J. Bryant Sine Die adjournment
SB142 · 1 mention in agenda
Matched: “…MBER 31, 2022, TO RESIDENTIAL BUILDING CONTRACTOR LICENSES. SB142 Irvin TO AMEND THE HEALTHCARE CONTRACTING SIMPLIFICATION AC…”
TO AMEND THE HEALTHCARE CONTRACTING SIMPLIFICATION ACT; AND TO REGULATE NETWORK LEASING UNDER THE HEALTHCARE … Irvin Sine Die adjournment
SB148 · 1 mention in agenda
Matched: “…HEALTHCARE SERVICES FROM PRIOR AUTHORIZATION REQUIREMENTS. SB148 Irvin TO AMEND THE PRIOR AUTHORIZATION TRANSPARENCY ACT. SB…”
TO AMEND THE PRIOR AUTHORIZATION TRANSPARENCY ACT. Irvin Sine Die adjournment
SB151 · 1 mention in agenda
Matched: “…DMINISTRATION OF THE ARKANSAS PREPAID FUNERAL BENEFITS LAW. SB151 C. Penzo CONCERNING THE TRANSFER OF REAL PROPERTY TO A REVO…”
CONCERNING THE TRANSFER OF REAL PROPERTY TO A REVOCABLE LIVING TRUST BY WARRANTY DEED. C. Penzo Sine Die adjournment
SB169 · 1 mention in agenda
Matched: “…CARE PROVIDER" AS USED UNDER THE ANY WILLING PROVIDER LAWS. SB169 J. Bryant TO AMEND THE DEFINITION OF "HEALTHCARE PROVIDER"…”
TO AMEND THE DEFINITION OF "HEALTHCARE PROVIDER" UNDER THE PATIENT PROTECTION ACT OF 1995; AND … J. Bryant Sine Die adjournment
SB183 · 1 mention in agenda
Matched: “…REAL PROPERTY TO A REVOCABLE LIVING TRUST BY WARRANTY DEED. SB183 C. Penzo TO AMEND THE EXEMPTIONS FOR LICENSURE UNDER THE RE…”
TO AMEND THE EXEMPTIONS FOR LICENSURE UNDER THE RESIDENTIAL CONTRACTORS COMMITTEE; AND TO UPGRADE HOME … C. Penzo Sine Die adjournment
SB295 Act 278 · 1 mention in chapter
Matched: “SB295 J. Dismang TO AMEND THE ARKANSAS RENEWABLE ENERGY DEVELOPME…”
TO AMEND THE ARKANSAS RENEWABLE ENERGY DEVELOPMENT ACT OF 2001; TO PREVENT COST-SHIFTING AND ENSURE … J. Dismang Notification that SB295 is now Act 278
SB41 · 1 mention in agenda
Matched: “…rs and Staff Only'. DEFERRED BILLS Number Sponsor Subtitle SB41 Hill TO REGULATE ENVIRONMENTAL, SOCIAL JUSTICE, OR GOVERNAN…”
TO REGULATE ENVIRONMENTAL, SOCIAL JUSTICE, OR GOVERNANCE SCORES OR METRICS; AND TO ALLOW THE TREASURER … Hill Sine Die adjournment
SB95 Act 368 · 1 mention in agenda
Matched: “…CARE PROVIDER" AS USED UNDER THE ANY WILLING PROVIDER LAWS. SB95 D. Wallace TO AMEND THE LAW REGARDING EMBALMERS AND FUNERAL…”
TO AMEND THE LAW REGARDING EMBALMERS AND FUNERAL DIRECTORS; AND TO REVISE THE DUE DATE … D. Wallace Notification that SB95 is now Act 368
SB97 Act 345 · 1 mention in agenda
Matched: “…ES UNDER THE LAW REGARDING EMBALMERS AND FUNERAL DIRECTORS. SB97 D. Wallace TO AMEND THE ARKANSAS PREPAID FUNERAL BENEFITS L…”
TO AMEND THE ARKANSAS PREPAID FUNERAL BENEFITS LAW; TO REGULATE PREPAID BENEFITS CONTRACTS; AND TO … D. Wallace Notification that SB97 is now Act 345

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Unknown speaker 0:13
This call this call a meeting to order created one coming out today have a great crowd looks like we have to be entertaining of information to to go over today it will start out the Senator Dismang where we jump right on top of it and we'll turn it over to you thank you Mister chairman how Senate bill two ninety five we actually have an amendment that's result of an agreement I believe that we had yesterday with the eight eighty a inflation the bill after testimony would explain what I. A. E. A. S.. Alternate some advanced alternative. Energy association thank you Sir. So. Members and so that what the amendment does is again further establishes the grandfathering pushes the date of the original in the bill it's at twelve thirty one of twenty three that pushes the date out to nine thirty twenty four for grandfathering that for those projects that are under five megawatts in size and they would be allowed to grandfather in for net metering for projects above the five megawatt if there is a contract in place as of yesterday then they are also grandfathered in for a submission to the PSC and so that's. Recently what the changes were for the bill additionally now sitting here again two there was a discussion about letting the complaint trigger grandfathering with the PSC it's my understanding that there is a process already in place at the PSC that there would not be needed additional language for that complaint process for them to be grandfathered in if that does not exist then we will have and you'll see me again with a piece of legislation to clarify that there's been a lot of talk about that this morning and again but my commitment stays the same that was yesterday in relation to that process if it does not exist for there's a misunderstanding of what that does or what allows for then we'll see me you'll see me again for another Amendment. What what we have in front of us is a The Amendment that stuff Senator Dismang is presenting to us is there any questions on the amendment. The Committee. Anyone here to speak for against the amendment. C. saying none Senate is nine you want to present your bill then and I knew we needed okay got a question here okay. Motion is second approved amendment okay all those in favor say aye. Clothes posing sign the minute passing Dismang you're free to present your bill as amended my goal in this presentation is probably different than it would have been prior to yesterday in the amendment that you just saw in the understanding that I have for an agreement between most of the parties not all of the parties and so I will try to keep my opinion out of it or my particular points of view and just keep to what the bill actually does I do believe it is a consumer protection bill for two particular reasons one is to address the cost shift that currently occurs with one to one minute metering as it stands right now and also provides consumer protections for residential solar it defines of what it costs as a twelve month average as of the wholesale cost as purchase it turn it terminates the current net metering of one to one or the practice of one one that metering and establishes two options for utilities to go through the first is to wait billing and the second is a great charging again that is for future customers everyone else per the dates we just talked about earlier would be grandfathered in on the current one to one net metering for those again I won't get into the we've already addressed the grandfathering partial will not do that one change that was also the amendment it move the original bill had went from five mile radius two hundred mile radius and so it does expand that out to a hundred mile radius begin with that we can kind of see how the testing goes today that's the nuts and bolts of the bill and be happy to take any questions okay hello I'm unless your question start with on it you've expanded it from a five miles two hundred miles that's correct means if you want to do a solar project you can put it in someone else has to look at it and you don't as long as it's under five megawatts FOR you've already have your contract in place as of yesterday thank you you could be larger. Any questions from committee president is mine. Senate if you if you don't mind sent could you about the options that you just got to wait billing agreed charge could you just going to a little bit of detail so that I understand that because I've had in a lot of people actually billing essentially says in it depends because some of these folks behind meters and some of or not behind my ears but if you're behind a meter using everything that you can use on your own anything in excess of that is pushed back out and required to be purchased by the utility at the wholesale cost for that would cost that we just discussed everything that you use in excess of what your production is you would pay the full retail just like all your neighbors and so that you to lay the great charge it is a structure that could be actually just simply up that fee or service charge I'm not a great charged that would be placed in the bill on the bill in lieu of that two way billing again utilities have the option to choose one for the other I'm not aware of any that wanted to use great charge at this point but that's essentially my Rep understanding and that great charge. We're not seeing a term by blue believe that has to be approved by the PSC. And on the to a billing whenever you say they've got to pay it it's not it's not just being given as credit. There's actually going to be calendar to a bill okay I understand thank you. Centreboard. Thank you Mr so come back real quick to this one hundred mile radius so the last few seconds are. Ma'am you can refer you to some papers across. I have. Okay that's the kind of kind of rude to what you did that. Okay thank you I work with a sense of what. Thank you Mr so I just wanna make sure I understood it because what what I'd heard about was we. We're looking at limiting it to a five mile radius but I understood you to say part of the amendment that was made that we just adopted was to expand that to a hundred mile radius that was at the request of members of the eighty day I'm in the Greek to by the utilities and I think most importantly by the sponsors of the bill. Good. Broke federal up so so that the hundred mile radius so would there be an option then to go between electric companies if we're going out a hundred miles that that's already prohibited amendment placed in in my understanding you mean it's not allowed to be done over multiple utilities as it stands right now. So you couldn't taken part of energy and then taking part of a co op and part of a genie or whatever to call. Any other questions maybe. Centerman. All right thank thank you senator later. Okay we're going to start with if if there's anyone here to speak for against the bill and you have not signed up I'm going to be an opportunity to come and sign up right now if you want to if not we'll go with what what we have in there is going to be no limit on the time we want to develop this out totally so we're not limiting people standpoint or anything else. So what will start out with the someone who is against the bill will actually start with the. Tad Bohannon. Good morning please introduce yourself for the record. My name is Todd Bohannon and I'm the chief executive officer of Central Arkansas Water which serves approximately five hundred thousand people one in six Arkansans. I am here today to speak against this bill just to kind of so you understand the rest of this bill for instance I was the one. Aston testimony yesterday that the five mile radius to your net metering facilities would of made a five million dollar investment by the customers by the ratepayers of Central Arkansas Water go away I mean it would not exist after twenty forty because that's when the grandfathering would go along and so I was one that requested it two six to go up to a hundred well I just access to be stricken but they went to a hundred miles but that doesn't represent all the problems for Central Arkansas Water in the in the bill. and so. I'll start with. With interruptible power because that is a big issue for us. this bill would prohibit Central Arkansas Water from choosing interruptible power as a terrorist to be governed by in its rates. Because we have a solar facility so is Central Arkansas Water has about forty meters on inter Jeez electric grid some of those meters are pump stations some of those meters are are administrative offices some of those meters or distribution center one of those many meters is a huge one out at lake Maumelle that drive seven large pulse. Okay we're working to go to interruptible power on those hopes that means whenever entered she needs us to they can call us up and we shut him down they are a big load on the system if they need that power if there's not enough power available we would need to shut down those pumps so if we went to interruptible power. So they want to say now now that we have a facility open cabinet because that's the only place that entered she said there was enough load we tried to locate seven or eight spots here in Pulaski County and every time we submitted it for a feasibility study they'd say nope on a float on a float so we finally found a Christian cabinet and we built it up there all right so. If we have of a solar facility working up there and we want to net meter back against our ministry of offices in our small pump stations and what have you this would prohibit us from going to interruptible power. The big pumps on like moment. That is a huge costs for ratepayers that should be available because it saving energy money by them being able to say Hey Central Arkansas Water you need to shut down the mere fact that are generating power open cab it doesn't change the economics are the power demand for insurgents if the solar power field is full power is putting power on the grid at a time when they have access demand they should appreciate that solar power coming on to the grid and then they have the extra step to say Hey Central Arkansas Water can you shut down your prompts for a little while. So interruptible power is something that's being taken away in this bill that is a huge. disincentive. For people to build renewable power. The other is and they say that powers grandfathered in twenty forty. But there is a loophole in that grandfather clause that you can drive a Mack truck through okay I'm going to find it in this bill because I just got the amended version. So have to find it in this feel real quick I was looking for when you call my name what if you remember it so well from the last time you presented it you can go and just go off member because that part should not changed C. Hey everyone says you get grandfathering to twenty forty if you have an existing facility. C. A. three. Service if. One or two applies to skip to consistent applicable to us but if one or two applies you are subject to any changes in rates. Charges there's a laundry list. So they serve the grandfather in twenty in paragraph one saying your grandfather till twenty forty seven two paragraphs later they say wait a minute if you're grandfathered under one. You're subject to this. Any new charges rates whatever that the electric utilities come up with. We do we take it away. you look at my notes here real quick. The other is the determination as to when the applications have to be to so we have four point eight megawatts one of my goals this year that has been provided to me by my commission that represent the ratepayers as you need to double. Alternative energy as part of a net zero plan as well as it's part of a cost savings plan okay. This bill we're out we're out of business we've got a four point eight that's all we get. There's already a procedure at the PSC between five and twenty megawatts for them to look look at net benefit cost shifting it's already there it's in the statute. This bill wipes out any alternative energy development past five megawatts is not is not available for us to look at four of four point eight were fundamentally done. I see is holding its but. Are you or are you there yet because I'm I'm gonna call the PSC up to Lowery much opportunity to respond to what you decision to call them out by name okay. without also I'll close on my comments that the we are Central Arkansas Water is against this bill okay what what you're saying Sir we got questions for you okay. Seventy nine thank you and just to make sure that I'm clear are you saying that you're guaranteed in your current structure one one net metering. To the PSC rule that we have. The one the weather isn't one because it's actually being withdrawn it was withdrawn or there are no more rules my understanding from this administration so there is no we on the order we have the order that we have the order that allows us to operate and grandfathers us. No Sir I don't I don't believe so but B. X. X. expand on that then December of nineteen most December of twenty twenty and I don't have a copy of it with me the PSC authorized us to To be party to of twenty four point eight megawatt facility that and because we applied between before the deadline before that we fell into the grandfathering rules that we weren't we weren't subject to the applicable rules okay and so with that but Allen we do guarantee that rate. Twenty forty okay so the twenty forty date plies either way correct but but subparagraph three says we're subject it basically cuts the twenty Fortner I thank per. Senator Johnson then senator. Thank you Mr chairman of Mister Han and you recently how say you meaning C. A. W. Went before little rocks are presented to Little Rock city board a schedule of estimated rate increases which caused a few people some consternation in my case I thought well it's almost healthy for a entity to to level with us about how costs are going to go up and how. We consumers may end up having to to do that obviously your energy costs were calculated into that formula that you presented cannot seem to present all the municipalities in your service area but the one that was talked about more as to what Little Rock work right assume that you this this particular issue and and your your overall energy costs were calculated into that to formula and estimation of of of increases would it be fair to say that this legislation throws a monkey wrench into the estimate and that we could expect water rates to go up I mean it would we know how this is going to affect we don't know how that's going to affect what we know it could it would affect electric costs but how would this affect water costs in the areas served by CA to. It are what we are revenue neutral so we look at our expenses and we calculate for the rates that we need to cover those expenses and so if our electric utility cost goes up in water rates will have to cover that additional cost so it would be fair to say that it messes with the estimates that you presented and at least the rate outlook that you he placed with the Little Rock city board that is correct okay just so you'll know with what we did in is we have a ten year rate we want to tell people we know we need to make significant capital investment so we're going to we're not going to come back every third year we're not going to come back here real years hello we need a little more money we said this is what we need this is what we're in the for the next ten years just so that people understand and I appreciate that because in too many cases entities. I haven't done that and we get blind sided we the General Assembly and there's also you know okay and I and I appreciate the fact that that any utility is subject to what's going on around them including inflation cost of you know this but this is a significant cost to your ability to supply water to the area you Sir that's correct okay well thank you truly bills or one of our biggest biggest bills the other the other thing I'd like to add without because you talk about cost if you don't mind real quick is that and this a rough I mean ratemaking is incredibly. Complex but roughly entered she is in. Yes she is nine point seven five percent return on capital investment so we made a five million dollar capital investment in solar power if inter G. made that same five billion dollar investment in solar power the ratepayers would also introduce stockholders four hundred and seventy five thousand dollars. So when we talk about cost shifting in the use of the lines to deliver that power and what have you you have to offset against that what the PSC under current rules would say enter G. you get to recover. From rate payers for the expended capital cost that they're not having to make you we build that five million dollars worth of solar power. Thank you Mr Bryant thank you Mr chairman. Senator thank you I'm just a couple things on it you talk about paragraph three can you be specific in the bill like web page and line numbers you're speaking about. With the amendments it changed everything so I'm looking for real quick that's fine I've got the amendment to but if you want to just use the original bill that's fine too. Okay Page sixteen. Hello in a. It's a instill three apologize Page sixteen eleven a it starts with the fourth inclined coming down if you're looking your skin color. That no Sir we line nine. The line nine okay paid sixteen line nine through using line nine okay line nine through Wells just line nine okay allowing a net metering customer that submitted a standard interconnection agreement which this state clearly applies to us to remain under the rate structure in effect before December thirty one two oh two two as set forth in the statute until June one twenty fourteen you see that language I skipped some language to the. What are sales no okay so well here's what it says if we had a rate agreement prior December twenty third to December thirty one twenty twenty two which we did we had a PSE or I'm so sorry what what the bill I'm confused okay I'm in the house bill or apologize I haven't seen the amendment for the well that's it no I don't know my phone hang on it's in the same place that we get political my phone. You know we thought this was going back to the house in the this one gonna run this morning. So. Okay at this point I tell you what I'm just going to hold that question and then you can find and get back to this and there's so many other people I know that need to take you just quick question about your facility in cabinets. how many acres. Remember exactly six seventy and we have we're using half of it I thank okay it's been a few years since we bought it so a clear cut it it was already clear because I had a field day field okay but is delighted to have us there the mayor was excited for us to be there well okay thank you I appreciate that but I guess my concern is what why can't why can't you use the structures like buildings structures. In order to to places that solar panels sure couple things one is the we the nature of our facilities lacks. Large roof expenses like we don't have a Walmart building with a great big large roof expense that we could put it on top of that we're about small pump house is we're talking about that but I'm not talking about other buildings maybe in the city I mean you're Central Arkansas I'm sure the City of Little Rock has buildings. Right sure the other part of is where they built for structural for instance we already have in plans to put it behind the meter between on top of the Ozark treatment plant which is was originally built in the nineteen thirties when we got dug into it when we're really looking at it the building structurally couldn't hold the solar panels with the same problem with that down in our ministrations building down on capitol Avenue yeah I understand that okay well I'm just looking at the the infrastructure you know cost of what you did and then the damage done to the hay fields and for livestock and wildlife and things like that that bother me but okay thank you. Thank you thank you for that I'm I'm simply going to come in I'll come to come to you I greatly appreciate you explain that to as far as being in cabinet which is where I'm from and I've had several people takes me and email me today about that beautiful structure that they look at every day when they come come to work what what is the purpose of a hundred mile radius we you mentioned that earlier would you would you explain that why would you not want to put it in your own backyard instead of somewhere else we tried to put it in our backyard. We tried on multiple occasions and every time we tried injured she said sorry president of sufficient demand there you can't locate it there. The political life she I took when every politician wants to be seen as green going to we were developing solar power in our facility moving it to cover it because that's the only place that interest you would approve. That's why it's there if you want to put if you want to put solar if you've said today Hey we want this capitol building to be solar powered. Absent injured G. doing something different you would be hard pressed to find a location that you could build solar power within five miles. Of this capital building. I thank you will mention wheelchair demand Senator Hickey. I'm fixing it go back simple because I've I've got to have it that way I kind of like stick means the with the. From my standpoint. I'm only by want to go all the way back to this so we you made a comment that of course your customers your temperature water customers would have increased cost without this. If I understand all this correctly. All the one to one is is basically saying what price you're going to get is that is that a true statement. Because you what you're saying is is that whatever the retail prices that the electric company is doing. That is the price or are sitting out to the customers. That's the price that you're going to be able to sell your excess back for is that without is that in the simple deal with is that what that means one to one. One the one yes okay all right thank you for that not trying to convert it because it'll your take me. But so. I guess I guess my thought with this so with all this is. Is sold so the thing is you're you're trying to set your price or the way the it was given to you with a one to one which is the retail that the energy that energy or eighty P. or whoever is doing this that's that's what they're selling it to their customers so you're selling it back. So alternately I guess I'm sitting here struggling. At some point. Or or. Blake the other electric people who do not have any solar. Is that not being put on their back someway somehow with the rate increases or something of that nature that when the Electric Company because they're being forced to do this it it all seems like to me that all this is is just the of musical chair thing and we're trying to act like solar is saving saving money to those customers but in the end it looks like to me whatever they are they're asking for the rate increase through PSC. That that's actually getting getting spread out across all the other electric tires across the entire state. We're where is my flaw in what I'm saying with that from a simple standpoint sure. I'm running power all day long okay okay. I have power facility where inter GS told us there's sufficient load to take all that power enter G. is already told us because they approved the site. They have a no flowed in that area to use every kilowatt of power we generate. So they're not having the flow of water through the dam to generate that power at that time they can flow that water at midnight. They're not having to run nuclear at that time to throw and they're not having to buy power from the grid. They're getting it for free. In an area where they needed by their own selection and saying yes you can put it there. But here I thought we'd just just for me so I can the but I thought this was all about the excess. Not that if you're behind the meter okay fair enough that's what is needed here that clarification so if you want me to so for me over here. I'm giving them the power in Cabot. With the low that they needed. And I'm using that as a. The administration building are the pump house our lake moment. This. So they don't have to we were really not talking about sending power from point a to point B. we're talking about items going back and forth real quick where the exactly set to generate power so we got I was vibrating real fast over here and I'm giving him that power for free. got Adams vibrating over here and I'm connecting that out I gave you power where you needed it. I'm using over here and the five interruptible power if you don't have enough power you can tell me to shut down I understand thanks for the explanation. I want you to tell everyone we use the word free twice Justin would you kind of elaborate what three electricity you're giving well actually it cost us six hundred and thirty two six hundred and forty two thousand dollars or something like that solar power's generating it and we're putting it all into the grid. We paid all the cost for the infrastructure to put it on the grid and we're putting on the grid for free it's just general boom here it is all we're asking for is a credit on this other meter over here so it's not for you well we're not no no no Sir yes yes I'm not is not free and there is a charge there okay speak the speak clear on that you're all sitting that's where that's where I went to I said putting here I'm using it over here thank you centerpoint. Thank you Mr chair I'm kind of like Senator Hickey of mixing things simple for me and so as I've been trying to digest this and understand both sides I've tried to relate it back so it's kind of a long question but I got a S. I think it's a simple question just come along what would happen to your water rates if the government said someone had to be allowed to use your water infrastructure all your pops all of your maintenance all that to deliver the water. That from somebody else and. Basically you had to pay those people whatever you collected for the water what would happen your water rates then. What would happen to our water rates the government said. Your use our infrastructure to move for. Someone else provide the water but they're using your people your pops everything you got to repair everything you got to maintain everything out to replace with Iraq water rates go up go down or stay the same depends if you change the what work we already have to do for everything. Are you going to report I already got a repair the water are you going to repair the line. If the if the line falls down from inter G. on ice they already they already got a repair and. Yes. Centerman okay. Anyone else have any questions for Central Arkansas Water. Thank you for testimony Sir thank you. Get your. We just want to walk out that actually should amends the speaking first we'll see if we can grab him real fast he has gone to court. Okay. Mister Mister chair just trying to understand this I'm I'm I have a question of things or alluded to we're where is this one to one where was it allowed was that the PSC and I think you said that we will have to get down here I guess I'm struggling with that within some legislation. Where we were we were part law well this or is there really something the PSC allows them. Well. What we will have PSCS okay right right right after he's he speaks against the please please introduce yourself up on the record. Thank you Mr chairman and the esteemed members of the committee I appreciate the opportunity to appear before you today my name is Jordan Tinsley I am a regulatory attorney practicing here in Little Rock I've been doing that for over a decade I represent a trade association of large industrial and agricultural organizations it's called Arkansas electric energy consumers incorporated our members include acme brick Arkansas lime Clearwater paper commercial metals company delek which is the lion oil oil refinery in elder radio active evergreen or dal steel lake says corporation Martin operating partnership producers rice mill resolute forest products Reynolds manufacturing riceland foods and Weyerhaeuser. Our organization strongly opposes this bill for a number of reasons which I will discuss There was lengthy testimony on the house side regarding a similar bill yesterday I think over four hours of testimony on on a similar bill. I want you all to know that the only witnesses who testified for the bill in that forum over that period of time were utility executives. And the witnesses who appeared against the bill run the gamut of industrial organizations municipalities pretty much everybody else in the state this bill is a wish list of power and money grabs by the monopoly utilities in this state I do agree with the sentiment that there may be cost shifting particularly with regard to rate payers that do not have a billing component that we call a demand rate component but this bill is not targeted at the rate payers that are actually causing that potential cost shift this bill is targeted at large customers like the ones I represent large industrial and manufacturing entities who might make a decision to install customer owned generation this is a bill designed to protect the monopoly on power generation that the regulated utilities currently have it does to some extent address cost shifting but it goes far far beyond what is required to do that and it is literally a dream bill for the utilities in this state I could not disagree more that is a consumer protection bill this bill is going to raise electricity rates for ratepayers all across the state of Arkansas it is also going to raise the costs of goods and services across the state of Arkansas let me explain why. You've heard a lot about cost shifting cost shifting cost shifting but there's another side of the balance sheet. That is the benefits of these facilities. When a customer installs its own power generator that defers the need for the utility to invest in power generation assets. And based on the way that utilities make money. That will generate ratepayer savings every time a utility spends a dollar it is guaranteed an opportunity to earn approximately ten percent return on that dollar. So just like Mr beau Hannon said if they were to build a five million dollar power plant the repairs would funds that and they would fund an additional sum that is designed to profit the utility shareholders because these customers are installing these assets themselves and spending their own capital investing and innovating the utility doesn't need to make those investments and that will save ratepayers money. that is the real purpose of this bill in my opinion is to eliminate customer owned generation at a large scale in the State of Arkansas. So we're in a new new era you know this is not a bill that's just about solar power I think that for some reason the legislature has seized upon that aspect of this issue but net metering encompasses a lot of different renewable fuels it encompasses wind facilities it encompasses biomass facilities a lot of the customers that I represent they have waste by products that are created in the course of their processes like a paper company for example they have a lot of wood by products that are created as part of their processes they could burn that to generate power and that would be considered a bio mass that would be disallowed or it would be impeded by this bill any number of renewable fuel sources would be impeded by this bill. So it's not this is not just about solar energy this is about customer options this is about giving customers flexibility this is about giving customers choices. Let's talk about other ways that this bill will harm the state of Arkansas the folks that enjoy the savings on their electricity bill as a result of installing their own production assets their own power generation assets. They have to compete not just with facilities and other states surrounding states but with multinational corporations you know I represent race producers race producers are frankly struggling in some ways because they have to compete with China and in China there are. Labor laws that don't look anything like there are there are here in the United States I mean there are any number of regulatory structures that we have here that do not exist in there which render that the race production over there. Very competitive compared to what we see here this bill will literally of laminate an opportunity for those race producers to innovate and invest and become more competitive you know and that's just one example the customers I represent are all in what are called energy intensive trade exposed industries and this bill makes it very difficult for those customers to compete with those other markets and it also makes it difficult for them to pass through the savings they enjoy on electricity bills to their customers you know at the end of the day the bottom line is the bottom line and if I go to the grocery store and I can buy you know nice paper towels for three dollars breaking by the same kind of paper tiles for four dollars I'm not by the three dollar paper towels this prevents the three dollar paper towels from being produced in Arkansas if it closes doors that businesses in Arkansas could otherwise use to innovate and make their goods and services more competitive this doesn't just apply to goods it also applies to services one of the one of the things that the current coverage that we have a question right here for you before we go too far because she didn't yes Sir of course Justin and there's a lot of folks that want to speak about this and and I appreciate your comments and things like that I just wish we could really talk to the bill itself in the way it's written in the problems that are in the bill and I I just I just respect everything that you're saying and I appreciate it very much and and and I just my my main question I just don't want to filibuster this process so that other people need to be able to speak to an and I appreciate your comments and I don't want to limit debate but we may have to just because of how long everybody is is is going which is fine but. I would love for you to give me a list of all the different things thank you for that center we're not the question we're not we're not going to limit debate we've decided we want everyone to speak whatever they want to say I don't have been we're told yeah well talk tomorrow yeah we've got plenty of time yes. We will take care that a lot. We will your motion that we would have that or not I'm looking at a. Question but my question is and you don't need to give it to me right now but I would love for you to give me a list of all the companies that you read off and all the different tax incentives tax advantages that we have given to all of those businesses from the state of Arkansas there's a lot of and sales there's a lot of tax exemptions and all of those companies have received over the years from this legislature thank you the and what when would I want to add to that and you need her question I want you to answer that question we're fixing after recess or yes Sir John for a little bit so I I'd like for you to finish up if we if there's any way possible before we do. Well I I have a lot more to say you know this I've been a regulatory law here for over a decade and there are things in this bill that even I have a hard time understanding rate I mean the implications of this bill I don't believe have been fully vetted and I think that to some extent asking this body to make a decision on this bill in such a truncated time frame is dangerous and flawed you know this is a very very complex bill I think at this point it's grown to almost twenty pages the language in here is dense I have a lot more points and I understand the need to adjourn I weeks I respect what you just said and we will allow you to express your opinion totally but we are going to adjourn until after after center just a few questions and we will start back with you yes Sir absolutely after get out of session so that we will be here that time I will I will make every effort to be here or not we'll bring you in late later on if you're not okay thank you Mister chair I appreciate that and I'd love the opportunity to answer questions before adjournment Johnston measure questions make a pass we thank you thank you Mr chairman I want to follow up on Senator Irvin's information she was requesting the gentleman could you also if you're getting the the listing of that tax breaks and credits that your clients have received could you also speak to their provide the same information on the amount of capital investment they made at that same time and also the number of jobs created or the total value of the payroll is increased by those clients if if you can it might be so astronomical that you say let's let's all that much less let you answer that after we come back if you would that what you have to have the baby may have your to get in this later Mister chairman but I did Senator made a great question I want to add to the information we would receive perfect greatly appreciate it I want to be here to answer to that it may be. A very difficult to to get that information in a timely fashion I mean. But we we are sorry we should be back in here about three o'clock roughly so he will have that length of time okay and we anticipate reconvening around three PM Sir we will we will reconvene fifteen minutes after session after the Senate adjourns yes okay I'll do my best to be back here and if not we'll hold you to the end thank you will make sure you get to say what you want to thank you until fifteen minutes a after session is for the Senate to return to the.
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Agenda

Call to Order

0:09

REGULAR AGENDA

0:11

SB94 K. Hammer TO MODIFY THE ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT.

SB295 J. Dismang TO AMEND THE ARKANSAS RENEWABLE ENERGY DEVELOPMENT ACT OF 2001; TO PREVENT COST-SHIFTING AND ENSURE FAIRNESS TO ALL RATEPAYERS; TO CREATE THE CUSTOMER PROTECTIONS FOR NET-METERING CUSTOMERS ACT; AND TO DECLARE AN EMERGENCY.

0:25

SB297 J. Dismang TO AMEND THE ARKANSAS UNDERGROUND FACILITIES DAMAGE PREVENTION ACT; AND TO DECLARE AN EMERGENCY.

SB178 K. Hammer TO AMEND THE ARKANSAS HEALTH CARE CONSUMER ACT; AND TO PROVIDE REIMBURSEMENT AND BENEFITS FOR MENTAL ILLNESS AND SUBSTANCE USE DISORDERS THAT ARE DELIVERED THROUGH A PSYCHIATRIC COLLABORATIVE CARE MODEL.

HB1360 McGrew TO ALLOW RESIDENTIAL ELECTRICIANS TO PERFORM WORK ON THREE AND FOUR FAMILY HOMES; AND TO AMEND THE LAW CONCERNING DEFINITIONS OF ELECTRICIANS.

Recess

46:21

Speakers