Generating Arkansas Jobs Act facts

Setting the record straight

Arkansas is experiencing remarkable growth across its residential, commercial and industrial sectors. This surge in economic development is unprecedented, with momentum building in areas such as lithium, steel, aerospace, manufacturing, defense, and technology. Arkansas needs power for the future and meeting this growth requires replacing aging generation and retiring plants, building new power plants, and expanding transmission and current infrastructure, all at a pace the old system couldn’t support without the high costs of construction.

The Generating Arkansas Jobs Act (GAJA) Rider is a tool that helps pay the financing costs of new power plants and grid improvements while they are being built. Paying those financing costs gradually lowers the overall cost of the projects and avoids a larger rate increase once construction is complete. This forward-thinking mechanism is making these projects less expensive for customers and these investments help ensure Entergy Arkansas has enough reliable power to serve customers as electricity demand grows.

Types of energy resources that are being added as part of the GAJA Rider

Ironwood Power Station
We just broke ground on a 446 MW modern, fuel‑efficient natural gas plant in Hot Spring County designed to provide reliable dispatchable power capacity as Arkansas’s electricity demand grows. Ironwood helps improve system reliability and reduces long‑term customer costs by generating more electricity at a lower fuel cost.

Jefferson Power Station
We plan to build a 754 MW large‑scale, highly efficient natural gas plant in Jefferson County near Redfield that will provide affordable, reliable energy for decades to come that will support statewide economic development and rapid load growth. The facility strengthens grid reliability and is part of the multi‑year plan to expand and modernize Arkansas’s energy supply.

Arkansas Cypress Solar and Battery
We plan to add 600 MW of solar power and 350 MW of battery storage from the new Arkansas Cypress facility in Jefferson County, which will provide clean, renewable power that lowers fuel charges on customer bills. Google will cover the full cost of the resource over the life of the contract, even though it will be an Entergy Arkansas system resource, meaning the power it produces will be available to serve customers across the system, not just Google.

Google’s relevance to this discussion

Google’s project in West Memphis provides a real-world example of a transformative investment with potential benefits for local communities, infrastructure, and economic growth.

Quick facts:

Google is paying for 100% of its power needs and more.
Google’s contract includes termination penalties and guarantees designed to protect other customers.
Google is making monthly payments for the full 20-year term, providing long-term protection for other customers.
Just as other customers do, Google also is contributing to fixed costs, so that other customers pay less.

These commitments align with our Fair Share Plus Pledge and the federal Ratepayer Protection Pledge, delivering the single largest benefit to all existing customers in Entergy Arkansas’s history.

Data centers
The large amounts of electricity data center facilities require has raised questions nationally about how that will impact the price and reliability of power for existing electric customers. The agreement with Google is expected to deliver $2.1 billion in customer savings and will result in utility rates that are lower than what they otherwise would be.

We enter into thoughtful data center customer service agreements that require them to pay the direct power costs to serve their facilities and provide added benefits for existing customers — this is our Fair Share Plus Pledge that protects our more than 738,000 customers in Arkansas. Additionally, the Arkansas Public Service Commission have exercised oversight to ensure these projects do not negatively impact electric customers in Arkansas who are sharing the same power grid.

In addition, new large industrial customers help pick up a larger share of the grid maintenance improvement costs that residential and small business customers would otherwise have to bear alone.

The bottom line
The facts matter. Google’s agreement was structured to protect Entergy Arkansas customers, ensure Google pays its full cost of service and deliver significant benefits to customers across the state. We remain committed to transparency, protecting customer information and correcting misinformation when it occurs. As Arkansas continues to grow, Entergy Arkansas will continue working to ensure new investments benefit the communities we serve while keeping reliable, affordable power at the center of every decision.

Frequently asked questions

What is the Generating Arkansas Jobs Act (GAJA) Rider that I see on my bill?

The Generating Arkansas Jobs Act (GAJA) Rider helps pay the financing costs of new power plants and grid improvements while they are being built. Paying those financing costs gradually lowers the overall cost of the projects and avoids a larger rate increase once construction is complete. These investments help ensure Entergy Arkansas has enough reliable power to serve customers as electricity demand grows.

Why is the Generating Arkansas Jobs Act needed?

Recognizing the state’s need for additional power capacity and the high cost of construction, the Act helps lower the financing costs associated with new power plants. This forward-thinking mechanism is making these projects less expensive for customers.

The Act maintains the Arkansas Public Service Commission’s regulatory oversight, streamlines regulatory processes, and enables constructing reliable and affordable power resources so Arkansas can capture these opportunities while keeping customer rates stable and affordable.

Why am I paying for growth now?

Entergy Arkansas is investing now in order to be prepared to meet the needs of our customers, present and future. Making these investments now also helps ensure the power system is ready for growing demand from homes and businesses. Having that capacity supports reliable service for customers and helps Arkansas compete for new businesses and jobs.

Is this growth due to data centers?

Data centers are contributing to an increase in overall power demand but NOT an increase in residential power bills. Arkansas’s electricity demand is growing across multiple industries in our state such as lithium, steel, aerospace, manufacturing, defense and technology. Entergy Arkansas was already planning investments in new power generation and upgrades to aging infrastructure before the recent data center projects were announced. Data centers will add new electricity demand, but they are paying for their own power needs and are only one part of the broader statewide growth that Entergy Arkansas is preparing its power system to serve.

Will all customers be paying for the Arkansas Cypress Solar power plant through the Generating Arkansas Jobs Act rider?

The Generating Arkansas Jobs Act allows us to responsibly build the infrastructure needed to support the state’s growth across all sectors, while keeping power affordable and reliable for all customers. Because Arkansas Cypress Solar serves the broader Entergy Arkansas system and must go through the normal regulatory process, it appears on customer bills like other generation projects, but Google’s cost responsibility ensures those expenses do not shift to other customers. Google will cover the full cost of the Arkansas Cypress Solar facility during the term of contract. This means that all other customers will receive the benefit of the clean energy produced by the facility without having to pay the investment cost needed to produce this energy.

Why are my electric bills higher now compared to previous years?

Costs across all sectors of the economy have gone up, and utilities are feeling the same pressures – including expenses such as fuel, transformers, equipment and the normal cost of doing business. Additionally, we have experienced some of the hottest temperatures on record, driving up summer utility usage more than ever before. And we continue having to replace aging infrastructure and invest in our grid to provide reliable service. Despite these inflationary pressures, we work hard to keep bills as low as possible, and our rates are still 22% below the national average.

Are Entergy Arkansas customers paying for data centers?

NO. Existing customers will not bear the long-term costs of serving data centers. Large customers, including data centers, will pay the costs associated with their appropriate share of the power system they use. Customers are currently paying certain financing costs associated with system-wide investments, including Arkansas Cypress Solar, Ironwood Power Station, and Jefferson Power Station, because all customers will benefit from their use. When Google begins taking service, it is expected to financially support the full investment cost of Arkansas Cypress Solar over the life of its contract. This is a great deal for our customers because they will share in the clean, low-cost energy produced at Arkansas Cypress Solar without having to pay the associated investment cost once Google begins taking service. One of Entergy Arkansas’s unwavering principles is that these large new customers pay their fair share without shifting their long-term costs to existing residential and small-business customers.

Is Arkansas Cypress Solar included in the Generating Arkansas Jobs Act (GAJA) Rider on my bill?

Yes. For a residential customer using 1,000 kWh, approximately $1.76 of the $5.77 GAJA Rider is currently associated with Arkansas Cypress Solar. The remaining amount primarily supports Jefferson Power Station and Ironwood Power Station. Arkansas Cypress Solar is being built as an Entergy Arkansas system resource, meaning the power it produces will be available to serve customers across the system, not just Google. When Google begins taking service, it will ultimately pay the cost of Arkansas Cypress Solar over the life of its contract, while the power generated by the facility will continue to benefit the broader Entergy Arkansas system.

Why is Arkansas Cypress Solar included in the Generating Arkansas Jobs Act (GAJA) Rider if Google is paying for the facility?

Arkansas Cypress Solar is included in the GAJA Rider because it is being built as an Entergy Arkansas system resource that will serve the broader power grid, not as a facility exclusively for Google. That means customers are currently paying a portion of construction-related financing costs through the GAJA Rider.

When Google begins taking service, it will ultimately pay the cost of Arkansas Cypress Solar over the life of its contract.

Simply put: Entergy Arkansas customers will get power from Arkansas Cypress Solar, but unlike with other power plants, they are only providing initial financing for the facility. When Google comes online, it will cover all the construction cost for Arkansas Cypress Solar during its contract. That means, thanks to Google, Arkansas Cypress Solar is the one power generation plant that Arkansas customers will get power from without having to pay the full cost to build.

Who reviewed Google’s agreement if most of it is not public?

The complete agreement was submitted to and approved by the Arkansas Public Service Commission after review by the Commission and its staff and the Arkansas Attorney General. Certain commercial terms remain confidential to protect customer information and competitively sensitive business information.

The media are saying that Entergy isn’t being transparent and that the contract hasn’t been made public; is that true?

No, that is false. While Google’s electricity contract may be confidential to newspapers, it was provided in full and reviewed in detail by the public officials who regulate state utilities and protect the public interest and customers, including the Arkansas Public Service Commission and its staff and the Arkansas Attorney General.

Why can’t Entergy share Google’s contract agreement?

We cannot share the information because it is confidential and business sensitive, and sharing it could cause competitive business agreements in the future that bring jobs and other benefits to customers to not come to fruition. Customer privacy is very important to Entergy Arkansas, and maintaining that privacy is not only the right thing to do – it’s the law. The company protects all customer information – whether it involves a household, a local manufacturer, or a global company.

Why is Entergy working under a nondisclosure agreement (NDA)?

Entergy routinely participates in economic development project pursuits with local and state partners. It is common that an NDA is requested by an interested party during the early stages of scouting locations for a new business investment. If the project requires a non-standard contract, we work with our regulators in an open and transparent process that requires their ultimate approval in order for the project to move forward. As a power provider serving Arkansas, we are eager to help attract and support business investments that will grow jobs and incomes in the communities we serve.