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Understanding the Integrated Resource Planning Process in Arkansas
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Understanding the Integrated Resource Planning Process in Arkansas

  • Integrated Resource Planning (IRPs) is the first step utilities must take to build new power plants
  • Arkansas began mandating IRPs in 2007 and utilities usually submit a new plan every three years
  • IRPs can give a sense of where the utility is moving, but it doesn’t restrict them to one set path 

Integrated Resource Planning (IRP) is a public process through which utilities design a plan for meeting the energy needs of their customers in upcoming years. The IRP process is critical because it “gives regulators and other stakeholders to look under the hood and double check the math from the utilities,” said Southern Renewable Energy Association Executive Director Simon Mahan

Arkansas started mandating Integrated Resource Planning in 2007, and typically, a utility needs to submit an integrated resource plan at least every three years. As Mahan alluded to, the process is critical for regulators and the public to understand how each utility aims to meet future electricity demand.

Over a series of months, a utility company will develop the plan, setting large strategic goals with input from regulators and the public. For example, in Entergy Arkansas’ most recent IRP in 2024, the company highlighted an enormous commitment to renewable energy development, including by saying the utility would have 3,000 megawatts (MW) of renewable power generation by 2030 while decommissioning two coal plants. 

Both Entergy Arkansas and Southwestern Electric Power Company (SWEPCO) conducted their last IRPs in 2024, meaning they will likely begin the next IRP next year in 2027. During past IRPs, utility companies have publicized plans and held stakeholder hearings to hear from ratepayers and others.

“An IRP is the first step for a utility to build new power plants that could ultimately impact your electricity bill,” Mahan said. “The IRP is generic, but you go from that to specific with an RFP, or request for proposals, and then you go from that to a Certificate of Public Convenience and Necessity (CPCN) or a Certificate of Environmental Compatibility and Public Need (CECPN) where a specific power plant is actually approved. What is not included is the cost - that is usually recovered in another docket called a rate case.

The IRP process is where you can begin your engagement with the broad strategic energy goals of a utility, but engagement at such an early phase in grid planning also has its frustrations. 

Mahan compares an IRP to a compass. While it may provide folks on the outside a glimpse of what direction a company is moving, it doesn’t necessarily bind them to a specific path to getting to that destination. And the difference between a map and a compass is where the IRP process can become less helpful and more frustrating for renewable energy advocates and stakeholders.

An IRP does not bind the company to pursuing a certain course of action, but it remains an integral way for the public to engage with their utility on the future of the electricity grid.

The IRP process is where policy meets daily bills, and your voice is what matters. If we want affordable, reliable power and a grid that supports local jobs, we have to show up. Showing up looks different for everyone - maybe it looks like attending stakeholder meetings, submitting a brief comment with one concrete question about bill impact or local jobs, and inviting a neighbor to participate. 

Showing up also can be as simple as finding the upcoming IRP docket (e.g., 07-016-U for Entergy and 07-011-U for SWEPCO) and asking the public utility to be put on the stakeholder list to participate in the stakeholder process; contributing to the stakeholder committee report that is filed with the IRPs; submitting a public comment for Commissioners and staff to read; and sharing this with local groups and asking others to participate. Learn more about participating at https://apsc.arkansas.gov/consumer-services/participation-in-public-hearings/

 

Writers with the Southern Renewable Energy Association and Powering Arkansas are writing these stories because regulatory decisions shape everyday life, from affordability to reliability, and yet they’re still often a mystery to the average consumer. Our aim is to provide transparent recaps of these meetings and show how you can participate in public comment or hearings. Keep up with regulatory affairs in Arkansas by following Powering Arkansas on Facebook and sign up for email updates

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The coming years will test our state’s electric grid. Powering Arkansas is a nonpartisan coalition of Arkansans united to engage and empower voices across The Natural State who support utility-scale renewable energy developments. Our mission is simple: accelerate energy growth in Arkansas by connecting people who understand that a modern, reliable grid requires local, scalable solutions.

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