Welcome to the Arkansas Electric Energy Law Blog
Energy law and policy are important issues in our time. On the one hand, energy needs are projected to grow at an accelerating rate, taxing the supply of available energy resources and increasing our dependence on foreign sources of energy. On the other hand, energy generation, transmission, distribution, and consumption contribute to climate change and have other adverse environmental consequences. Supplying our energy needs now and in the future --at a reasonable cost and with the least possible negative impact on the environment -- is a challenge that confronts us all.
However, there are opportunities in these challenges, particularly in the field of electric energy. While still small, the share of utility scale electric generating capacity taken by wind, solar, geothermal, biomass and other renewable and alternative sources of energy will only grow. Even so, those sources of electricity generation currently have their own limitations, such as reliability for b
ase load, along with siting and transmission issues. While those alternative sources of energy hold out promise for the future, the current reality is that older and cheaper technologies for producing electricity, like coal and natural gas fired power plants and nuclear power, will be the primary sources of electric energy for the foreseeable future. But some argue advances in clean coal technology and carbon capture and sequestration will reduce the environmental impact of those sources of electric energy. Although, cap-and-trade legislation such as the American Clean Energy and Security Act of 2009 (Waxman-Markey), which attempts to impose the true costs of those dirtier technologies, could put renewable energy resources on an equal economic footing.
Moreover, new technologies in demand side management hold out the promise of increasing energy efficiency in ways that are both observable and measurable by the average electric energy consumer. Advanced metering and smart grid technologies, coupled with appliances equipped with computer chips to communicate with the meter, and software to measure and report electric usage, will empower consumers to take more control over their own energy usage. Those same technologies, including net metering, will increase the effectiveness of distributed generation systems like residential solar and small wind installations. All these advances will change the consumer's relationship with their electric power supplier. Thus, new regulatory and rate-making mechanisms must be studied, including decoupling of the rates electricity distributors charge from the amount of electricity supplied.
These are interesting times for electric energy law and policy, and Arkansas is at the forefront of confronting the challenges and capitalizing on the opportunities. For example, the continuing fight over the location of SWEPCO's John W. Turk coal-fired generating plant in Hempstead County has implications for electric generation and transmission in Arkansas and across the nation. And, with the location of LM Glasfiber and Nordex wind turbine blade manufacturing facilities in Arkansas, the alternative and renewable energy sector is contributing to economic development and job creation.
At the Hughes & Hughes Law Firm we have been following these issues with interest. We want to be a participant with you in meeting the challenges of our time. Therefore, this blog is designed to be a source for news and commentary about electric energy law and policy that effects Arkansas business, industry, municipalities, landowners, consumers, and others. We hope you will join our conversation.
