The Arkansas Public Service Commission has approved plans for a new $2.6 billion natural gas power plant near Newark that will provide electricity to Arkansas Electric Cooperatives Corp. members across much of the state.
The 1,499-megawatt facility, known as IGP 3-6, will be constructed near the existing coal-fired Independence Power Plant in Independence County. Construction is expected to be completed by the end of 2030.
Arkansas Electric Cooperatives Corp. provides wholesale electricity to 17 electric distribution cooperatives, which in turn serve approximately 1.3 million Arkansans in 74 of the state’s 75 counties.
According to regulatory filings, Arkansas Electric Cooperatives Corp.’s share of the project is estimated at approximately $1.96 billion. Municipal utility partners, including electric utilities in Conway, Jonesboro, and West Memphis, are expected to fund the remaining portion of the project cost.
The corporation estimates the project could increase the monthly bill of an average residential cooperative customer by approximately $6.65 per month. However, officials noted that actual impacts could vary based on future retail rates established by individual distribution cooperatives.
The corporation stated it is not seeking a special rider on customer bills to finance construction and plans to incorporate project costs into future rates. Officials also noted that anticipated market benefits from the facility could help offset some of the projected costs.
The new plant is expected to play a significant role in meeting future electricity demand while providing additional power generation capacity for cooperative members throughout Arkansas.
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