ROGERS -- The Legislature could improve the state's business climate by allowing businesses generating electricity with solar panels and other renewable energy sources to sell more of it to utilities, lawmakers were told Thursday.
At least one lawmaker at the joint meeting of the Senate and House committees on Agriculture, Forestry and Economic Development expressed concern over the idea. It would create instability and drive up electric rates if utilities were made to buy electricity instead of generating it, said Sen. Eddie Williams, R-Cabot.
Renewable sources don't generate as many emissions as coal, but coal is still the cheapest way to generate electricity, Williams said.
The agriculture committees 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.
Arkansas passed a law in 2015 allowing business owners to get 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 300 kilowatts an hour can supply any electricity it doesn't use to the electric grid and earn a credit that applies to its electric bill.
Residential customers have a similar opportunity, but they're limited to 25 kilowatt hours.
The law, Act 827 of 2015, 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, told the committees his company and other business would like to see the 300-kilowatt cap raised.
The issue is expected to be a topic 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.
NW News on 05/27/2016