Entergy Arkansas President and CEO Laura Landreaux is disputing recent news reports concerning Google’s payments toward the Arkansas Cypress Solar facility.
Landreaux addressed the issue in a letter sent directly to Entergy Arkansas customers. She said the letter was intended to correct what the company considers inaccurate or incomplete information published about the agreement.
Landreaux acknowledged concerns surrounding the arrival of data centers in Arkansas and the possible effects those facilities could have on local communities and utility customers.
“The truth is simple: Google is making a significant investment that benefits all Arkansas customers and is paying 100% of its power needs, and more,” Landreaux wrote.
According to Landreaux, the agreement is expected to provide approximately $1.1 billion in benefits to Entergy Arkansas customers. She said those benefits are expected to result in utility rates that are lower than they otherwise would have been without the agreement.
Landreaux said the contract contains several protections for customers. Those protections include substantial termination penalties and guarantees if Google ends the agreement early.
She said Google will also make monthly payments during the entire 20-year contract and contribute toward fixed costs that would otherwise be shared among Entergy Arkansas customers.
Landreaux also challenged figures reportedly published concerning Google’s total payments toward the solar facility.
According to the letter, published figures included $443 million plus a minimum of $83 million annually for 20 years. Landreaux said those figures would produce a total of approximately $2.103 billion.
“The reports understated Google’s payments toward the solar facility,” Landreaux wrote.
She compared the calculation to a car loan in which only the down payment and the 1st year of payments were counted while the remaining payments were excluded.
Landreaux also addressed Entergy Arkansas’ decision to pursue legal action intended to keep certain information from being released publicly.
She said the information involved confidential customer information that had been shared outside the company’s control. Landreaux said Entergy Arkansas sought legal action because the company is required by state law to protect confidential customer information and believes protecting that information is the right thing to do.
The letter also directed customers to Entergy Arkansas’ Fair Share Plus pledge, which the company says is designed to protect its broader customer base as large industrial customers and data centers begin operating in the state.
“As always, we remain steadfast in our commitment to delivering safe, reliable, and affordable power to all our customers,” Landreaux wrote.
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