[0:16] medium of joint energy will come
[0:18] to order apologize for the delay
[0:20] but we had an importantowerPoint
[0:22] we needed to get loaded so
[0:24] thank you for all being here on
[0:25] this beautiful cool day
[0:28] you're your meter is running in
[0:32] case you're wondering the
[0:32] chair would introduce a motion
[0:34] to approve the minutes of the
[0:36] August6th meeting moved by
[0:38] Senator Mcee is there a second
[0:40] Representative Beck Second all
[0:41] in favor say aye
[0:44] pose thank you that's approved
[0:48] we will move on to item C
[0:48] discussion of data center
[0:50] development in Arkansas our
[0:51] first witness is Miss Rachel
[0:53] Wilson with Google. Miss Wilson,
[0:55] I think we got your uhowerPoint
[0:57] loaded and please come to the
[0:57] table
[1:02] and
[1:06] if you'll pull that mic close to
[1:09] you and push that button and
[1:09] identify yourself
[1:11] for the record
[1:17] my name is Rachel Wilson and I'm
[1:18] with Google.
[1:19] thank you ma'am. you're
[1:22] recognized to begin your
[1:22] presentation oh and you do have
[1:24] a handout that was also
[1:28] if people look if you don't have
[1:30] it ask the staff but you should
[1:31] also have a handn handout
[1:34] ok please proceed thank you good
[1:35] afternoon Chairman Johnson,
[1:36] Chairman Mcairn members of the
[1:38] committeechnology never ceases
[1:40] to surprise us I will say after
[1:42] this so thank you so much for
[1:44] having me today it's great to be
[1:45] able to talk to you about
[1:46] Google's data centers more
[1:49] broadly and are specific data
[1:49] centers that are under
[1:50] construction in Arkansas.
[1:54] I think there's a lot of
[1:56] unknowns or misconceptions about
[1:57] what a data center is and what
[2:00] it does it is not exclusively
[2:01] for the purposes of AI
[2:02] development Google's data
[2:04] centers power all of our
[2:07] products that we either give or
[2:08] sell to customers and I'm sure
[2:10] many of you in this room use
[2:12] many of those products you can
[2:14] see from these icons here those
[2:16] include searchch, Chrome cloud,
[2:19] Youube which my children cannot
[2:21] get off of so I appreciate
[2:21] the the
[2:24] demands that's happening in my
[2:26] own house it's not just your'm
[2:28] glad to hear that gmail maps all
[2:29] of the things that we do in our
[2:31] daily lives using one of our
[2:33] many devices those google
[2:34] products are powered by google's
[2:35] data centers.
[2:39] we have32 locations for our
[2:41] owned and operated data centers
[2:43] across four continents. This map
[2:45] shows the data centers that are
[2:46] operational there are also a
[2:48] number of data centers that we
[2:49] have under construction that are
[2:51] not yet shown on this map but
[2:52] when those facilities are
[2:54] energized we will add them here
[2:56] and we keep this page up to date
[2:59] on our website not a website
[3:00] gives information about our data
[3:02] centers and all of the locations
[3:03] more broadly if you're
[3:05] interested in a specific su if
[3:05] we were to go to the website
[3:08] we could zoom in on that big
[3:10] bunch of dots in the US that's
[3:12] correct and you could see
[3:13] exactly where each of those dots
[3:14] are sighted there are a couple
[3:16] of locations here that are
[3:18] actually home to more than one
[3:19] data center so you can see the
[3:20] low country in South Carolina
[3:22] that actually hosts two that are
[3:24] operational in one that's under
[3:25] construction so there are some
[3:28] facilities where one
[3:29] particular location hosts
[3:29] multiple sites.
[3:34] here in arkansas we have one
[3:36] data center that is currently
[3:37] under construction in West
[3:38] Memphis we announced that site
[3:40] last year. it represents a4
[3:42] billion dollars capital
[3:44] investment from Google and we've
[3:46] partnered with Entergy to cover
[3:49] the full cost of service for our
[3:51] demand at that site entergy's
[3:52] analysis showed that over the
[3:54] lifetime of our 20 year contract
[3:57] that contract will yield $1.1
[3:58] billion in net benefits to
[4:01] Arkansas ratepayers and that
[4:01] contract also supports the
[4:04] development of a project called
[4:06] Cyprus solar which is a600
[4:08] megawatt solar and350 megawatt
[4:09] battery storage facility
[4:12] as I mentioned that site is
[4:13] currently under construction we
[4:15] are undergoing grading and
[4:17] substation prep now but things
[4:19] change very rapidly and that
[4:20] site is expecting to be
[4:22] energized in 2027.
[4:25] Here in littlettleRock we do
[4:27] have a site for data center
[4:28] development we're currently
[4:31] engaged in the very extensive
[4:34] due diligence process we are
[4:35] engaged with our stakeholders
[4:36] listening to the needs of the
[4:40] community and the desires around
[4:41] development at that particular
[4:44] site we had filed for a wetlands
[4:46] permit initially we've pulled
[4:48] that permit subsequently and are
[4:49] currently making the necessary
[4:50] modifications before we refile
[4:56] as you can see from this chart
[5:00] and from the site map that
[5:01] doesn't yet show those data
[5:02] centers that are under construct
[5:04] or those data centers that are
[5:05] under construction are not yet
[5:06] shown on this map Google's
[5:08] energy demand is growing
[5:12] exponentially over time and
[5:12] it is this energy demand that is
[5:13] fueling
[5:16] demand in the markets for power
[5:17] from our utility partners.
[5:22] what are we doing about that a
[5:22] couple of things because we
[5:24] found that the traditional
[5:26] utility model of building large
[5:28] scale generation projects that
[5:30] take multiple years aren't
[5:34] meeting the desire for speed to
[5:34] construct the infrastructure
[5:36] that Google needs to serve its
[5:38] customers so we've had to
[5:40] rethink some of the traditional
[5:42] business models for power we
[5:43] rely very heavily on our
[5:44] industry and utility partners to
[5:46] help us come up with these
[5:48] solutions to build projects that
[5:49] meet Goog
[5:52] g le ' s customer demand. We
[5:52] have a customer demand for
[5:54] specific types of energy and in
[5:56] order to retain those customers
[5:57] we need to meet that demand
[6:00] and so we rely on our partners
[6:02] to help us think creatively
[6:04] implement these solutions build
[6:06] generation projects like cyprus
[6:06] solar but that could also
[6:10] include small modular reactors
[6:12] operates at existing nuclear
[6:14] units advanced storage at longer
[6:16] durations these new types of
[6:18] things that will enable clean
[6:20] power at scale and delivered
[6:21] to our customers
[6:28] those policies come for come
[6:30] forward in our contract
[6:30] frameworks that we have with
[6:32] Entergy and others we have
[6:34] collaborated closely with a
[6:36] number of different utilities
[6:37] across the country to implement
[6:39] a certain number of principles
[6:40] to protect ratepayers against
[6:42] bearing the burden of Google's
[6:44] energy cost so those principles
[6:46] include long term commitments
[6:48] our contracts with our utilities
[6:50] are typically at least 15 years
[6:52] Our contract here with
[6:54] enterntery is 20 years it
[6:54] includes minimum billing demands
[6:58] and what that means is we commit
[7:00] to paying a high percentage of
[7:02] our ultimate demand in minimum
[7:04] bills every month regardless of
[7:06] whether we use that volume of
[7:07] energy or not so when we say
[7:10] we're paying 80% of our
[7:12] contracted demand we will pay
[7:12] that regardless of whether our
[7:16] use is50%60% and if it's above
[7:18] 80% we'll pay the additional on
[7:19] top of those minimum bills
[7:24] we provide extensive upfront
[7:26] collateral and we have stringent
[7:29] exit and termination fees so if
[7:30] Google decides that it's that
[7:32] Arkansas is no longer a feasible
[7:34] market and we need to exit that
[7:36] contract. oftentimes we we wind
[7:39] up paying the completion as if
[7:40] the contract were fulfilled and
[7:42] exit fees and we do that so that
[7:44] customers are not left holding
[7:45] the bill for infrastructure that
[7:47] we've asked the utility to
[7:47] develop to power our data
[7:48] centers
[7:52] so in this way we're helping to
[7:54] bring relief to repairs
[7:56] spreading the portion of fixed
[7:59] costs on the utility system over
[8:01] our larger load which results in
[8:02] net savings to other ratepayers
[8:03] on the system
[8:07] Some of the energy highlights
[8:09] that all mention here we've
[8:10] partnered with a number of
[8:12] developers to bring new types of
[8:14] technology to the grid on the
[8:16] nuclear front we're looking at
[8:18] repowering existing facilities
[8:20] that have shut down across the
[8:21] US one of the most recent
[8:22] examples is our partnership with
[8:24] Nexxtera Energy to restart the
[8:26] Duanne Arnold power plant in
[8:28] Iowa we're also looking at
[8:30] development of small modular
[8:32] reactors we have a partnership
[8:34] with an entity calledairos
[8:34] Energy for50
[8:38] 0 megawatts online by 2035, the
[8:40] first project broke ground last
[8:42] year that is with TVA in
[8:44] Tennessee and it is a fi0
[8:46] megawatt project we're currently
[8:47] looking for a home for the
[8:50] additional450 megawatts and then
[8:52] we have a 200 megawatts
[8:53] partnership with Commonwealth
[8:56] Fusionystems the date on
[8:58] those technologies is still to
[8:59] be determined but we are looking
[9:00] to bring those forward as soon
[9:01] as possible.
[9:04] we're partnering on advanced
[9:06] geothermal technologies this is
[9:08] primarily targeted in the west
[9:10] at this point though I
[9:11] understand that Arkansas has
[9:12] some advanced geothermal
[9:14] potential in the southern part
[9:15] of the state. We are
[9:16] collaborating with an entity
[9:18] called Fervo on 115 megawatt
[9:20] contracts for a first of aki
[9:22] project in Nevada and then we're
[9:24] also working on a number of
[9:26] different long duration storage
[9:27] projects so these are batteries
[9:29] that are capable of injecting
[9:30] power into the grid for
[9:31] sustained amounts of time
[9:34] Currently the standard is
[9:35] lithium ion technologies which
[9:36] can release power for about four
[9:38] hours at maximum we're looking
[9:42] at projects that can do 8,12,24,
[9:44] even 100 hours and those will
[9:46] preserve reliability at lowest
[9:47] cost to customers and ratepayers
[9:52] in terms of the red the US
[9:54] transmission infrastructure is
[9:56] aging it needs replacement but
[9:57] construction of transmission
[9:58] lines is expensive and it takes
[10:00] a long time. So we've partnered
[10:04] with an entity calledctC Global
[10:06] to look at reconductoring lines
[10:08] which enables more power to flow
[10:10] through on an expedited timeline
[10:12] we're looking at using Google's
[10:14] own AI capabilities to speed
[10:17] interconnection times to look at
[10:19] weather forecasting that enables
[10:19] more optimal power
[10:22] operations and unit commitments
[10:24] and then we're using demand
[10:26] response that means when there
[10:27] is a situation where the grid is
[10:30] strained we will reduce demand
[10:31] at our data center site to
[10:33] alleviate that constraint and
[10:34] lower wholesale prices for
[10:36] customers that demand
[10:38] response is outlined in our west
[10:40] memphis contract with entergy so
[10:43] we agreed to a period of up to
[10:45] 10 hours for any event and then
[10:46] over 100 hours of the course of
[10:48] the year in which we will reduce
[10:49] our data center demand if called
[10:50] upon
[10:51] by the utility
[10:55] then lastly I want to highlight
[10:57] the energy affordability work
[10:58] that we're doing here in
[11:00] Arkansas alongside the
[11:02] announcement in September for
[11:04] the west memphis datata Center
[11:05] we also announced our west
[11:08] memphisnergy impact fund. That
[11:09] fund commits over 25 million
[11:12] or'm5 million dollars over five
[11:13] years to improve energy
[11:14] affordability for low income
[11:16] customers it is focused at this
[11:18] point on West Memphis and
[11:20] Crittenon County looking at
[11:22] weatherization and
[11:22] preweatherization so there's
[11:23] health and
[11:25] safety repairs that are needed
[11:28] to enable low income customers
[11:29] to qualify for weatherization
[11:29] services.
[11:33] we also announced just a few
[11:34] months ago our commitment to an
[11:36] additional5 million dollars in
[11:38] health and safety improvements
[11:40] weatherization services
[11:40] community solar and energy
[11:43] efficiency upgrades for schools
[11:45] as part of our announcement
[11:47] about the Stee River facility.
[11:50] Steele River is the US's largest
[11:51] solar facility that is currently
[11:52] under construction in the town
[11:54] of Wilson and you can see that
[11:56] I've highlighted some of the
[11:58] partners that are enabling us to
[11:59] carry out these investments ICF
[12:00] who is
[12:03] entergy's implementation partner
[12:05] for energy efficiency services
[12:07] groundswell Crowwley'sridge
[12:08] Development Council and
[12:10] Elevatenergyround swell has been
[12:12] particularly active in this
[12:13] space they've moved I think
[12:15] over40 homes off of their list
[12:17] and are looking at a waitlist of
[12:20] 250 at this point so they are
[12:21] moving as quickly as they can to
[12:23] get through that list by the end
[12:25] of 2026. but I've included this
[12:27] testimonial here and it says
[12:28] after being residents in our
[12:29] home for over30 years it's as if
[12:30] we've
[12:32] moved into our house again for
[12:34] the very first time with all the
[12:36] new windows and attic insulation
[12:37] and these are west memphis
[12:38] residents whose home was
[12:40] recently retrofitted by
[12:42] groundswell and they agreed to
[12:43] talk about their story with
[12:43] Google and with you all.
[12:48] and I've just concluded with
[12:50] some views inside of our actual
[12:52] data centers so these are Google
[12:54] employees who you can see doing
[12:57] electrical repairs HAC repairs
[13:01] some welding so these are the
[13:02] people who are employed at
[13:03] Google's data centers just a
[13:04] small subset
[13:06] with that I'm happy to take
[13:07] questions.
[13:11] thank you
[13:15] M Wilson I had one just quick
[13:16] question you mentioned the
[13:18] advanced conductors for your
[13:20] transmission lines this is where
[13:22] we'll just say the wire I know
[13:22] it's may be some other kind of
[13:26] cable but the wires are being
[13:27] would be retrofitted to
[13:29] something that's more efficient
[13:31] and would either not eliminate
[13:33] but but diminish the amount of
[13:36] line loss over the distance
[13:38] that's it has to travel and my
[13:39] understanding that they
[13:41] essentially apply a coating to
[13:41] the existing wire which
[13:44] allows it more electrons to pass
[13:46] through that wire in any given
[13:48] moment and and for people who
[13:50] aren't aware that I attended a a
[13:51] meeting where this was described
[13:53] it's there's a significant
[13:55] amount of line loss went from
[13:56] where something's generated to
[13:58] where it's final delivered to
[14:00] the the end user and that's
[14:02] efficiency that you know that's
[14:04] that's like adding more capacity
[14:05] if you can get this efficiency
[14:06] so that's without needing to
[14:08] build new infrastructure
[14:11] well we'll go straight to
[14:14] questions uhpresentativeladyman
[14:16] you are recognized I'm over here
[14:18] way over here's up there thank
[14:21] you Mr Chairman. a couple of
[14:24] questions are any of your
[14:26] current data centers
[14:27] self-powered in other words do
[14:29] they have their own power source
[14:32] or are they all grid operated.
[14:33] If you think back to that map
[14:35] that I showed you, there are no
[14:37] locations on that map that have
[14:38] onsite generation that is being
[14:39] used to power the data
[14:42] center that is something that
[14:44] google looks at when we're
[14:44] considering data center
[14:48] development policies have to be
[14:50] in in place in a state in order
[14:52] to enable that solution and so
[14:54] there are I think some locations
[14:56] in Texas where we're looking to
[14:58] construct a new data center and
[15:00] use onsite power for generation
[15:04] in general our our preference
[15:05] is to be grid connected and to
[15:06] work with our utility partners
[15:08] in the states in which we're
[15:09] located in order to bring
[15:12] those generation solutions to
[15:14] the grid and to other ratepayers
[15:16] thank you for that one more Mr
[15:17] chairman if you could go go
[15:18] right ahead sir
[15:21] you know we we heard a lot of
[15:22] things and things in the
[15:24] newspaper. some I think are
[15:26] correct. I think some of them
[15:27] are not correct.
[15:29] one of the things that we
[15:32] read about is the water usage
[15:34] can are you able to answer, I
[15:36] mean can you give us an idea of
[15:38] water usage. I know some of the
[15:40] sites or the data centers
[15:40] recirculate their water
[15:43] can you give us an idea of how
[15:44] much water a
[15:47] average sized data center or
[15:47] typical sized data center would
[15:48] use
[15:50] I can speak to that at a very
[15:52] high level and what I will say
[15:54] is that it's incredibly site
[15:56] specific but also developerc
[15:58] specific. there are some folks
[15:59] out there who are developing
[16:00] data centers who use the same
[16:02] technology in all of their sites
[16:04] google takes a different
[16:05] approach. Our approach is one
[16:08] that is very sitesific. it looks
[16:10] at the availability of the
[16:11] resource in the community, the
[16:12] quality of the resource in the
[16:14] community the existing
[16:16] infrastructure the need for any
[16:17] potential upgrades and then we
[16:18] make those sciing decision
[16:21] s or the the infrastructure
[16:23] decisions around both
[16:26] constraints and opportunities so
[16:28] each of our data centers may use
[16:30] a technology that is unique to
[16:32] that particular site and that is
[16:34] absolutely an area where we will
[16:36] look for community input on the
[16:37] type of solution that they would
[16:38] want to see so would it be
[16:40] possible to put it in an area
[16:40] like northwest Arkansas where
[16:43] there's very little water and
[16:45] is there a technique that you
[16:47] could use to do that? West
[16:47] memphis actually is using a dry
[16:48] cooling
[16:51] technology and that was not the
[16:53] original plan but when faced
[16:54] with certain constraints on the
[16:56] system we had to pivot and then
[16:58] select that dry cooling so yes
[16:59] in areas that are water
[17:01] constrained there is an option
[17:01] for that thank you
[17:07] thank youpresentative ladyman
[17:10] now when you say dry cooling is
[17:11] this you know
[17:14] like an old Vvolkswagen that's
[17:16] air cooled is it like that as
[17:18] opposed to something that has a
[17:19] recirculating liquid
[17:24] is that analogous to that and I
[17:26] will say that there's when
[17:28] you're looking at cooling
[17:30] solutions that useless water
[17:32] there's a tradeoff that comes
[17:33] with that because water is the
[17:35] most efficient way to cool
[17:36] anything that's hot and so when
[17:38] you're using dry cooled
[17:42] solutions you in turn using more
[17:44] energy. so we have to look at
[17:45] both sides of the coin so
[17:48] running that fan costs more
[17:49] energy than running a water pump
[17:49] OK.
[17:52] great uhpresentative beck you're
[17:53] recognized
[17:54] thank you Mr Chair
[17:59] I I had a couple of questions
[18:01] you you were talking about the
[18:03] coding on the wire increasing
[18:05] the efficiency in the land law
[18:07] de decreasing the land loss
[18:08] for the transmission
[18:10] you didn't have a number I'm an
[18:11] engineer you didn't have a
[18:14] number is that like 20% I don't
[18:16] know off the top of my head but
[18:17] I'm happy to get back to you on
[18:19] that after after this
[18:21] discussion. OK so that's the so
[18:22] the next and you might just give
[18:24] it back to the to the to the
[18:25] committee and that distributed
[18:26] out to us
[18:28] committee staff and we'll we'll
[18:30] see that everyone gets the
[18:30] answer thank you the
[18:34] the second question is you were
[18:36] talking about your demand
[18:38] contract that you have and you
[18:40] and I'm I might have heard wrong
[18:43] so you said for you can reduce
[18:45] your demand down to help
[18:48] stabilize the grid for 10 hours
[18:50] for10 hours in a single event
[18:52] and then 100 hours in total over
[18:53] the course of the year so it's
[18:55] 100 hours for the course of the
[18:55] year
[18:56] all right
[19:00] so just in general your other
[19:02] sites have you do you have
[19:04] similar contracts like that with
[19:07] at other sites and how has that
[19:09] played out in other words you
[19:10] know we've never used more
[19:11] than60 hours a year or something
[19:12] like that
[19:15] that's right it is the demand
[19:17] response is a relatively new
[19:18] provision that we're writing
[19:20] into our contract so I believe
[19:23] entergy was the third utility
[19:26] with which we made this type of
[19:27] partnership agreement Indiana
[19:30] Michigan is another and the name
[19:32] of the third is escaping me at
[19:34] the moment but we're looking to
[19:37] do this in in increasing
[19:39] amounts in new utility contracts
[19:41] as we are able there are certain
[19:42] services for data center
[19:43] customers
[19:45] that have less ability to be
[19:48] curtailed than others so you
[19:49] would want your
[19:52] your google products to stay
[19:54] online and in emergency
[19:56] situations you want the
[19:58] emergency response team to still
[20:00] be there so those run through a
[20:02] data center so the ability to
[20:04] curtail is going to vary
[20:05] according to the site and the
[20:06] customers who are being served
[20:08] at that particular site but it
[20:10] is something that our team is
[20:12] actively working on to implement
[20:13] at as many locations as
[20:13] possible.
[20:15] one more if I may
[20:18] just this I'll tell you what
[20:19] I'll just get back into the I'll
[20:20] get back into the go ahead and
[20:22] back and I'll cut you off I
[20:22] think you're talking to
[20:26] so the the question I had was
[20:27] in that
[20:31] looking at distribution lines
[20:34] versus transmission lines and I
[20:36] know in your statement you
[20:36] you I know that you guys are
[20:38] saying that that you're you're
[20:40] paying for all the the equipment
[20:42] to to serve your facility
[20:45] you energy you've worked out a
[20:46] contract with them so my
[20:47] question is this
[20:48] there's distribution
[20:54] cost or distribution assets in
[20:56] infrastructure that that needs
[20:57] to maybe be increased or
[20:58] whatever like that and I'm I'm
[21:00] assuming you're paying for that
[21:01] because that's distribution but
[21:02] my question is on a bigger scale
[21:03] on the transmission
[21:07] for the transmission of of power
[21:09] in and out of the area where
[21:10] you're operating in
[21:14] and and this this work that
[21:17] you've done with the I think
[21:19] it saidctClobal
[21:20] I think it saidctClobal
[21:22] to help the transmission lines
[21:24] reduce the losses on those lines
[21:28] is that adequate enough I guess
[21:30] I'm concerned about transmission
[21:32] restraints you know there's
[21:33] there's there's there's
[21:35] transmission restraints within
[21:37] the distribution lines but
[21:38] there's also transmission
[21:42] restraints on the larger grid so
[21:44] can you fill in the gaps there a
[21:48] little bit for me iss is the
[21:52] is it CtClobalt are they gonna
[21:54] offset any kind of restrictions
[21:55] as far as
[21:58] the transmission side of this
[21:59] goes. I'm going to answer your
[22:00] question in two parts and the
[22:02] first part is related to the
[22:04] transmission infrastructure
[22:06] that's going to be used to serve
[22:08] google's load at West Memphis
[22:09] there was additional
[22:11] infrastructure that was needed
[22:13] at that facility and as part of
[22:14] the special rate contract with
[22:16] entergy there is a provision
[22:18] that google will pay for those
[22:19] upgrades and additional
[22:20] infrastructure that's needed
[22:24] thectClobalartnership is a
[22:25] separate partnership that
[22:28] is looking at reconductoring
[22:30] existing transmission lines and
[22:32] currently the way that that is
[22:34] structured was via an RfP
[22:36] process and so we put it out to
[22:38] all of the utilities and then we
[22:40] got responses from folks who are
[22:42] interested in partnering with
[22:44] Google. they submitted a
[22:45] response and detailed the
[22:46] project and the amount of
[22:48] investment that would be
[22:50] necessary I believe we have a
[22:50] team that is currently going
[22:53] through those responses now to
[22:54] select kind of the first round
[22:55] of winners
[22:58] google is ambitious and we
[23:00] want to reconductor the entire
[23:01] United States we just have to
[23:02] take it you know one chunk at a
[23:04] time. so while we don't have any
[23:06] plans yet for Arkansas, I hope
[23:08] that this will be another way
[23:09] that we can work with entergy to
[23:10] bring benefits to Arkansas
[23:11] ratepayers.
[23:12] thank you
[23:15] thank youpresentative
[23:17] senator Mcee you recognized
[23:25] you Mr Chairman and thank you
[23:28] Miss Wilson for being here
[23:28] you know there's a lot of
[23:30] communities that are concerned
[23:32] with different aspects different
[23:33] things they've seen on social
[23:34] media could you would you be
[23:36] willing to go through what you
[23:38] consider to be some of the most
[23:39] important questions those
[23:42] communities can ask whether it
[23:43] is Google that's developing the
[23:46] data center or whoever it is can
[23:47] you go to some of some of the
[23:48] most important questions you
[23:50] think are important for y'all to
[23:51] answer for those communities
[23:52] that's a great question I'm very
[23:53] glad
[23:55] you asked and I think there has
[23:57] been a lack of understanding in
[23:59] communities about what exactly
[24:01] those questions should be and
[24:04] how they can be asked to data
[24:06] center developers each of the
[24:07] developers approach things
[24:09] differently and so it is very
[24:10] important to have a forum where
[24:12] you can ask the questions and
[24:15] get answers that can enable you
[24:16] to make the best decision for
[24:20] your community I think we are
[24:20] seeing people who are very
[24:22] interested in energy use in
[24:23] water
[24:27] use sound appropriate buffers
[24:30] around facilities impacts on
[24:32] lands and wetlands
[24:36] community benefits what will
[24:38] the community wind up paying for
[24:40] what benefits can they be
[24:42] expected to get in return? how
[24:45] will those benefits flow down to
[24:47] residents and in what form?
[24:49] These are I'm giving you kind of
[24:51] topic areas as opposed to you
[24:53] know very specific questions but
[24:56] I think those are kind of an
[24:58] umbrella of things that
[24:59] communities are interested in
[25:03] and that need to be asked right
[25:04] at the outset of any of these
[25:05] proposals
[25:06] and I appreciate that answer
[25:08] what are some of the most
[25:09] important things states can do
[25:14] number one to ensure that you
[25:16] know the market's open for
[25:17] business and jobs and economic
[25:19] development but also to make
[25:20] sure that the people that we
[25:22] represent are protected from
[25:25] nefarious actors and folks who
[25:26] don't necessarily exercise the
[25:27] best practice
[25:32] think that there are many
[25:34] entities that are interested in
[25:36] this and so to the extent that
[25:38] you can work in partnership that
[25:39] is going to be most helpful so
[25:41] as not to step on each other's
[25:44] toes or avoid you know one
[25:46] entity kind of getting in the
[25:48] way of the other and by that I
[25:51] mean you know entergy for
[25:52] example has worked out specific
[25:54] provisions that are enabling
[25:58] ratepayer protections when data
[25:59] center loads come to town and so
[25:59] communication
[26:03] I think around those principles
[26:04] will be essential if the
[26:07] legislature were to take action
[26:08] at a state level say
[26:10] and there are states that have
[26:12] put in provisions around large
[26:16] load contracting what data
[26:18] centers must agree to I think
[26:20] there are some states who have
[26:22] weighed in on community benefits
[26:24] planning and what those
[26:25] benefits should look like
[26:30] it really comes down to the need
[26:33] I think in each state and
[26:34] every every state is going to be
[26:36] different so your response is
[26:37] not necessarily going to look
[26:40] the same as Texas but you
[26:41] know you want to make sure
[26:42] you're following the principles
[26:45] of ratepayer protection land use
[26:48] protection and then making
[26:49] sure that communities are
[26:50] receiving the services that they
[26:51] need.
[26:55] go ahead if when you leave
[26:57] here today and I I think you're
[26:58] probably going straight to the
[27:00] airport. We appreciate you
[27:01] taking questions but if you had
[27:02] to leave hoping that we came
[27:04] away or the folks that are
[27:06] watching online came away with
[27:06] one thing what's the most
[27:08] important thing that they should
[27:09] know about the industry that
[27:10] you're in and the development
[27:11] that we're seeing
[27:14] think in any
[27:16] any market where folks see that
[27:18] there is money to be made it
[27:20] invites a level of speculation
[27:22] and so you have a range of
[27:24] actors who are looking to
[27:26] develop data centers and it can
[27:30] be hard to differentiate the
[27:31] good actors from the bad actors.
[27:32] Google has demonstrated its
[27:34] commitment to doing data center
[27:36] development in the right way a
[27:38] way that protects Arkansas
[27:40] ratepayers in a way that brings
[27:41] benefits to the
[27:42] communities in which we're
[27:44] scited and so that is ultimately
[27:45] what I would like to leave you
[27:46] with today.
[27:48] thank you chairman
[27:48] thank you
[27:52] p re s ent ative I mean Senator
[27:54] Mcee and and also Miss Wilson
[27:56] for a good question and a great
[27:57] answer
[28:02] along that line I I just wanna
[28:02] say that can you clarify
[28:06] and most people in this room
[28:08] probably know it but generally I
[28:10] don't think people do the
[28:12] initial developer may not be
[28:15] one of the names we've heard
[28:18] like like google or or amazon or
[28:20] someone like that this is what
[28:21] you're speaking of where someone
[28:24] goes in and wants to build a
[28:26] facility or or start a facility
[28:28] that will turn around and sell
[28:29] to you or one of your other the
[28:30] other data companies as my
[28:32] reading that correctly a
[28:34] coworker of mine calls that a
[28:36] man a van and a plan and so that
[28:39] is somewhat facetious but also
[28:42] true in that there are folks
[28:43] out there who are looking to
[28:43] acquire
[28:44] land and yes construct a
[28:46] facility and ultimately sell it
[28:48] to someone but they don't yet
[28:50] know who that someone will be so
[28:52] it's total speculation in that
[28:53] regard ok thank you
[28:56] next representative in it
[28:57] you recognized
[29:01] thank you chairman. Hi, I'm
[29:04] Denise Sennett and the google
[29:06] that you're going to build on
[29:08] the port that's in my district
[29:10] and so I have a couple of
[29:12] questions about that can you
[29:13] talk about the timeline again
[29:16] we haven't yet developed a
[29:18] timeline. The timeline is going
[29:20] to be somewhat lengthy
[29:23] more than a year I can say for
[29:26] certain beyond that I don't know
[29:28] because those plans haven't yet
[29:29] taken shape. as I mentioned
[29:30] in my slides we're currently in
[29:32] our listening phase to figure
[29:34] out what the community would
[29:37] like to see in that space and
[29:38] how google can accommodate those
[29:39] needs
[29:44] ask course go right ahead yes so
[29:46] in the sweet home community who
[29:47] have you spoken with in the
[29:48] community?
[29:52] so my job as an energy market
[29:54] development so I am primarily
[29:56] tasked with our regulatory
[29:58] relationships and working on our
[29:59] our power acquisition with
[30:02] entergy we have a public affairs
[30:03] team we have a community
[30:04] development team and those are
[30:06] the folks who are typically on
[30:08] the ground speaking with
[30:09] community members and getting
[30:10] their viewpoints
[30:16] one more
[30:20] so when you
[30:23] so how does that work after you
[30:26] get everything start building
[30:28] are you going to start acBA or
[30:30] do you start a CBA before you
[30:31] start building the
[30:34] data center? how does that work?
[30:36] Typically it's before we start
[30:37] building we would at least enter
[30:39] into discussions with the
[30:40] relevant folks to determine what
[30:42] those community benefits are
[30:44] going to look like and then
[30:46] it would absolutely be in place
[30:48] by the time the data center is
[30:49] constructed but you know
[30:51] depending on the the length of
[30:54] those discussions you know it
[30:55] could progress alongside the
[30:57] construction timeline and I
[30:59] would just like to be kept
[31:00] apprised of that when you start
[31:01] doing that thank you
[31:06] thank youpresentative Bennett
[31:07] uhpresentative macgruder
[31:12] who represents west memphis you
[31:14] recognize Mcgrew he saidmcgrew
[31:15] there
[31:20] thank you Mr chair for allowing
[31:22] me to ask a question being
[31:24] that I'm not on this committee,
[31:26] I have three questions if
[31:28] that's OK Mr Chair just just
[31:29] shoot him yes sir thank you so
[31:32] much. my first question is
[31:34] well first the statement thank
[31:35] you for the $4 billion
[31:37] investment in Crittenon County
[31:38] being that I am a resident of
[31:40] Critan County. I do have a
[31:42] concern because you said
[31:44] there are areas that you all
[31:46] have started plants or gotten
[31:47] one going and then you had to
[31:47] shut down because
[31:49] it wasn't feasible
[31:53] No I'm sorry and I apologize if
[31:55] I misspoke that was a kind of a
[31:58] rhetorical statement if we
[32:01] were to exit a particular market
[32:02] customers would still be
[32:04] protected based on the
[32:05] provisions that are in our
[32:08] contract Google has never left a
[32:10] data center community Our
[32:10] earliest data centers were
[32:12] constructed in 2007 and those
[32:14] data centers are still at the
[32:16] same level of capacity they were
[32:18] when we constructed them and
[32:18] many of them have actually been
[32:19] expanded
[32:24] my next question is again about
[32:25] Qritan County
[32:28] how many employees do we
[32:29] anticipate that will be
[32:32] from Krittenney County or live
[32:33] inrittenney County at this
[32:34] facility. I don't have that
[32:36] number off the top of my head
[32:38] but we like to hire locally and
[32:40] that is our preference so as
[32:42] many folks from Crittenon County
[32:43] who would like to work for
[32:44] Google, I think we're happy to
[32:45] take them
[32:49] thank you so much and my last
[32:49] question Mr Chair
[32:53] Critan County I heard you
[32:56] speak about the investment of5
[32:57] million dollars a year over five
[32:59] years which is a total of $25
[33:01] million in Critan County
[33:05] are we allowing anybody in
[33:07] Qritan County or they're just
[33:09] focused on one area in Qutney
[33:10] County. It is anyone in
[33:12] Crittenon County it is focused
[33:14] on low income residents and so
[33:16] groundu the the partners that I
[33:18] mentioned Groundswell ICF and
[33:19] Crowley'sridge Development
[33:19] Council have been working
[33:20] together
[33:24] to create ways to spread the
[33:26] word about the program and
[33:28] create intake forms. I think
[33:30] there's actually a website where
[33:32] people can enter their name,
[33:35] their address into into that
[33:38] site and be put on a list for a
[33:39] visit to talk about the
[33:40] potential for these health and
[33:41] safety repairs and
[33:43] weatherization services well if
[33:44] possible Miss Wilson can you
[33:46] share that information with
[33:48] the committee so that we can
[33:49] make sure we pass it on to the
[33:50] residents of Crindon
[33:51] County.
[33:52] thank you so much to
[33:53] you
[33:56] thank youpresentative McGruder
[33:57] uhpresentative Barnett
[33:58] you're recognized
[34:07] Thank you chair
[34:11] Hi Miss Wilson thank you for
[34:13] coming and sharing with us of
[34:16] your presentation. I do have a
[34:17] question
[34:19] really one of clarification. I
[34:20] know that you spoke about the
[34:23] West memphisnergympactund which
[34:26] is approximately $25 million.
[34:28] a few months ago there was an
[34:30] announcement regarding the
[34:32] greater west memphis Energy
[34:34] Affordability Fund which was
[34:37] another one.25 million so are
[34:38] those two separate
[34:44] things and greater west memphis
[34:48] fund is part of that west
[34:50] memphis umgy impact fund and it
[34:53] is a carve out of that 1.25
[34:55] million that is meant to
[34:56] be
[35:00] allocated by members of the
[35:02] community and so we assembled an
[35:04] advisory board of local folks
[35:07] who are taking applications
[35:10] for different energy projects
[35:11] and they're making a decision
[35:14] about how to allocate that $1.25
[35:16] million within the community. OK
[35:17] and as it relates to the
[35:19] composition of that board I know
[35:20] we had a previous email on
[35:22] May2nd where we talked about
[35:26] there being 80% of that board
[35:26] makeup from Crittenon County in
[35:27] west Memphis
[35:30] and then there's 20% that is
[35:32] from Memphis and Shelby County
[35:35] and could you provide
[35:38] explanation as to why that 20%
[35:40] is for Memphis and Shelby
[35:42] County. So there are
[35:43] organizations in Memphis are
[35:45] also invited to apply for
[35:48] funding and so because those
[35:50] organizations could potentially
[35:52] ask to be grant recipients
[35:54] then we thought it wise to
[35:56] include representatives from
[35:57] Memphis as part of the board
[36:00] I have seen the applications
[36:02] and I cannot recall if anyone
[36:04] from any organization in Memphis
[36:06] opted to apply at this time but
[36:09] that is an option for funding
[36:09] if people so chose
[36:14] has been given to
[36:15] allow
[36:19] other counties in Arkansas to
[36:22] apply and primarily because you
[36:24] are developing in west
[36:26] memphis and west memphis
[36:27] school district is actually a
[36:30] dual county school district and
[36:32] so what Saint Francis County for
[36:34] instance with someone
[36:36] communities from that county be
[36:38] able to apply for that
[36:40] particular fund. I think we view
[36:42] this this affordability fund
[36:44] as a starting point and we would
[36:45] love to be able
[36:48] to expand our footprint to
[36:51] include more counties with I
[36:52] mentioned an additional5 million
[36:54] dollars that had come as part of
[36:56] the Steeriver project
[36:59] announcement so because that
[37:00] project is located in
[37:02] Mississippi County a portion of
[37:03] that5 million dollars is going
[37:05] to weatherization in that county
[37:08] and then as another component of
[37:10] that fund we also created a fund
[37:12] for Arkansas schools and so that
[37:14] is intended to serve the
[37:15] rivercre
[37:18] s t school district but also the
[37:19] littlettleRock school district
[37:20] and the pulaski Countypecial
[37:22] school district so we are doing
[37:26] a slow expansion and I just ask
[37:28] for your patience and support
[37:31] as we roll that out. OK and 11
[37:32] last quick question yes sir. So
[37:38] I thank you for sharing earlier
[37:41] a clarification on as it relates
[37:42] to these weatherization grants
[37:45] and that they do include
[37:48] Crittin County residents outside
[37:50] of West Memphis because I was
[37:52] at a meeting where I asked that
[37:54] particular question of a city
[37:55] official and a primarily told me
[37:57] that it was going to benefit
[37:59] those that were in West Memphis.
[38:01] so one thing that I would like
[38:02] to know is it possible to get a
[38:04] percentage of those that have
[38:05] applied through the West memphis
[38:08] Energympact Fund, what
[38:10] percentage of those applicants
[38:13] that will be awarded are from
[38:15] the city of West Memphis and or
[38:18] rural Crittenon County and I ask
[38:20] that because the data center
[38:22] development is pretty close to a
[38:24] rural unincorporated community
[38:26] and I know some of those
[38:28] residents have concerns they
[38:31] also would like to meet with
[38:32] Google so that they can get
[38:33] their answers
[38:36] to their questions answered
[38:38] directly and so I I just kind of
[38:39] wanted to know if you could
[38:40] speak to that any Yes I'm happy
[38:42] to get you those numbers. What I
[38:44] will say in advance of providing
[38:46] them is that the different
[38:47] organizations that we've
[38:49] partnered with are covering
[38:51] different parts of either
[38:52] Crittenon County or West
[38:56] Memphis.roundswell has been very
[38:57] quick to
[39:00] start providing services I'll
[39:02] say as I mentioned they've
[39:04] already done40 houses they have
[39:06] a 250 household waiting list at
[39:08] this point other partners who
[39:10] serve areas outside West Memphis
[39:12] haven't been quite so quick to
[39:14] roll out their services and so
[39:17] again those numbers may look
[39:20] a little skewed at this point
[39:22] but we're expecting that as soon
[39:24] as the funds have been deployed
[39:25] to their fullest extent that
[39:26] will bring those other numbers
[39:27] up to the same standard
[39:30] if you could get us that
[39:32] percentage breakdown I would
[39:34] appreciate that please provide
[39:36] that to the committee M Wilson
[39:38] and we'll see a point of contact
[39:39] for that we'll see
[39:40] thatpresentative barnett gets it
[39:42] as long and I'm sure it'll spark
[39:43] some interest with others if
[39:44] you'll just share that
[39:46] information with the committee
[39:47] and I understand this is this is
[39:50] an ongoing fund this is not a
[39:52] snapshot this will be a a long
[39:53] term thing but if you could give
[39:55] us a a snapshot of maybe where
[39:56] we are this month and I'm
[39:57] sure that would please the
[39:58] people
[40:00] over in that area to know that
[40:01] yes definitely thank you
[40:02] Representative Barnett
[40:03] Representative Joey Carr you
[40:04] recognized
[40:08] thank you Mr chairir just a
[40:10] quick question you said that
[40:12] it was a 20 year contract
[40:14] with entergy yes what's the
[40:16] expected longevity on the on the
[40:19] center in at the end of whatever
[40:20] its life is what what happens
[40:21] then
[40:24] I don't know because it's never
[40:25] we've never come to an end of
[40:28] life for a data center yet in
[40:29] addition to the twentyy year
[40:31] contract period if we don't say
[40:32] that we want to terminate that
[40:34] contract it will automatically
[40:36] renew for an additional term
[40:38] you know until Google says we're
[40:40] ready for this to end and we've
[40:43] not done that in a community yet
[40:45] so I don't have any concrete
[40:47] examples to point to. I would
[40:50] expect that like anything
[40:50] that's decommissioned we would
[40:51] seek to do that
[40:54] in a responsible way that is
[40:55] responsive to the needs of the
[40:55] community in which we're in.
[40:58] thank you thank you Mr chairir.
[41:00] thank you sir
[41:03] p re s ent ative m c g re w
[41:03] you're recognized
[41:04] thank you miss chairman
[41:08] and thank you for being here and
[41:10] sharing with us today on the
[41:12] with the demand of of power
[41:14] going up in Arkansas pretty
[41:16] drastically now is there any
[41:17] ability I know that your load is
[41:20] pretty standard and stays on if
[41:23] if in the ability that some load
[41:24] needs to be shed because of a
[41:27] demand that hits is their
[41:29] ability within Google to shed
[41:29] some of that load
[41:32] and that is a part of those
[41:34] demand response provisions that
[41:35] we have with entergy that I
[41:37] mentioned at west memphis so in
[41:40] the event of a grid stress
[41:42] period Google will agree if
[41:44] called upon to reduce our load
[41:46] for a certain number of hours
[41:48] for a certain number of events
[41:50] per year. We are also looking at
[41:52] potentially in the future
[41:54] implementing distributed
[41:56] solutions so that could be
[41:58] additional energy efficiency. it
[41:59] could be a battery storage
[42:02] residential households and so
[42:04] there are a number of ways that
[42:07] one can either reduce demand or
[42:09] add capacity to alleviate that
[42:10] grid stress and we're looking at
[42:11] all of the options thank you
[42:16] thank you Representative Mcgreg
[42:18] Representative Torriess you
[42:19] recognize yes thank you Mr
[42:21] Chair. Just one quick clarifying
[42:23] question you had mentioned
[42:25] infrastructure and who pays for
[42:26] it and I think you said
[42:29] generation and transmission is a
[42:31] part of that what about
[42:32] substations or distribution
[42:36] would lump that into the
[42:37] transmission infrastructure
[42:40] component and so for the
[42:41] substation that was needed at
[42:42] west memphis google that was
[42:44] included in the payment that
[42:46] Google made for the transit
[42:48] transmission component
[42:49] thank you so much youg thank you
[42:54] with with no well I think
[42:56] you did get back in the queue
[42:57] Representative beck you're
[42:57] recognized
[43:01] and he's an engineer he didn't
[43:04] get pickup I am not but I wish I
[43:05] was thank you and
[43:07] and please don't take these
[43:08] questions as a negative because
[43:11] I I do believe you know the data
[43:13] centers I I think we support
[43:15] them and I do I do support them
[43:18] but I am concerned about this
[43:20] demand agreement and I'm really
[43:23] the the 100 hours a year you
[43:25] know we had winter storm Yuri
[43:26] that would have exceeded that
[43:30] time period and that would have
[43:31] been a you know and I'm just
[43:32] saying that would have been a
[43:33] time when we needed power
[43:35] and
[43:38] google's own contract would have
[43:39] said ok we we we did our
[43:42] four days and a few hours and
[43:43] we're back
[43:48] I I'm just concerned about the
[43:50] length of that other than that I
[43:52] sounds like you guys are doing a
[43:54] dynamite job at making sure
[43:55] everything's all right but but
[43:57] we've just seen that here and
[43:59] we just don't want to and by the
[44:00] way I got the information
[44:01] googleling it I saw
[44:04] so thank you very much for
[44:06] coming and talking with us but I
[44:09] do have a concern about that I
[44:10] think there are a number of ways
[44:13] to address reliability and in
[44:15] the in light of winter storm
[44:18] Yuri the utilities are exploring
[44:20] all of those avenues so
[44:23] adding capacity hardening the
[44:26] grid adding capacity at
[44:28] specific sites is helpfulman
[44:30] response not just from Google
[44:31] but from other large industrial
[44:31] customers is
[44:34] going to be essential and so
[44:37] in a an event of a winter
[44:39] stormuri you really need to call
[44:42] on all of those solutions to be
[44:43] able to ride through that event
[44:46] they are few but they can be
[44:50] catastrophic if we don't respond
[44:51] to them in the right way and
[44:53] so I think entergy is like its
[44:55] other utility partners looking
[44:57] to explore all of those avenues
[44:58] connecting with its neighboring
[45:01] utilities to be able to share
[45:01] power
[45:04] when an event like that hits the
[45:06] grid to avoid some of those
[45:06] impacts that we've seen
[45:08] historically from those winter
[45:09] storm events
[45:12] thank you for answering that
[45:13] question I
[45:16] I appreciate Representative
[45:18] Beck is he's one of our more
[45:20] technically oriented members and
[45:21] his former co-chair so you've
[45:22] got a lot of tools in the
[45:24] toolbox he's got he's got all
[45:26] that M Wilson any final
[45:27] thoughts
[45:30] just that Senator Mcee was right
[45:32] and that I do have to head to
[45:34] the airport shortly after this
[45:35] but I'm happy to respond to
[45:36] additional questions if there
[45:38] are any and we've noted the
[45:40] questions that were asked today
[45:41] that require a response to the
[45:42] committee and I'm happy to
[45:44] provide those as quickly as I
[45:46] can. thank you you were very
[45:48] informative witness and we
[45:50] may very well be taking you up
[45:51] on additional information would
[45:52] love to continue the
[45:53] conversation and thank you so
[45:54] much for having me today you
[46:00] next we'll move to item C2
[46:03] west memphis we have
[46:04] mayyor McClendon was not able to
[46:08] be here today Mr Bobby Atkins
[46:09] who's a general manager of West
[46:12] Memphis Utilities and Mr Eric
[46:14] forrester who's superintendent
[46:14] of West Memphis School District
[46:16] if y'all both come to the table
[46:17] please
[46:20] and Erio get you all set up
[46:21] and
[46:24] the same same
[46:29] routine just you will identify
[46:30] yourselves the record and then I
[46:31] will recognize you one at a time
[46:48] Thank you Mr Chairman for the
[46:49] opportunity to be here please
[46:50] identify yourself for the record
[46:52] so my name's Eric Foister. I'm
[46:53] the superintendent of schools of
[46:54] West Memphis and
[46:58] Mr Atkins please do the same
[47:02] yes good afternoon my name is
[47:03] Bob atkins. I'm the general
[47:04] manager of West memphis
[47:06] Utilities. thank you Now your
[47:08] first on the list Mroster so
[47:10] we'll just let you go first so
[47:12] I'm here because I'm in the
[47:15] kid business and my job is to
[47:18] ensure the education of our
[47:20] of our youth and as we know
[47:21] we're at the forefront of
[47:21] education with AI
[47:26] and so I have to figure out ways
[47:28] to not only educate students but
[47:30] educate our staff on what that
[47:31] looks like
[47:34] and so when I first came to west
[47:36] memphis in December of 24 I had
[47:37] no idea Google was coming
[47:41] had no idea so I'm gonna talk
[47:42] about the kid business I'm gonna
[47:43] talk about the people business
[47:44] because that's what my business
[47:46] is so so I'm gonna tell a story
[47:47] so the day after the ribbon
[47:48] cutting
[47:51] and she she alluded there's
[47:52] different groups to google they
[47:54] came and she sat across from the
[47:56] table from me and she looks at
[47:57] me and she goes OK what's on
[47:57] your wish list?
[48:00] and I had no idea what I mean I
[48:01] mean how many people does that
[48:03] to you right as a superintendent
[48:05] of schools so and so I didn't
[48:06] have really much time to think
[48:07] but I already kind of had a
[48:10] thought that I wanted a pathway
[48:11] for our students to go right
[48:12] into the workforce at west
[48:14] memphis we we have kids that's
[48:16] almost70% of our kids do not go
[48:18] to a two or four year college
[48:19] they go right in the workforce.
[48:20] so it's my job to educate on
[48:22] what they could do but it's also
[48:23] provide opportunities so I said
[48:24] I wanted a four year pathway
[48:26] that when they graduate from
[48:27] high school they could go work
[48:27] for you in the AI and cy
[48:29] ber se cur ity well that's come
[48:32] to fruition so this fall we have
[48:33] our first cohort of kids and
[48:34] it's it's life changing for our
[48:38] kids the opportunity
[48:40] I'm not in the data centers I
[48:41] couldn't even tell you who else
[48:42] has got a data center so what I
[48:44] could tell you who I want to
[48:44] partner with to learn more about
[48:46] AI and that's Google and that's
[48:49] why I'm here and to to share the
[48:52] experiences that we've had and
[48:53] not only has it been life
[48:54] changing for some of our kids
[48:55] and with the profession I'm
[48:56] gonna show a quick video to to
[48:57] illust
[48:59] rate that but it is opened up
[49:01] doors in our community that I
[49:02] never thought would have been
[49:04] possible and I live inriney
[49:04] County have lived inritney
[49:05] County for five years.
[49:07] so
[49:10] we now have communications with
[49:12] our college about hey what are
[49:14] some other companies are coming
[49:15] what what kind of pathways can
[49:17] we build? she showed the graphic
[49:20] about the jobs we need HVvac we
[49:22] need construction that's my job
[49:23] to now provide that it's opened
[49:24] up it's created the demand for
[49:26] us to really focus in on
[49:28] providing those opportunities
[49:30] for our kids and that's my job
[49:31] and that's that's what I'm
[49:32] passionate about I'm very
[49:35] proactive I I think outside
[49:35] the box and so does Goo
[49:39] g le and so the next thing that
[49:41] we did we did a summer
[49:42] program you'll see here quickly
[49:46] to expose our kindergarten to
[49:48] fifth grade with robotics with
[49:51] coding and this is not my world
[49:53] so I grew up I remember I was
[49:55] still teaching when Google came
[49:57] out right and everybody was
[49:59] fearful of google then, let
[50:00] alone what it is now with the AI
[50:02] tools that we're all most of us
[50:04] in here use it we either
[50:06] knowingly use it or use it for a
[50:09] purpose so I wanna get ahead
[50:10] of that we want to be at the
[50:11] forefront west memphis schools
[50:12] our community we want to be at
[50:13] the forefront of this
[50:15] and the only way I could do this
[50:16] is what the partnership of
[50:18] Google and quite frankly this
[50:20] has been a thought partner so
[50:22] I'd really like the opportunity
[50:24] Mr Chairman to show a quick
[50:26] video please please go ahead
[50:28] with it as you know we started a
[50:29] little late so I I want you to
[50:29] be able to get that in so go
[50:30] right ahead
[50:44] Technology is not decreasing in
[50:46] our lives it's it's increasing
[50:47] in our lives so how do we make
[50:49] sure that young people see
[50:50] themselves as leaders even in
[50:52] this space such that they can
[50:55] also happen to the technology
[50:55] instead of the technology
[50:56] happening to them
[51:02] we're at jackson Wonder
[51:03] Elementary School in West
[51:06] Memphis Arkansas this is a a
[51:07] creative innovative
[51:08] collaboration between a
[51:10] community organization like
[51:12] Coderu as well as a worldclas
[51:14] technology or company like
[51:16] Google as well as an
[51:17] innovative school district it's
[51:19] been a great partnership it
[51:20] started with Google one of the
[51:21] first things that came to me
[51:22] literally after the ribbon
[51:24] cutting is what's your wish list
[51:26] you're my number one wish list
[51:28] was for an opportunity for our
[51:29] kids to have a pathway through
[51:29] high school when
[51:32] they get done with high school
[51:33] they go right into the workforce
[51:34] with skills that can maybe work
[51:37] for google so to be able to code
[51:40] in fifth grade it's actually I
[51:41] actually really like it and I
[51:42] loveonor because you get to
[51:44] learn about new things. I love
[51:45] to see the light bulb go off and
[51:46] each and every one of them as
[51:48] they realize that the things
[51:49] that they're learning in terms
[51:51] of being tech producers none of
[51:52] that is rocket science. I hope
[51:55] that we kind of set the standard
[51:56] for how to embrace this, how to
[51:58] embrace the AI world I want
[51:59] other kids to know that
[52:02] learning about new things is
[52:04] actually good for y'all for your
[52:06] brain so you can know about them
[52:07] when you get to higher grades. I
[52:08] want students to come back to
[52:10] talk to our current students and
[52:12] tell them look this opened up my
[52:14] life to do this. Ultimately it's
[52:16] them deciding that this is
[52:16] something that they can do then
[52:18] believing that there's something
[52:20] that they can do and they need
[52:22] the guidance and support of
[52:23] those who believe in them.
[52:38] that's just a snapshot if you I
[52:40] invite anybody to come to our
[52:40] school district, I'll take you
[52:42] into a classroom or take you to
[52:44] a student that google is
[52:46] affected so either directly or
[52:49] indirectly so I understand
[52:50] the let me phrase it I don't
[52:52] understand all the politics
[52:53] that's not my world I don't want
[52:54] it to be my world. My world is
[52:57] is education but I know in my
[53:00] world I have600 employees for
[53:02] over4,000 students it's
[53:03] important for me to make sure I
[53:04] have all the information before
[53:05] I make judgment and before
[53:08] I make decisions and I think in
[53:10] today's world we sometimes jump
[53:12] at information that we don't
[53:14] really get all of it and I think
[53:15] we've all experienced that as of
[53:17] late and I was also have a
[53:18] saying that Facebook is not real
[53:21] to me other than an information
[53:23] tool anything else that's it I
[53:26] rely on face to face. I rely on
[53:28] relationships and and there's
[53:30] there's the google has done that
[53:31] they've they've proven they're
[53:33] not just a big brand they have
[53:34] proven that they're truly
[53:35] partners in this and I can
[53:38] I could sit here for hours on
[53:39] end but at this point I want
[53:40] to answer some questions that
[53:41] anybody might have OK.
[53:44] Mr Forrere I'll start out by
[53:46] saying thank you for what you're
[53:48] doing and and being proactive
[53:48] especially with your students
[53:50] and their you know just a few
[53:52] years ago these kids were born
[53:54] and now they're gonna be moving
[53:56] into a workforce that that
[53:57] you're helping prepare them for
[54:00] I hope you would be willing to
[54:02] maybe mentor some of your
[54:03] colleagues around the state that
[54:06] may be soon facing the same
[54:08] challenges that that you've been
[54:09] dealing with both in the good
[54:10] and the bad side so I hope that
[54:11] we can work out
[54:14] some manner in which you can
[54:16] mentor them and and tell them to
[54:18] what to watch out for and what
[54:20] things to take advantage of well
[54:22] I'm not sure mentor is the right
[54:23] word but work with because
[54:24] I'm sure I can get some ideas
[54:26] from them more so than us but I
[54:28] can tell us I can be I would be
[54:29] willing to do that and already
[54:30] have I've already had some
[54:32] superintendents reach out to
[54:33] say hey this is coming down the
[54:34] pipe or possibly what can you
[54:36] tell me so I'm all about it we
[54:38] we're wide open in our city wide
[54:39] open in our schools and I I
[54:40] really encourage people to come
[54:41] well thank you
[54:46] questions are from for tell
[54:46] you what I'm gonna go ahead and
[54:50] and get Mr Adkins to speak
[54:52] first and those of you if you
[54:53] want to get in the queue that's
[54:54] fine but I'm gonna let him speak
[54:56] first and then we'll take
[54:57] questions that might go to
[54:57] either or both
[54:59] you're recognized Mr. Atdkins
[55:00] thank you Mr Chairman
[55:04] so I think I'm gonna start
[55:06] and I'm gonna talk about so in
[55:07] west Memphis we actually had the
[55:08] luxury that we started with
[55:10] another data center before the
[55:11] google data
[55:14] that really enabled us to learn
[55:16] a lot and as Miss Wilson said I
[55:19] can I can reiterate emphatically
[55:20] that not all data center
[55:24] developers or hyperscalers are
[55:26] the same so from the very
[55:29] beginning Google their desire
[55:32] from from all interactions that
[55:33] we had with them at the city
[55:34] level before we ever signed any
[55:37] MOUs or CDAs their desire was
[55:40] how can they be an active part
[55:42] of the community right so they
[55:43] from the very beginning you'll
[55:43] you
[55:45] ' ll hear or you hear on social
[55:46] media you hear a lot of talk
[55:47] about
[55:50] that they move into
[55:51] disadvantaged or impoverished
[55:54] communities and west memphis
[55:56] tends to fit that bill but from
[55:58] the very beginning they had
[55:59] nothing but a desire to improve
[56:00] our community and to invest in
[56:01] our community
[56:04] so we started like I said we
[56:05] started with another developer
[56:06] luckily that developer
[56:10] moved away and and the google
[56:11] facility came in and they
[56:11] started talking to us
[56:14] and we started working through
[56:16] some of the agreements from a
[56:17] from a municipal level first
[56:20] I'm actually the the general man
[56:21] of the utility but I've been
[56:22] involved in that process from
[56:24] the very beginning and I'll talk
[56:25] a little bit about utilities at
[56:25] the end
[56:25] but
[56:28] as we were working through the
[56:30] process we were very
[56:32] concerned and very
[56:35] diligent about making sure that
[56:37] it was a a good deal for the
[56:38] city and that the city was going
[56:40] to get a benefit from having
[56:42] them locate there they were open
[56:44] to every one of those
[56:46] conversations when we started
[56:46] talking about community
[56:48] development agreements they were
[56:50] open to that conversation we
[56:52] were able to work through that
[56:54] they're making once they have
[56:55] occupancy they will make it
[56:57] sizable contribution to the city
[56:57] annually
[57:01] and that is really
[57:02] transformational for us at a
[57:03] municipal government
[57:07] So as we work through all those
[57:08] things we had a memorandum of
[57:10] understanding I I will say this
[57:12] as a side note the one thing so
[57:13] we had an NDA with Google and
[57:16] for future reference if you ever
[57:18] have to pass anything like that
[57:20] at city council make sure that
[57:22] you get a bucky's MOu approved
[57:24] at the same time as the google
[57:26] MU because nobody asked us a
[57:28] single word about Google
[57:29] everybody cared about bucky's
[57:34] but it was it was a it was a
[57:35] good experience and they had a
[57:36] desire from the very beginning
[57:38] and they've maintained that
[57:39] desire through the whole process
[57:40] we started talking to them and
[57:43] april of 24 and they've
[57:44] maintained that position all
[57:45] along
[57:46] so they really there's two
[57:48] components that they operate
[57:50] within so there's a corporate
[57:52] level that we work with and then
[57:54] there's a project level that we
[57:56] work with the corporate level
[57:58] they focus mainly on benefits
[58:00] to community like the
[58:04] uhgyfoability fund that we
[58:05] spoke about that Miss Wilson
[58:07] spoke about incidentally both
[58:08] superintendentfoister and myself
[58:09] are
[58:11] members of that council that
[58:11] advisory council
[58:14] one of the things that I will
[58:16] say that they did a good thing
[58:18] about with that is the the
[58:20] entities that they used
[58:22] groundswell the utility had West
[58:23] memphis utilities had been
[58:24] working with groundswell there
[58:26] and established organization and
[58:28] that's what they do and so they
[58:30] partner with them Crawley's
[58:32] ridge they manage the light heap
[58:34] funds and for us and so they
[58:36] they already had a pipeline for
[58:38] these individuals and that
[58:39] enabled them to really kind of
[58:40] get in there and start working
[58:41] on that
[58:44] when we start talking about
[58:46] energy affordability and
[58:46] weatherization and winterization
[58:48] on these homes these are
[58:50] families that oftentimes have to
[58:52] make a decision between do I pay
[58:54] my utility bills so that we're
[58:55] not in the dark and we have heat
[58:57] or do I buy food this week and
[58:59] so this is really transformative
[59:00] for some of these families in
[59:02] these communities and like Miss
[59:04] Wilson said they've already
[59:06] done40 homes and they're slated
[59:08] to do another almost 200 by the
[59:10] end of the year so it is making
[59:11] a real difference for the
[59:11] community
[59:14] we're also talking to them about
[59:15] at the corporate level about
[59:15] investing in
[59:19] other parts of the community so
[59:20] they're talking to us about
[59:22] public safety they're talking to
[59:24] us about public infrastructure
[59:25] they're talking to us about
[59:27] quality of life issues and
[59:28] they're willing to help and just
[59:30] like superintendent oyster said
[59:32] I would reiterate that their
[59:33] desires to be a community
[59:35] partner from the very beginning
[59:38] Google's approach it has been
[59:38] that they're going to be in west
[59:41] memphis long term and they have
[59:42] approached every interaction
[59:44] that we've had with them that
[59:44] way from a municipal government
[59:50] We meet with them weekly and
[59:51] the weekly there's both the
[59:53] corporate and the project side
[59:55] on on the call and we're able to
[59:57] work through issues and we and
[59:59] we talk about things that are
[1:00:00] impacting the city and how
[1:00:01] they're how they're
[1:00:01] influencing the city
[1:00:08] as we as we to talk about the
[1:00:09] project level so the project
[1:00:10] level those are the boots on the
[1:00:12] grounds folk and right now at
[1:00:14] the west memphis site there's
[1:00:17] about 800 contractors and
[1:00:18] associated folks working on the
[1:00:19] site
[1:00:22] they have different projects
[1:00:24] different initiatives and
[1:00:25] they're and a and their focus
[1:00:26] outside of the development is
[1:00:27] how can they impact the
[1:00:29] community so they've already
[1:00:30] gone in in the city did not ask
[1:00:32] them to do this this is their
[1:00:34] corporate culture and they go in
[1:00:35] and they do this so the city has
[1:00:38] they they've gone into some of
[1:00:39] our municipal parks they're city
[1:00:41] owned parks and they've they've
[1:00:43] upgraded the parks so they've
[1:00:44] taken some of the playground
[1:00:46] equipment they're starting in
[1:00:47] the low income neighborhoods
[1:00:49] there and they're upgrading the
[1:00:50] playground equipment improving
[1:00:52] the fencing and cleaning the
[1:00:53] park up and they're doing all
[1:00:53] that on their own
[1:00:55] there's been instances where
[1:00:56] there's been
[1:01:00] roads and and streets that are
[1:01:01] close to the development the
[1:01:03] damage was not caused by them
[1:01:04] but they just went ahead and
[1:01:05] called and these are the project
[1:01:07] folks and said hey we have folks
[1:01:09] in here and and we'd like to be
[1:01:10] able to help we'd like to come
[1:01:12] over and and and take care of
[1:01:14] this problem that you have so
[1:01:15] that's huge for us because that
[1:01:16] enables the city of limited
[1:01:18] resources to be able to use
[1:01:19] those resources in other places
[1:01:22] I'm gonna interrupt you if I
[1:01:24] could Mr. Atdkins thank you
[1:01:26] for all that I'm we're as you
[1:01:26] know we started a little late
[1:01:28] I'm gonna try to move this along
[1:01:30] and you're making it very clear
[1:01:32] that at this point in time
[1:01:33] Google's been a pretty good
[1:01:34] corporate citizen for a new
[1:01:36] citizen in your community
[1:01:38] however I did have a question I
[1:01:40] wanted to ask you about you
[1:01:42] as the utilities general
[1:01:44] manager are involved with the
[1:01:46] infrastructure although y'all
[1:01:47] are a municipal power
[1:01:52] company but you're you will not
[1:01:55] be directly selling to the
[1:01:56] google that will be done by
[1:01:58] entergy is that correct that's
[1:02:00] not correct tell me how that
[1:02:00] will work so
[1:02:04] as the chairman pointed out
[1:02:06] we are a municipal utility so we
[1:02:08] are actually an agency of the
[1:02:10] city and we are actually
[1:02:13] serving the water service and
[1:02:14] wastewater service to the site
[1:02:15] and we're also serving
[1:02:16] distribution voltage for about
[1:02:17] 25 megawatts of distribution to
[1:02:18] the site.
[1:02:22] that that is used for the
[1:02:24] construction temporary and then
[1:02:26] they'll be 20 megawatts of
[1:02:26] permanent power that will stay
[1:02:28] at the site that the city is
[1:02:30] providing to the site now now
[1:02:33] you heard M Wilson
[1:02:36] mentioned that this was a I
[1:02:38] think she s she used a different
[1:02:40] word but the air cooled site
[1:02:42] but you will obviously they use
[1:02:43] water I mean it's a great big
[1:02:45] building it's gonna so you you
[1:02:46] are the water provi your agcency
[1:02:48] is the water provider for the
[1:02:49] project OK.
[1:02:52] so is this for the first three
[1:02:52] buildings the first3 buildings
[1:02:54] will be air cooled there's gonna
[1:02:56] be a total of5. we don't know
[1:02:57] where buildings4 and5 were
[1:02:58] originalinally we talked to them
[1:03:00] about water cooled we had
[1:03:02] conducted studies to make sure
[1:03:03] that we had appropriate water
[1:03:04] out of the aquifer that we had
[1:03:06] the capacity to be able to serve
[1:03:09] them and so right now the
[1:03:10] usage that they have
[1:03:11] pardon me
[1:03:14] think about it in terms of
[1:03:16] like a large distribution center
[1:03:18] so in west memphis we have the
[1:03:20] Bosch distribution center the
[1:03:22] water usage is roughly about the
[1:03:24] same and the sewer usage is
[1:03:25] about the same so it's very
[1:03:27] minimal water usage. the
[1:03:28] conversations that we did have
[1:03:30] with them were about using
[1:03:32] recycled water and that's still
[1:03:34] we're still having those
[1:03:35] conversations with them but
[1:03:38] there's no negative impact on
[1:03:39] the water usage for the
[1:03:40] community and we are providing
[1:03:41] that thank you
[1:03:44] we have a question from
[1:03:46] Representativeladyman who who is
[1:03:47] that forpresentative lady Well
[1:03:48] maybe both of y'all then go
[1:03:51] go right ahead maybe both y'all
[1:03:53] can respond to this this is a
[1:03:54] really big project and I know
[1:03:56] y'all been working on this a
[1:03:58] long time. you had a long
[1:04:00] history so you're as educated
[1:04:02] as any city in Arkansas I would
[1:04:05] think. so my question is
[1:04:09] big project talking to a big
[1:04:11] company so what was your biggest
[1:04:14] challenge to overcome to get
[1:04:16] this project off the ground.
[1:04:18] what was the most difficult
[1:04:19] hurdle
[1:04:22] this may be more for you
[1:04:23] Mr Atkins.
[1:04:28] probably the biggest thing was
[1:04:32] was making sure that when we
[1:04:33] look at things we want to make
[1:04:34] sure that there was no negative
[1:04:35] impact for our citizens
[1:04:38] from a utility standpoint
[1:04:40] that there was no negative
[1:04:41] impact on water or electric
[1:04:44] consumption. we just had an
[1:04:45] upgrade on our treatment plant
[1:04:46] and we wanted to make sure that
[1:04:48] there was not a negative impact
[1:04:50] on the rest of the residents on
[1:04:52] that treatment impact and that
[1:04:54] there was no negative impact for
[1:04:56] any of our residents or
[1:04:57] ratepayers in terms of utility
[1:04:59] bills or taxes or anything like
[1:04:59] that
[1:05:04] in all actuality it it's it's
[1:05:05] actually having the opposite
[1:05:06] effect because we're spreading
[1:05:08] our fixed costs over our our
[1:05:12] larger customer base and so75%
[1:05:13] of our utility bills are fixed
[1:05:16] costs right? and so Google is
[1:05:18] is paying a large percentage of
[1:05:19] those and so it actually has a
[1:05:19] stabilizing effect on our rates
[1:05:23] so those were all very important
[1:05:26] when we were started to work
[1:05:27] through this but then we also
[1:05:28] wanted to look at things like
[1:05:30] how is it going to impact public
[1:05:31] safety? We don't have a data
[1:05:34] center in west memphis how are
[1:05:34] our fire personnel gonna be
[1:05:38] incident there do they have the
[1:05:39] appropriate training
[1:05:41] when we brought those things up
[1:05:42] I I can tell you the google
[1:05:44] folks they were like we we will
[1:05:45] send you to any of our other
[1:05:46] data centers and we will help
[1:05:47] you to get the appropriate
[1:05:50] you can do that so those were
[1:05:53] and then and then the
[1:05:54] infrastructure around the city
[1:05:56] we actually built a new road
[1:05:58] into the facility it had been in
[1:06:00] the plans for a long time and
[1:06:02] this was the catalyst to help us
[1:06:03] get that done so it's a bypass
[1:06:04] for our main Broadway
[1:06:06] thoroughfare that goes through
[1:06:08] town but bro it's those were all
[1:06:10] things that were really
[1:06:10] important to us as we were
[1:06:12] negotiating with them Mroster, I
[1:06:13] might ask you
[1:06:16] you know the kids you showed
[1:06:18] that they're they're accepting
[1:06:20] that and they're learning but
[1:06:22] what about the adults I mean the
[1:06:24] the teachers and the parents
[1:06:26] what was their attitude? I mean
[1:06:28] did you get any negative
[1:06:30] pushback from any l living next
[1:06:32] to it or whatever or were they
[1:06:33] all in on what it was gonna do
[1:06:35] for your school so full
[1:06:36] disclosure I I drive by the
[1:06:37] facility every day coming in to
[1:06:38] work
[1:06:39] and
[1:06:42] quite frankly I didn't know it
[1:06:44] was actually comingti I actually
[1:06:45] got there so I didn't hear a
[1:06:46] whole lot of negative things at
[1:06:48] all and you know kids are kids
[1:06:50] you know if it's not a video
[1:06:50] gameme or right in front of on
[1:06:52] social media they they're
[1:06:53] they're not they're not privy to
[1:06:54] all the things but as far as
[1:06:56] parents and community teachers,
[1:06:59] I mean this has been embraced
[1:07:01] as a whole in our community and
[1:07:01] in our school system as well
[1:07:03] thank you
[1:07:06] if I could just tack onto that
[1:07:08] we did a lot of work upfront
[1:07:10] talking about how it wasn't
[1:07:10] going to have any of those
[1:07:14] negative benefits we didn't name
[1:07:15] Google but we talked about the
[1:07:16] the positive benefits that a
[1:07:17] large development would have for
[1:07:18] our community and how there
[1:07:22] would not be any infrastructure
[1:07:23] issues or problems that we
[1:07:24] weren't going to use water up or
[1:07:26] use all the electric or make
[1:07:27] rates go up and so we did a lot
[1:07:29] of work up front to the
[1:07:30] community with the community
[1:07:32] through town halls and kind of
[1:07:33] grassroots messaging
[1:07:36] to kind of take to talk about
[1:07:38] all those things in advance of
[1:07:39] the announcement and we've
[1:07:39] realized a lot of success with
[1:07:40] that
[1:07:45] Thank you before we go any
[1:07:47] further I just want to tell
[1:07:48] everybody that I'm gonna be a
[1:07:50] little bit shorter with my time
[1:07:52] I'm gonna allow simply
[1:07:54] because we are gonna try to get
[1:07:55] out of here before dark th30
[1:07:59] and it is a little warm today so
[1:08:00] I know y'all can't wait to get
[1:08:02] back out in the heat but
[1:08:04] uhpresentative Mcgruder you're
[1:08:05] recognized
[1:08:08] thank you chair just have one
[1:08:12] question or a statement
[1:08:12] when you both agree that you
[1:08:14] have two of the best state
[1:08:15] representatives in the state of
[1:08:16] Arkansas.
[1:08:20] that that question's out of
[1:08:21] order
[1:08:26] but I'll let y'all answer it.
[1:08:27] Was that a rhetorical question?
[1:08:30] so I
[1:08:33] I can I can honestly s share
[1:08:34] that I try to keep them in loop
[1:08:36] with everything we do and what's
[1:08:38] good for our community is good
[1:08:40] for schools and what's good for
[1:08:41] our schools is good for the
[1:08:43] community and and so we we I
[1:08:45] can't I mean jokingly I think
[1:08:47] you know just by him making that
[1:08:48] statement you know where we're
[1:08:49] at with our relationship and I
[1:08:50] respect them both communicate
[1:08:53] with them both they have been
[1:08:54] extremely helpful to me
[1:08:56] personally as well as to the
[1:08:57] school whether it is a
[1:09:01] superintendent or a a utility
[1:09:03] manager I think everybody in
[1:09:05] this room on this side of the
[1:09:07] table agrees that it's great to
[1:09:08] have those communications a good
[1:09:10] relationship so thank you and
[1:09:12] and I will not rule your
[1:09:13] question out of order
[1:09:15] RepresentativemcGregor. I have
[1:09:17] one more in the queue and
[1:09:19] that'spresentative Brooks you're
[1:09:21] recognized thank you Mr Chair. I
[1:09:22] appreciate the latitude since
[1:09:23] I'm not on this committee but
[1:09:24] obviously given the last
[1:09:25] question there's a broad
[1:09:27] latitude for to say things on
[1:09:27] this committee and I
[1:09:29] appreciate it thank you
[1:09:30] gentlemen for being here and and
[1:09:32] the information that you're
[1:09:33] providing and Mr. Ffoister this
[1:09:36] question is for you. relative
[1:09:38] to funding for the school
[1:09:39] district. Obviously we know that
[1:09:40] we're funded based on the
[1:09:42] uniform rate of taxation,
[1:09:44] property taxes. Has there been
[1:09:46] any discussions or projections
[1:09:48] made about how that would impact
[1:09:50] you. I saw a recent story about
[1:09:52] a a metadata center in a parish
[1:09:55] in Louisisiana that had
[1:09:56] significant positive impacts for
[1:09:57] the teachers in terms of of
[1:09:58] annual bonuse
[1:10:00] s so have you had any
[1:10:02] projections made or discussed
[1:10:04] with Google about how this might
[1:10:06] impact the schools in in umriney
[1:10:07] County.
[1:10:11] so I'll answer in two parts so
[1:10:13] the first part is obviously the
[1:10:13] revenue from the tax
[1:10:17] so we we still don't have
[1:10:18] exactly I'm still trying to plan
[1:10:20] that out as a superintendent.
[1:10:20] I'm trying to plan out 2,3,4
[1:10:23] years ahead so I don't know what
[1:10:24] that tax revenue is going to be
[1:10:26] and as you know with school
[1:10:28] finance just because our revenue
[1:10:29] comes up we may lose funding
[1:10:30] because of the equalization so
[1:10:31] we're trying to figure out where
[1:10:33] that balance is and what our
[1:10:34] increase is gonna be but there
[1:10:35] is going to be an increase
[1:10:38] so the second part we've had
[1:10:40] internal conversations with
[1:10:42] Google about other projects
[1:10:44] other things that we want to do
[1:10:47] to support our district we
[1:10:49] have some facility issues
[1:10:51] we're blessed with some
[1:10:53] resources but facility we have
[1:10:54] one of the oldest high schools
[1:10:56] in the state of Arkansas so
[1:10:57] we're looking at those type
[1:11:00] things my first thing is is
[1:11:02] about our people because you
[1:11:03] can't you it's hard to find
[1:11:04] teachers and it's hard to find
[1:11:05] good teachers so
[1:11:08] and I'll make a plug we've got
[1:11:09] one of the first merit pay we
[1:11:10] have our own school district
[1:11:12] merit pay in west memphis
[1:11:14] schools which is about400,000
[1:11:16] dollars we're gonna divvy up on
[1:11:17] teachers so it's significant. so
[1:11:19] that's important to me but I
[1:11:20] don't know how to plan that out
[1:11:22] yet until I have all the
[1:11:23] information and right now I
[1:11:23] don't have all that
[1:11:27] thank you and
[1:11:30] I've give a little leeway to
[1:11:31] representative Brooks while he
[1:11:32] is not a member of this
[1:11:34] committee he is chair of the
[1:11:36] houseducationittee and I knew he
[1:11:38] would have a relevant question
[1:11:39] for you so so thank you for that
[1:11:43] with no further questions thank
[1:11:46] you both for coming and the
[1:11:47] hard work you're doing to serve
[1:11:47] your folks and rerichtenon
[1:11:48] County.
[1:11:49] thank you for the opportunity
[1:11:52] thank you as well Next we'll
[1:11:56] have presentation by andrey
[1:11:57] Mr John bethel, director of
[1:11:59] public affairs, Mr David Palmer
[1:12:00] vice president of regulatory
[1:12:01] affairs if you too would come
[1:12:02] forward
[1:12:10] And and I also need to give the
[1:12:12] committee another heads up here
[1:12:13] I think this one might take a
[1:12:14] little longer than some of the
[1:12:18] others and I might cut if I do
[1:12:20] cut it off it would only be
[1:12:22] because I've recently learned
[1:12:23] that we will probably be
[1:12:28] scheduling a a another meeting
[1:12:29] in about four weeks
[1:12:30] and
[1:12:32] Misterrethle you'll get to come
[1:12:35] back then so I I'm only saying
[1:12:38] that is that I'm I'm usually
[1:12:39] when we have a hearing like this
[1:12:42] we flesh everything out we're
[1:12:44] not going to go on and on and on
[1:12:46] with this today where we I
[1:12:47] promise you that we we have some
[1:12:48] hard deadlines and we will we
[1:12:50] will get out of here but with
[1:12:51] that
[1:12:54] Mr bethel Mr Palmer I will
[1:12:55] ask you to introduce yourselves
[1:12:57] for the record and then you
[1:12:57] recognize
[1:13:00] good afternoon I'm John bethel
[1:13:01] I'm director of public affairs
[1:13:01] for Enterg Arkansas.
[1:13:03] turn your mic on
[1:13:05] show him how to do it John
[1:13:08] but
[1:13:10] David palmer vice president
[1:13:12] regulatory affairs entergy
[1:13:13] Arkansas thank you
[1:13:16] and good afternoon Mr
[1:13:18] chairman members of the
[1:13:18] committee we're pleased to be
[1:13:20] here and and to assist and we'll
[1:13:21] obviously show up anytime you
[1:13:22] you need our help we're glad to
[1:13:23] do that
[1:13:26] just want to hit on a couple of
[1:13:28] things before take questions
[1:13:30] but just we are pleased to
[1:13:32] help power Arkansas we're
[1:13:34] pleased to help support the
[1:13:34] health and welfare of the
[1:13:36] communities that we serve and
[1:13:38] the and the customers we serve
[1:13:40] in those communities and part of
[1:13:42] that is ensuring that we are
[1:13:44] able to provide reliable and
[1:13:47] affordable power and serving
[1:13:50] large customers such as a steel
[1:13:52] mill or a manufacturing facility
[1:13:53] or a data center helps toward
[1:13:54] that
[1:13:58] because as as Mr Adkins
[1:14:00] mentioned a large customer pays
[1:14:01] a large part of the utility's
[1:14:02] fixed costs which helps cover
[1:14:04] costs that customers would
[1:14:06] otherwise pay and with our data
[1:14:08] center customers we are
[1:14:10] contracting with them under our
[1:14:13] fair sharere plus pledge and
[1:14:14] Miss Wilson touched on that a
[1:14:16] little bit is is we contract
[1:14:18] with those customers to ensure
[1:14:20] that they pay the cost to serve
[1:14:22] them plus they pay additional
[1:14:23] amounts that help bring down the
[1:14:23] cost to our other customers
[1:14:28] and that has real benefits in
[1:14:30] terms of utility rates and so
[1:14:32] for our relationship with Google
[1:14:34] and our contract with Google it
[1:14:36] does provide over the life of
[1:14:37] the contract that they pay for
[1:14:39] the cost to serve them plus
[1:14:41] additional costs that bring down
[1:14:42] the cost that other customers
[1:14:44] pay for example if it costs real
[1:14:48] simply if it costs us $100 to to
[1:14:50] to pay goog to serve
[1:14:52] Google or a large customer and
[1:14:53] they pay rates that produce 1
[1:14:58] 3 $0 that30 dollars increment is
[1:15:00] the plus that helps to offset
[1:15:02] costs that customcus other
[1:15:03] customers would otherwise pay
[1:15:06] and you've probably seen
[1:15:08] information published in the
[1:15:10] newspaper about the Google
[1:15:12] contract specifically and it's
[1:15:15] it's not complete it's not
[1:15:17] and and there is more to the
[1:15:18] story than than what's been
[1:15:20] published but you can use that
[1:15:22] information alone to also
[1:15:24] demonstrate that Google is
[1:15:26] paying the cost to serve them
[1:15:28] plus the amount that it costs
[1:15:30] to serve them as reported was
[1:15:32] 1.6 billion the revenues from
[1:15:33] their contract is 2.
[1:15:36] $1 billion the half a billion
[1:15:38] dollar difference is the plus
[1:15:39] that helps bring down costs to
[1:15:40] our other customers and and pay
[1:15:42] costs that our other customers
[1:15:43] would otherwise have to pay
[1:15:46] you've probably seen information
[1:15:48] about the generating Arkansas
[1:15:50] Jobs Act that you passed
[1:15:52] to help support growth in
[1:15:54] Arkansas and as a part of that
[1:15:57] there is a a charge on
[1:15:58] customers bills as we build
[1:16:00] facilities that are approved by
[1:16:02] the publicervice commission and
[1:16:04] the financing cost during
[1:16:05] construction are recovered
[1:16:08] through that charge on customers
[1:16:09] bills and by doing that
[1:16:12] customers realize the benefit of
[1:16:13] a gradual change in rates rather
[1:16:13] than a large
[1:16:16] change in rates all at once and
[1:16:18] then on the back end by paying
[1:16:19] those financing costs during
[1:16:20] construction they don't pay
[1:16:22] those financing costs over the
[1:16:24] life of the asset which results
[1:16:26] in a long term savings to
[1:16:28] customers and our customers are
[1:16:31] seeing on the generating
[1:16:34] arkansas Jobs Act costs
[1:16:34] associated with financing the
[1:16:36] construction of the irronwood
[1:16:38] facility in Hot Spring County
[1:16:40] the Jeffersonoweration in
[1:16:42] Jefferson County and the cypress
[1:16:44] solar facility that's also
[1:16:46] located in Jefferson County and
[1:16:48] those charges are on the
[1:16:50] customer's bills because those
[1:16:51] resources serve all of our
[1:16:54] customers and particularly
[1:16:56] the the cyprus solar facility
[1:16:58] will provide energy cost savings
[1:16:59] over the life of that fac
[1:17:02] il ity in the neighborhood of
[1:17:04] 245 to650 million dollars that
[1:17:06] our customers will see over the
[1:17:10] life of that facility and when
[1:17:11] Google begins operating the
[1:17:13] revenues that they produce will
[1:17:15] more than offset the amounts
[1:17:16] that our customers are paying
[1:17:18] through the generating Arkansas
[1:17:19] Jobs Act that's a part again
[1:17:20] that's part of the plus
[1:17:21] associated with our fair share
[1:17:24] plus contracting with data
[1:17:26] center customers and so with
[1:17:28] that and in the interest of time
[1:17:29] David and I are available to
[1:17:32] to answer questions that you may
[1:17:33] have of us
[1:17:36] thank you Mr Prethel
[1:17:39] know this is a shock to you but
[1:17:42] I do have some questions I
[1:17:44] have been following the
[1:17:46] things going on that reported in
[1:17:48] the Democrat Gazette starting
[1:17:50] with the fact that you
[1:17:52] folks didn't seem particularly
[1:17:54] happy about the fact that there
[1:17:56] was a foia request made to the
[1:17:58] pSC and they received some inf
[1:18:00] some people received some
[1:18:02] information related to this
[1:18:06] and I'm I would be remiss if
[1:18:07] I didn't say I'm disappointed
[1:18:10] to seegy suing in federal court
[1:18:14] over a first amendment issue but
[1:18:16] Juge Ruowsky seemed to at
[1:18:18] least for the time being kick
[1:18:20] that can down the road and I
[1:18:23] guess to the extent you can
[1:18:24] comment on this and I don't
[1:18:27] badger witnesses to comment on
[1:18:28] something that's in litigation
[1:18:30] but this is unprecedented I've
[1:18:31] never seen anything quite like
[1:18:33] this where you know someone came
[1:18:36] in and and even my understanding
[1:18:37] and again correct me if I have
[1:18:37] this information
[1:18:40] wrong that's why I'm saying
[1:18:40] we're gonna come back inoctober
[1:18:41] and look at this a little more
[1:18:42] carefully but
[1:18:45] did anrogy in their
[1:18:50] filing specifically ask the
[1:18:52] judge to have the Democrat
[1:18:55] Gazette remove the information
[1:18:56] that was published from their
[1:18:57] website
[1:19:00] I I'll try to take that and
[1:19:02] thank you for the question
[1:19:03] senator Johnson
[1:19:06] let me go back and and
[1:19:08] reframe it a little because we
[1:19:11] didn't sue on behalf or have an
[1:19:12] issue with a foia request to a
[1:19:14] state agency that was not our
[1:19:17] issue I I believe state agencies
[1:19:17] respond to those all the time
[1:19:20] when we were made aware of the
[1:19:22] information that was obtained
[1:19:24] through the foia it was clear to
[1:19:25] us that some of that information
[1:19:28] was was protected pursuant to a
[1:19:29] protective order at the APSC
[1:19:32] that was the basis of our
[1:19:34] request to federal court was to
[1:19:36] keep that information that is
[1:19:38] subject to that protective order
[1:19:39] from public disclosure
[1:19:42] and the judge disagreed on the
[1:19:43] basis of some First amendment
[1:19:43] arguments that I couldn't
[1:19:44] articulate
[1:19:46] but that was the only basis we
[1:19:48] were seeking to protect
[1:19:50] confidential information that
[1:19:52] would not have otherwise been
[1:19:54] publicly disclosed but for the
[1:19:56] inadvertent release but it was
[1:19:59] released and did did y'all ask
[1:20:00] in your or and this is something
[1:20:02] that's in writing it's not like
[1:20:04] you you whispered it or anything
[1:20:08] did you ask that Juge Rudowsky
[1:20:08] in his order tell
[1:20:11] the Democrat gazette to take it
[1:20:12] off their website where I mean
[1:20:13] it's already been published they
[1:20:14] even some people might may not
[1:20:16] know this but they actually do
[1:20:17] have paper versions you can go
[1:20:19] buy if you want one I mean I get
[1:20:22] mine Monday through or Sunday
[1:20:23] Monday through Saturday
[1:20:24] electronically but there
[1:20:26] actually is a paper copy did did
[1:20:29] is that correct or did I
[1:20:32] misunderstand that I I would say
[1:20:34] we made two requests was to the
[1:20:36] extent that could be redacted in
[1:20:37] some form even though public
[1:20:38] disclosure was largely to your
[1:20:39] point
[1:20:42] already made on that information
[1:20:43] yes we were asking for the
[1:20:44] judge's direction on how that
[1:20:46] could be accomplished but we're
[1:20:47] also aware that there was
[1:20:50] additional information that was
[1:20:52] also released in that foyer that
[1:20:54] had not yet been made public and
[1:20:55] we were also focused on ensuring
[1:20:57] that that information did not
[1:20:59] subsequently get released it was
[1:21:01] twofold and the judge did deny
[1:21:03] at least and this this is all
[1:21:04] temporary I know you haven't had
[1:21:06] a long drawn out trial about
[1:21:07] this but he did deny a request
[1:21:08] to order the
[1:21:12] newspaper to to redact that or
[1:21:13] to take it off their website
[1:21:14] that is that my understanding
[1:21:16] correct yes sir and senator the
[1:21:19] information was inadvertently
[1:21:22] released in response to the
[1:21:22] freedom of Information Act
[1:21:24] request. It was information that
[1:21:25] as Mr Palmer pointed out was
[1:21:26] covered by a protective order
[1:21:28] because it was customer specific
[1:21:30] commercially sensitive
[1:21:32] information that warranted
[1:21:34] protection from disclosure as
[1:21:35] determined by the
[1:21:36] publiclicervice commission and
[1:21:38] also we would take the same
[1:21:39] approach
[1:21:42] to any customer's information it
[1:21:43] is our obligation under law and
[1:21:46] it is our obligation to take
[1:21:47] care of information that we have
[1:21:48] that's customerc specific and
[1:21:50] not to have that be disclosed
[1:21:53] that was the the issue it was
[1:21:54] not a matter of challenging
[1:21:55] whether a freedom of information
[1:21:57] actct request is appropriate or
[1:21:58] not it was a fact that
[1:22:00] information that shouldn't have
[1:22:02] been released in the response
[1:22:04] was released and it was trying
[1:22:06] to protect information that's
[1:22:07] customer specific just like we
[1:22:08] would do for any other customer
[1:22:09] that we serve
[1:22:13] well and appreciate that and and
[1:22:15] being one of your customers
[1:22:16] I would want you to
[1:22:18] talk about my information
[1:22:20] although I did bring my last
[1:22:22] bill and I have a couple of
[1:22:22] questions of you
[1:22:26] the and again as I said we're
[1:22:28] gonna come back to this in in
[1:22:34] inoctober but I have had pardon
[1:22:35] me for saying it this way I have
[1:22:38] had problem digesting this stuff
[1:22:39] I I'm the chairman of this
[1:22:40] committee I've served on it
[1:22:42] since I've been in the general
[1:22:45] assembly and this whole thing
[1:22:47] starting with generating
[1:22:48] Arkansas Jobs Act and
[1:22:52] subsequently is I've it boggles
[1:22:53] my mind sometimes to to
[1:22:54] figure this out to sound like
[1:22:56] it's like with Abbott and
[1:22:58] Costello it's who's on first and
[1:23:00] who's on second and I've had
[1:23:01] constituents that they're are
[1:23:04] pretty intelligent and smart
[1:23:05] people they try to come up and
[1:23:06] they say that it looks like a
[1:23:08] shell game to them first
[1:23:10] thing I want to ask about is
[1:23:13] in the and I'm I'm gonna use
[1:23:15] this figure contested if you
[1:23:18] wish the577 dollars monthly fee
[1:23:20] for the three power generation
[1:23:22] projects you referred to I
[1:23:23] got my
[1:23:23] bill.
[1:23:25] this is my latest bill
[1:23:29] and my if you if y'all haven't
[1:23:30] ever looked at your bill look on
[1:23:32] page two if you have an energy
[1:23:33] bill and it'll say current
[1:23:34] charges and then it'll sayy
[1:23:36] charges and after at the bottom
[1:23:38] it says the generating Arkansas
[1:23:40] Jobs Act well mine wasn't you
[1:23:43] know, uh5 dollars77 cents it was
[1:23:44] $22.81
[1:23:50] now I know that it's been hot
[1:23:52] and I know that maybe I have a
[1:23:54] bigger house but still that's a
[1:23:56] whole lot more money and I don't
[1:23:57] know where you came up with
[1:23:59] the577 I assume that's some kind
[1:24:00] of an average or a median
[1:24:02] because there's obviously there
[1:24:04] may be somebody out there paying
[1:24:06] less than5 dollars77 cents can
[1:24:08] you spread some light on this
[1:24:12] sheriff senator let me try as
[1:24:14] you noted usage is up right now
[1:24:16] because of the heat right
[1:24:18] residential customers pay a
[1:24:21] volumetric rate meaning you pay
[1:24:23] per usage. You heard Miss Wilson
[1:24:24] describe how some customers pay
[1:24:25] a demand charge
[1:24:28] you're only paying a rate that's
[1:24:30] expressed in terms ofcents per
[1:24:32] kilowatt hour so if you're using
[1:24:33] a lot you're going to pay more
[1:24:34] we have for
[1:24:38] I'll say decades utility has
[1:24:40] quoted our rates on an impact of
[1:24:44] 1000 kilowatt hours of usage. so
[1:24:46] the5 dollars77 cents is quoted
[1:24:48] as on 1000 kilowatt hours
[1:24:52] so if yours is four times that
[1:24:53] amount then you've got4 times
[1:24:55] more usage than the way we quote
[1:24:55] our standard rate
[1:25:00] mine says3,974 kilowatt hours
[1:25:02] during that billing period and
[1:25:04] it says the rate is the
[1:25:08] difference000574 which is about
[1:25:09] ive
[1:25:13] well a little over half a penny
[1:25:16] per kwh that's that's how I'm
[1:25:20] looking at but again we're gonna
[1:25:21] we're gonna
[1:25:22] I'm not gonna drag this thing
[1:25:24] out but we're gonna look at this
[1:25:25] once I actually have a chance to
[1:25:26] read all this stuff hear from
[1:25:28] the pSC and and and and come
[1:25:30] back on this and I guess I will
[1:25:32] finalize what I'm doing and and
[1:25:33] we've got people in the queue
[1:25:41] how much of that of my $22.81 is
[1:25:44] paying for Google or any other
[1:25:48] data center or shall we say
[1:25:50] large customer because that's
[1:25:51] certainly a
[1:25:55] an issue that has been debated
[1:25:57] both directions and you're
[1:25:58] talking about how they're paying
[1:26:00] for it but you know when this
[1:26:02] bill came up and you remember I
[1:26:05] called it a cost shift I said
[1:26:06] you're you know the old days
[1:26:10] before you had the writer
[1:26:12] your company would go to the
[1:26:13] capital markets whether it's
[1:26:16] issuing bonds or or you go to
[1:26:18] New York banks or or get
[1:26:20] your stockholder equity to pay
[1:26:21] for but
[1:26:22] you know the facility that
[1:26:26] generates power you guys paid
[1:26:29] for and now we the ratepayers
[1:26:30] you know and some of us may not
[1:26:31] live long enough to see these
[1:26:33] plants finished are paying for
[1:26:35] it right now now some of the
[1:26:37] justification is well we don't
[1:26:38] want to hit everybody with a
[1:26:40] great big bill all at once well
[1:26:42] for 100 years we've been doing
[1:26:44] it this way why is it suddenly
[1:26:45] not gonna work to use the
[1:26:49] traditional model where if
[1:26:50] you're a private company a
[1:26:51] regulated
[1:26:53] utility you get a guaranteed
[1:26:56] rate of return determined by the
[1:26:59] pSC and but you you know you
[1:27:02] pay your own upfront cost if if
[1:27:03] Sam Walton wanted to move to my
[1:27:04] come to my hometown of Conway
[1:27:06] which he did a long time ago and
[1:27:10] built a Walmart store he
[1:27:11] didn't ask the customers to
[1:27:12] start paying up front before
[1:27:14] they bought the first you know
[1:27:16] shirt or pair of socks in
[1:27:18] that Walmart and and this but
[1:27:20] this is what we're doing now and
[1:27:21] it's it's a cost shift that I'm
[1:27:21] I'm
[1:27:24] I'm not sure it completely
[1:27:28] parallels this issue with data
[1:27:29] centers although obviously they
[1:27:31] are a big industry a big user of
[1:27:32] power and you guys are dealing
[1:27:34] with them and thank you for
[1:27:36] doing that because I support the
[1:27:38] data centers both for our
[1:27:40] competitive factors with our
[1:27:41] adversaries around the world and
[1:27:43] the fact that you know I've got
[1:27:44] one of these things and I want
[1:27:48] it to work but I'm I just
[1:27:50] want to know is is you know
[1:27:50] suddenly I've got another extra
[1:27:51] $22.81 and how does this
[1:27:56] all tie together under the
[1:27:57] legislation and under the charts
[1:27:58] that's on your bill you're
[1:28:00] paying costs that you would
[1:28:00] otherwise pay under the
[1:28:02] traditional method under the new
[1:28:04] method that was approved under
[1:28:06] the generating Arkansas Jobs Act
[1:28:07] you're paying the financing
[1:28:08] costs associated with
[1:28:10] construction during construction
[1:28:12] under the traditional historic
[1:28:14] method that was in place before
[1:28:16] that we would spend the dollars
[1:28:18] accumulate those costs add that
[1:28:19] to what the cost of the plant
[1:28:21] was that we put into service and
[1:28:22] customers would pay those ex
[1:28:24] act same costs plus interest
[1:28:26] over the life of the asset which
[1:28:29] cost more than paying those
[1:28:31] costs on the front end during
[1:28:32] construction and not paying them
[1:28:34] on the back end as I talked
[1:28:36] about earlier it's a it's the
[1:28:37] same cost but it's a timing
[1:28:38] difference it saves money in
[1:28:40] financing costs that customers
[1:28:42] pay and it saves money and what
[1:28:43] actually comes out of their
[1:28:44] pocket over the time that the
[1:28:46] assets in service serving them
[1:28:49] and the assets that are
[1:28:50] included the three power plants
[1:28:52] currently are going to serve all
[1:28:53] of our customers
[1:28:55] well I guess I'm trying to
[1:28:58] differentiate how much of this
[1:29:00] comes from in this case we're
[1:29:02] talking about Google is one but
[1:29:04] we know there are others and
[1:29:06] how much is just the the usual
[1:29:10] growth because we're
[1:29:12] again I I've talked long enough
[1:29:13] I'm gonna move on and let some
[1:29:14] other people ask questions and
[1:29:16] first up ispresentative meeks
[1:29:18] whoop thank you Mr Chairman.
[1:29:20] well we're far right. so I
[1:29:22] just had a follow up question on
[1:29:23] the solar facility that's being
[1:29:24] built to help support this
[1:29:25] project.
[1:29:28] is there going to be any battery
[1:29:32] storage added to that
[1:29:33] solar project because I know one
[1:29:34] of the concerns that have been
[1:29:36] mentioned before is the demand
[1:29:37] response what happens if we get
[1:29:38] into an emergency situation
[1:29:41] obviously having that backup
[1:29:43] energy available would go a long
[1:29:44] way towards helping to relieve
[1:29:46] that issue so just curious if
[1:29:48] that was part of the the the
[1:29:52] plan here. yes re it is it's
[1:29:54] a600 megawatt solar facility and
[1:29:55] a350 megawatt battery
[1:29:58] energy storage system be part of
[1:29:59] it ok right thank you
[1:30:02] senator Mcee you're
[1:30:03] recognized
[1:30:06] thank you Mr Chairman. thanks
[1:30:08] for being here appreciate you
[1:30:10] so my my concerns surrounding
[1:30:12] the the use of the rider for
[1:30:13] this project whether it's
[1:30:15] cypress solar is is maybe you
[1:30:16] can help me understand why
[1:30:19] entergy decided to take the
[1:30:20] contributions made by Google
[1:30:22] and apply them as other
[1:30:24] contributions instead of kayak
[1:30:26] payments and help help me
[1:30:26] understand the process of why
[1:30:28] that why that benefits
[1:30:29] ratepayers
[1:30:32] because unfortunately I don't
[1:30:32] think that's how most ratepayers
[1:30:33] look at that
[1:30:36] right and thank you and it's it
[1:30:37] is a little hard to explain also
[1:30:40] so if I could maybe take it in
[1:30:42] pieces so if you if you step
[1:30:44] back and think about the
[1:30:45] timeline that Miss Wilson
[1:30:46] explained you know they're
[1:30:47] they're actively pursuing
[1:30:48] construction of their facility
[1:30:51] with an expected in service date
[1:30:53] sometime next year with some
[1:30:54] level of needing to add their
[1:30:56] load in increments as they ramp
[1:30:57] up their
[1:30:59] data product whatever it is
[1:30:59] their ramp
[1:31:04] we're faced with needing to get
[1:31:06] the facility under construction
[1:31:08] and completed because we need it
[1:31:10] to sync up with the load coming
[1:31:12] online. we also are pursuing
[1:31:14] advantages through the tax code
[1:31:15] so we get tax credits for that
[1:31:16] facility that there are
[1:31:18] requirements that have shifted
[1:31:20] even before even as we were
[1:31:21] negotiating with Google
[1:31:22] so
[1:31:24] from a timing standpoint we're
[1:31:26] faced with what we've got to get
[1:31:27] the construction started. We
[1:31:28] need the financial support to
[1:31:30] for the construction of the
[1:31:32] project there's also this build
[1:31:33] out that Google's gonna have to
[1:31:34] do before they're actually
[1:31:36] spinning that meter and paying
[1:31:37] those rates
[1:31:40] so so the the rider became the
[1:31:42] mechanism for cost recovery
[1:31:44] which included what Mr. Bethel
[1:31:45] just described which was to go
[1:31:45] ahead and
[1:31:48] begin recovering some of the
[1:31:50] financing cost support for that
[1:31:51] resource which again
[1:31:54] all of the energy cost savings
[1:31:56] go to all customers as well so
[1:31:58] there's a bit of a you you're
[1:32:00] paying for all the costs but
[1:32:01] you're also getting all the
[1:32:04] benefits what we further did was
[1:32:06] design Google's rates where they
[1:32:08] would cover the full cost of
[1:32:10] their service so there may be a
[1:32:12] line item on the bill that says
[1:32:14] here's a cost that they caused
[1:32:16] but their rates are designed to
[1:32:18] more than cover that cost it's
[1:32:19] just individually called out on
[1:32:20] the bill through the writer and
[1:32:21] will that be demons
[1:32:23] tra ted over how many years? I
[1:32:25] mean I I saw the report in
[1:32:28] for the godger rider that you
[1:32:30] filed last month I believe with
[1:32:32] PSC so is that over is that
[1:32:33] over ive years that that happens
[1:32:34] or what what does that look like
[1:32:37] we we we filed the rotter in
[1:32:39] early March. the rates went into
[1:32:41] effect in June and we provide a
[1:32:43] five year forecast to what those
[1:32:44] rates look like but we're
[1:32:45] talking over the life of
[1:32:48] Google's entire contract and
[1:32:49] back to your your other question
[1:32:50] relative to the kayak treatment
[1:32:51] or the non kayak
[1:32:51] treatment
[1:32:54] there were advantages both to
[1:32:56] the company and the customer for
[1:32:58] how we approach that single
[1:33:00] question so if you're if I don't
[1:33:01] want to speak on behalf of
[1:33:02] Google but if you are
[1:33:04] if you you know there may be
[1:33:06] accounting or tax reasons why
[1:33:08] you wouldn't want a payment to a
[1:33:10] utility to be a capital payment
[1:33:11] towards an asset
[1:33:14] from our point of view the
[1:33:16] benefits come back either way
[1:33:17] because you're still going
[1:33:19] offset the total cost of that
[1:33:20] resource by that amount it's
[1:33:22] just whether you do it all at
[1:33:23] once or over time
[1:33:26] what we provided in our filing
[1:33:29] with the commission was what we
[1:33:31] fully expect we're we see that
[1:33:32] the rates because they are
[1:33:35] higher than the cost to serve or
[1:33:36] already putting downward
[1:33:37] pressure on rates
[1:33:40] so that opened the door for
[1:33:42] alternative treatment to further
[1:33:44] spread those benefits benefits
[1:33:46] out over a longer period of time
[1:33:48] ultimately getting to the same
[1:33:50] place but you get same benefits
[1:33:52] for all customers but instead of
[1:33:53] being all at once you get some
[1:33:55] rate smoothing but also now you
[1:33:58] have long term benefits because
[1:33:59] when you when you take whether
[1:34:00] it's5 or600 million dollar
[1:34:02] contribution from Google you
[1:34:03] know I think what a lot of
[1:34:03] people expected was
[1:34:05] you don't have to request 1.6
[1:34:05] billion
[1:34:10] you know in rates through the
[1:34:11] rider you you know you just you
[1:34:11] ask for one
[1:34:14] and so that's that's the short
[1:34:16] term thinking right but I think
[1:34:18] that that explains why well we
[1:34:20] we take a step back so what we
[1:34:22] would say is in this example
[1:34:24] instead of 1.6 it would be 2
[1:34:25] billion
[1:34:28] so we're not putting 2 billion
[1:34:29] in rates we're putting 1.6 in
[1:34:32] rates the question is are we
[1:34:32] collecting that rate through the
[1:34:34] roder or through some other
[1:34:37] mechanism either way Google's
[1:34:38] revenues come into the equation
[1:34:39] and they offset all of our cost
[1:34:46] and last question cyprus
[1:34:48] that helps fulfill obligations
[1:34:49] that arose out of the consent
[1:34:52] decreeright that called on the
[1:34:53] cessation of burning coal at
[1:34:56] independence and Whitebluff is
[1:34:56] that help fulfill those
[1:34:57] obligations
[1:34:58] ' m recalling the
[1:35:02] don't it wasn't a direct
[1:35:05] reason or justification for it
[1:35:05] to the extent there were
[1:35:10] it's part of the resources
[1:35:11] necessary to replace the the
[1:35:13] generation that we are from
[1:35:14] ceasing to burn coal but it's
[1:35:16] not the it's not the entire
[1:35:18] amount but it's part of our
[1:35:22] our resource mix going forward
[1:35:23] and as you and I have talked
[1:35:24] about we have an adequate
[1:35:26] amount of dispatchable
[1:35:28] generation that's available all
[1:35:30] the time and then the renewable
[1:35:32] resources that we have provide
[1:35:34] fuel cost savings that will help
[1:35:35] all of our customers as well
[1:35:36] thank you gentlemen
[1:35:37] thank you
[1:35:40] Thank you Senator Mcee because
[1:35:42] you you kinda phrased the
[1:35:44] question I had a little more
[1:35:46] succinctly and I appreciate the
[1:35:47] answer on that
[1:35:50] Senator hickey you recognized
[1:35:55] thank you Mr chairir. Mr
[1:35:57] bethel of course we know
[1:35:58] whenever the seawhip bill was
[1:35:59] done that
[1:36:02] yourself and some others and
[1:36:04] probably about five or six of us
[1:36:06] sat in my office for hours upon
[1:36:07] hours and what I remember
[1:36:10] from every legislator that was
[1:36:11] in there or basically every
[1:36:12] legislator in there that the
[1:36:13] number one thing that we were
[1:36:14] gonna worry about was ratepayers
[1:36:16] we understood that you all had
[1:36:18] shareholders although you're a
[1:36:20] monopoly you're also a publicly
[1:36:21] traded company.
[1:36:23] and that was stated over and
[1:36:25] over and over again and if I
[1:36:26] remember correctly we had a six
[1:36:27] ppage amendment
[1:36:28] that went on to this
[1:36:31] and the original one didn't even
[1:36:32] have the psC in there and of
[1:36:34] course you know we've got
[1:36:35] through all this and I've heard
[1:36:37] what some people say, you know,
[1:36:38] you know, I don't
[1:36:39] particularly like this like this
[1:36:40] spill
[1:36:42] but you all sit down there and
[1:36:44] you sit there and you say well
[1:36:46] it's better that we're doing it
[1:36:48] this way because it you know
[1:36:50] it's getting spread out and the
[1:36:51] rates are less
[1:36:52] but in my mind
[1:36:56] I want to see that proved up
[1:36:58] and maybe through the psC and
[1:36:59] Mr. Webb
[1:37:02] you know, I want to know that
[1:37:04] you all agree with that and
[1:37:04] publicly out there because from
[1:37:05] my standpoint
[1:37:10] I want to know that if you did
[1:37:12] do the financing less so in
[1:37:12] other words if it wasn't put on
[1:37:13] the bill
[1:37:15] if you took that money and just
[1:37:15] went straight
[1:37:17] to it so that that's
[1:37:20] construction work in progress
[1:37:22] was not put on that rider that
[1:37:24] it would not be not be more
[1:37:26] beneficial, you know, to our
[1:37:28] ratepayers which are our
[1:37:30] shareholders. I don't blame you
[1:37:31] for what you do for your
[1:37:32] shareholders and Mr. Palmer, I
[1:37:34] don't really know you but read
[1:37:35] what you said in the paper
[1:37:37] also listened to what you said
[1:37:39] in here you know you said that
[1:37:41] you know it does help cover all
[1:37:42] of our costs. Well I assume all
[1:37:44] of your costs are also part of
[1:37:45] your dividends
[1:37:46] that you're paying to your
[1:37:47] shareholders
[1:37:48] so
[1:37:51] you know from my standpoint yes
[1:37:53] I can see where the way that
[1:37:54] you're doing it does cover your
[1:37:55] costs which I assume
[1:37:58] wouldn't you agree that a
[1:38:00] dividend's part of your cost but
[1:38:01] that's for a benefit of your
[1:38:02] shareholder
[1:38:05] which if we just applied it
[1:38:07] directly to the C whip program
[1:38:08] and we didn't put this on the
[1:38:10] ratepayer's bill y'all's earning
[1:38:11] per share may be less
[1:38:14] but at least it wouldn't be on
[1:38:15] our ratepayers's bills
[1:38:19] I don't know you know I can sit
[1:38:20] out here and listen to all this
[1:38:21] but I don't know how we justify
[1:38:21] that
[1:38:26] I I was hoping that since we put
[1:38:28] this back through the PSC that
[1:38:30] this type of stuff would be
[1:38:32] covered but at this point right
[1:38:33] here, I think that there's
[1:38:35] enough people out here that
[1:38:36] need to see that need to try to
[1:38:38] understand it so that we can
[1:38:40] relay that back to our
[1:38:41] shareholders the ratepayers
[1:38:42] So I don't know if you want to
[1:38:44] comment to that or where we go
[1:38:46] with that. I've just I
[1:38:46] personally do not like what I'm
[1:38:47] seeing
[1:38:49] well senator, I appreciate that
[1:38:50] and all of the costs that are
[1:38:52] included in the yder were
[1:38:53] authorized by the Public Service
[1:38:53] commission
[1:38:56] and they're subject to public
[1:38:57] service commission review
[1:38:58] throughout and they are costs
[1:39:00] that would be recovered one way
[1:39:02] or another the the traditional
[1:39:04] method that's been used in the
[1:39:06] past is to accumulate those
[1:39:08] costs during construction adddd
[1:39:09] them to the cost of the facility
[1:39:10] recover them over the life'm
[1:39:11] well I'm well aware of that
[1:39:12] little spin that we put on it
[1:39:13] you know with the
[1:39:16] financing cost and this and that
[1:39:18] and that that only works I guess
[1:39:20] as as long as everything's on
[1:39:21] the on the up and up it's just
[1:39:22] you know I have to look at it
[1:39:24] from another standpoint that
[1:39:26] although5 dollars a month is not
[1:39:28] going to draw any interest for
[1:39:29] anybody the cumulative effect
[1:39:30] over the whole the whole
[1:39:32] ratepayer you know the lost
[1:39:34] interest that they're going to
[1:39:35] be receiving during the time
[1:39:36] that you normally would build
[1:39:37] and
[1:39:40] was paying your own interest and
[1:39:41] those costs you know we had to
[1:39:42] calculate those in and net those
[1:39:44] out. So you know, I can look at
[1:39:46] it a different way like that but
[1:39:47] I just it just seems odd to me
[1:39:51] it just it just seems odd to me
[1:39:54] that with as much talk that was
[1:39:55] done whenever we were trying to
[1:39:56] prepare this amendment and it's
[1:39:58] a complicated bill. I mean, I'll
[1:39:59] be the first to say and it's
[1:40:00] even hard for me to understand
[1:40:01] being involved with it some
[1:40:04] but it's hard for me to
[1:40:05] understand
[1:40:08] whenever you look at this thing
[1:40:09] that from y'all's standpoint
[1:40:12] and you and this is your
[1:40:13] responsibility that your
[1:40:14] responsibilities to your
[1:40:15] shareholders
[1:40:18] why that you wouldn't have
[1:40:19] reduced the cost of the sea whip
[1:40:21] instead of doing it the way that
[1:40:22] you've done it
[1:40:24] and I just think that that needs
[1:40:28] to be proved up and once it is
[1:40:29] proved up I would like an
[1:40:32] explanation from the PSC and
[1:40:34] maybe some other attorneys and
[1:40:36] things like that that this is
[1:40:38] the most most effective way to
[1:40:39] do it for the ratepayer in this
[1:40:39] case
[1:40:42] so Mr chairir that may be more
[1:40:44] of a statement but like I say, I
[1:40:46] just would agree is that your
[1:40:48] question No'm not asking that
[1:40:49] because I don't I don't know and
[1:40:50] I don't think any of us know
[1:40:52] Senator hickey you have brought
[1:40:54] forth something that is the
[1:40:56] reason why I see us coming back
[1:40:58] next month and looking at this
[1:40:59] maybe with a little bit better
[1:41:02] magnifying glass a lot of
[1:41:04] this information that we're
[1:41:04] talking about today is stuff
[1:41:06] we've just learned whether
[1:41:07] the
[1:41:11] the articles in the
[1:41:14] newspaper were correct or not we
[1:41:15] don't know but they've been
[1:41:16] thrown out there and it's data
[1:41:18] that we have to deal with so
[1:41:20] I appreciate your comment I I
[1:41:22] agree with your comment and I
[1:41:25] want to I want give Mr bethel
[1:41:27] and Mr Palmer a chance to
[1:41:29] respond but I can also take
[1:41:30] gentlemen if y'all want to wait
[1:41:32] about a month we'll we'll we'll
[1:41:34] be back and maybe have our
[1:41:36] questions a little more concise
[1:41:37] but certainly feel free to to
[1:41:40] respond to whatsenator hickey
[1:41:41] said
[1:41:44] yeah we're certainly happy to
[1:41:46] come back. I would say and I
[1:41:47] don't want to take the wind out
[1:41:48] of Chairman Webb's sales but
[1:41:50] they did the when we got the
[1:41:52] rodder through the regulatory
[1:41:53] process at the APSC they did
[1:41:55] establish some reporting
[1:41:56] requirements around some of the
[1:41:57] very questions you're asking
[1:42:00] so that we can expand upon that
[1:42:02] with when I have it in front of
[1:42:04] me but the cost comparison the
[1:42:04] jobs and all the things that the
[1:42:06] law addresses the commission was
[1:42:08] very intently focused on when we
[1:42:10] brought that rider before him so
[1:42:12] there is some reporting
[1:42:13] obligations that we have that
[1:42:14] feed into their their reporting
[1:42:16] obligations as well but I don't
[1:42:18] want to speak on their behalf
[1:42:24] you'll be recognized you you can
[1:42:25] go to the top of the list
[1:42:26] senator hickey at that time OK
[1:42:27] thank you
[1:42:30] p re s ent ative innnnett and
[1:42:32] I'm gonna encourage you to be
[1:42:33] concise and quick
[1:42:35] yes sir
[1:42:38] thank you Mr Chairman. I have
[1:42:42] a question Mr bethel how much
[1:42:44] additional generating capacity
[1:42:46] will be needed for the google
[1:42:48] and LittleRock in the bio data
[1:42:49] centers
[1:42:54] Yeah if I could take that so
[1:42:58] beyond cypress solar that we've
[1:43:00] discussed we don't have any
[1:43:01] additional plans because of
[1:43:01] those two customers.
[1:43:07] and we residential customers be
[1:43:08] paying to finance the
[1:43:09] construction
[1:43:14] force of cypress solar no for
[1:43:15] the
[1:43:17] yeah for cy yes yes
[1:43:21] thank you that was part of our
[1:43:22] discussion of what's currently
[1:43:24] in the rotter. So Cyprus solars
[1:43:26] financing costs are currently on
[1:43:29] bills in that rider one more
[1:43:29] question
[1:43:32] but you better be quick I have
[1:43:33] to cut you off
[1:43:36] how was still River solar in
[1:43:37] Mississippi County be used?
[1:43:41] Steelleriver is an independent
[1:43:42] project that Google pursued on
[1:43:44] their own so we don't currently
[1:43:46] have any interaction with that
[1:43:48] facility. They they negotiated
[1:43:49] that on their own behalf and
[1:43:49] they they dealt with the
[1:43:50] counterparty.
[1:43:53] thank you thank youpresentative
[1:43:56] Bennett senator penzo and I'm
[1:43:58] not putting you seriously under
[1:44:00] the gun but please be mindful of
[1:44:01] our time I'll make it snappy
[1:44:02] thank you
[1:44:06] Mr Chair. how what's the
[1:44:09] expected energy consumption
[1:44:10] of the google Dataenter.
[1:44:16] I don't believe Google has said
[1:44:18] publicly exactly what their
[1:44:19] total demand is.
[1:44:21] we'd be I'd be careful I
[1:44:22] wouldn't want to disclose it on
[1:44:24] their behalf. OK, so we don't
[1:44:25] know if the
[1:44:28] 600 megawatts over or under what
[1:44:29] we need is that accurate?
[1:44:35] it's not public I would say we
[1:44:36] have demonstrated we have
[1:44:38] adequate generation with the
[1:44:40] addition of their load when we
[1:44:42] put cypress solar into our what
[1:44:44] we call production cost bottles
[1:44:45] which is how we model the entire
[1:44:47] bulk electric system with our
[1:44:49] load decide what resources we
[1:44:49] may or may not need
[1:44:54] when we put our generation fleet
[1:44:56] in the model with their load and
[1:44:57] cypress solar
[1:45:00] we see resource adequacy and we
[1:45:02] see our costs we see cost
[1:45:03] savings because our variable
[1:45:04] supply comes down those are the
[1:45:05] cost
[1:45:07] those are the energy benefits
[1:45:08] that we quoted or Mr bethel
[1:45:10] quoted for that facility quick
[1:45:13] quick follow up on that so is
[1:45:13] the
[1:45:16] did did I catch you saying that
[1:45:18] the the whole project's a $2
[1:45:19] billion project
[1:45:23] I think you're referring to Mr.
[1:45:23] Bethel's intro.
[1:45:26] well I mean oh well my on cyprus
[1:45:28] solar on cypress solar only is
[1:45:31] that rough math we've got the
[1:45:34] cost estimate is 1.6 billion but
[1:45:36] that is exclus excluding the
[1:45:37] financing costs we would
[1:45:37] otherwise
[1:45:41] put into that and recover over
[1:45:42] the 30 year useful life OK and
[1:45:48] the full 1.6 billion cost is
[1:45:50] part of that577 a month that
[1:45:52] goes to the ratepayer that full
[1:45:53] 1.6 billion? No right now
[1:45:57] and don't quote me on the math
[1:45:58] we've got that five year
[1:46:00] forecast that Senator Mcee
[1:46:02] discussed for the rider. so
[1:46:03] we're in year one of the
[1:46:03] construction activity
[1:46:08] so of the5 dollars77 cents per
[1:46:09] 1000 kilowatt hours that we
[1:46:09] quoted
[1:46:12] there's about 1 dollar76 cent
[1:46:14] that would be attributed to
[1:46:16] cypress solar that reflects the
[1:46:17] year one
[1:46:20] financing cost or the support
[1:46:21] for the financing costs for the
[1:46:23] year one capital outlay the full
[1:46:26] 1.6 wouldn't be in rates until
[1:46:27] it goes completely into service
[1:46:27] in
[1:46:30] a couple of years I can't
[1:46:31] remember the exact date
[1:46:34] and what's that change to 1.76
[1:46:35] what will that change to in the
[1:46:39] operational year? I I would be
[1:46:40] speculating if I tried to do
[1:46:42] that math right now that's good
[1:46:44] for now thank you but it is just
[1:46:46] the the financing cost is all
[1:46:47] that's recovered during the
[1:46:50] construction period and then the
[1:46:51] the total investment is
[1:46:52] recovered over the life of the
[1:46:54] asset and spread out over the
[1:46:56] life of the asset it's not all
[1:46:57] recovered at once.
[1:47:02] OK thank you Senator Penzo
[1:47:03] uhpresentativehudson you're
[1:47:03] recognized
[1:47:08] thank you senator and I
[1:47:08] appreciate you letting me ask a
[1:47:10] quick question and this kind of
[1:47:12] taps on to what Senator penzo
[1:47:14] was asking y'all about I was
[1:47:16] looking through an old article
[1:47:18] from the demgaz from March while
[1:47:20] everyone was talking and this
[1:47:22] was one of the first references
[1:47:24] to the5 dollars77 cents rider in
[1:47:28] that article it was reported
[1:47:29] that entergy estimated
[1:47:30] residential customers would see
[1:47:32] a monthly increase of7 dollars 9
[1:47:34] cents in the first year and by
[1:47:35] year5 customers could be paying
[1:47:40] up to $21.85 a month which would
[1:47:42] be4x what people are paying
[1:47:42] right now if you use the5
[1:47:46] dollars77 cents and then if you
[1:47:47] look at what senator Johnson was
[1:47:48] paying which is already $20
[1:47:50] something dollars, can he expect
[1:47:51] that his is going to go up to
[1:47:51] $80 in the next five years?
[1:47:58] no. thank you for the
[1:48:00] question. I believe the March
[1:48:01] article was referencing when we
[1:48:06] don't quote me on the math but
[1:48:08] we had proposed a different cost
[1:48:09] allocation that ultimately got
[1:48:09] approved by the commission
[1:48:12] and so there may have been some
[1:48:14] reporting on what we had said
[1:48:16] previously we the the
[1:48:18] legislation laid out a process
[1:48:20] where we had to go to the
[1:48:20] commission to get the roder
[1:48:24] established and then we provided
[1:48:26] our first update to that rider
[1:48:28] this year so when we went in
[1:48:29] last year
[1:48:30] to get the roder established
[1:48:35] we do the utility ratema here's
[1:48:37] how the costs come in here's
[1:48:39] what we'd go to residential if
[1:48:40] we do this approach versus that
[1:48:41] approach
[1:48:46] when our filing had a cost
[1:48:47] allocation among residential
[1:48:50] commercial industrial customers
[1:48:51] that was that original math and
[1:48:52] then what the commission
[1:48:54] approved had a different
[1:48:56] allocation so when we quoted the
[1:48:58] approved the residential number
[1:48:59] went to the5 dollars77 cents
[1:49:08] so
[1:49:12] so ratepayers don't have to
[1:49:14] worry then that this this5
[1:49:16] dollars77 cents or whatever
[1:49:16] they're paying right now is
[1:49:18] going to go up by4 or5 times in
[1:49:20] the next five years is that is
[1:49:20] that accurate
[1:49:22] we file a schedule that shows
[1:49:24] exactly what it's going to go up
[1:49:26] by based on the capital outlays
[1:49:28] we see for those resources so it
[1:49:30] will increase because we're
[1:49:32] building those facilities but
[1:49:34] when they're built it stops to
[1:49:36] beth Mister bethel's point at
[1:49:37] the fully cost at the full cost
[1:49:37] of
[1:49:38] that plant and then that's it
[1:49:40] and then that cost is
[1:49:42] depreciated over the life of the
[1:49:44] asset so all we're what we're
[1:49:45] talking about is
[1:49:48] instead of the rate going up to
[1:49:50] the full amount and then
[1:49:52] depreciate it down we're able to
[1:49:52] get some level of support
[1:49:56] now in that reduces the overall
[1:49:58] amount that then depreciates
[1:50:00] over time but we we provide that
[1:50:01] forecast in our rate filing.
[1:50:06] thank you Representative Hudson
[1:50:08] senator Irvin you're
[1:50:09] recognized. Does that rate
[1:50:09] forecast ever get
[1:50:12] changed
[1:50:18] the rate forecast in the roder I
[1:50:20] think it would move if I were
[1:50:22] because when we say the
[1:50:24] financing cost we're basing that
[1:50:26] on how much capital we have to
[1:50:26] spend so just to make up a
[1:50:28] number if we have to spend
[1:50:32] 50 $0 million next year to
[1:50:34] support building those three
[1:50:36] assets we're going to recover
[1:50:37] the financing cost for the500
[1:50:37] million
[1:50:42] if that500 swings because of how
[1:50:43] we've contracted with this
[1:50:44] construction company or that
[1:50:46] because we're using cost
[1:50:48] estimates for building these
[1:50:50] resources that would move it but
[1:50:52] otherwise it would largely
[1:50:53] follow exactly what we filed and
[1:50:54] at any time that you make any
[1:50:56] kind of an adjustment to that
[1:50:58] rate schedule or increase that
[1:50:59] goes before the PSC
[1:51:01] at any time or is it just
[1:51:04] at a certain time of the year
[1:51:08] can you do that without going no
[1:51:10] it's a it's a we update it
[1:51:10] annually just like our other
[1:51:12] mechanisms so we'll file early
[1:51:14] March for rates for June every
[1:51:15] year.
[1:51:20] and the the law provides for an
[1:51:20] annual filing so it it's a once
[1:51:21] a year
[1:51:24] revisit of of the and setting of
[1:51:26] the you can only adjust it once
[1:51:27] a year you can't adjust it any
[1:51:27] other time.
[1:51:30] it's only once a year yes ma'am
[1:51:34] and then like you said based on
[1:51:36] whatever you spend, whatever you
[1:51:38] presented to begin with as far
[1:51:40] as an estimate to representative
[1:51:42] Hudson's question the math is
[1:51:43] going to be
[1:51:46] different or is it going to be
[1:51:46] the same that you presented or
[1:51:48] it could change. It should
[1:51:50] largely be what was presented.
[1:51:52] I'm just noting that those
[1:51:52] numbers may shift a little
[1:51:54] because we are building3 large
[1:51:55] resources so
[1:51:58] over a three or four year
[1:51:58] construction window things might
[1:52:00] move a little but it should
[1:52:00] largely track what was filed
[1:52:04] thank you senator
[1:52:09] Mr Bethham Mr palmer thank you
[1:52:12] for coming we're as a Iu I
[1:52:12] warned you I guess I should say
[1:52:14] we're gonna have to come back
[1:52:16] and talk about this some more
[1:52:17] and committee members I'm
[1:52:19] I spoke with
[1:52:22] my vice chair senator Mcee and
[1:52:23] we're we're trying to work out
[1:52:24] of things so we're not here
[1:52:28] for another 23 hours and so
[1:52:30] we're looking at since we
[1:52:32] really this was not just about
[1:52:36] data centers is also about rates
[1:52:38] and the rider and the charges
[1:52:38] I'm gonna try to try to
[1:52:42] bifurcate this this subject
[1:52:44] we're going to hear from
[1:52:46] items6 and7 which is central
[1:52:47] Arkansas water and
[1:52:47] littlettleRock
[1:52:48] waterterreclamation Authority
[1:52:49] and then we will
[1:52:52] set a new agenda for our next
[1:52:56] meeting that would include of
[1:52:58] coursegy but also electric
[1:53:00] cooperatives and the PSC and I
[1:53:02] want to apologize to Mr Hasten
[1:53:04] and Chairman Webb and Mshofer
[1:53:08] for this postponement I know
[1:53:10] do it's not the first time
[1:53:10] you've had to sit through a
[1:53:12] hearing and he didn't get to
[1:53:14] your bill or whatever but
[1:53:18] I also wanna say to Chairman
[1:53:19] Webb our prayers are with
[1:53:19] Justice Webb
[1:53:22] for her speedy recovery and
[1:53:24] having her back on the court but
[1:53:26] just please extend all of our
[1:53:28] prayers to her that will be do
[1:53:30] and so if you would thank you
[1:53:32] folks for being here and if I
[1:53:36] would ask and Mr Bohannon M
[1:53:38] Block and Mr. Benfield could
[1:53:40] come on up. I think we can do
[1:53:42] this panel pretty quickly and
[1:53:44] we'll take everything else up
[1:53:45] at our next meeting
[1:53:48] is there a motion for that
[1:53:49] senator Mcee?
[1:53:54] is this second by senator
[1:53:56] the motion is that we'll change
[1:53:58] the agenda and finish this next
[1:53:59] month
[1:54:00] yes ma'am
[1:54:03] en er ban yeah
[1:54:06] thank you but I do I do think
[1:54:10] that we want to respect Senator
[1:54:10] hickey had a question for PSC
[1:54:12] and I don't know if senator
[1:54:12] hickey wants to
[1:54:14] next month I just wanted to make
[1:54:16] sure thank you senator Irvin and
[1:54:20] certainly we'll make sure we're
[1:54:21] right and then second all in
[1:54:21] favor say aye
[1:54:26] oppose ok thank you will and
[1:54:28] thank the three of y'all for
[1:54:30] waiting and we probably
[1:54:30] should have moved y'all up right
[1:54:32] after West memphis but that's ok
[1:54:34] we we we got you in today I
[1:54:35] don't wanna make you come back
[1:54:38] if you would each
[1:54:39] introduce yourselves for the
[1:54:39] record I would appreciate it
[1:54:44] yes sir I'm Jeanlock CEO of
[1:54:45] LittleRock Water Reclamation
[1:54:45] Authority.
[1:54:48] Rryan bennefield the chief
[1:54:50] operating officer for with
[1:54:50] LittleRock Water Reclamation
[1:54:51] Authority.
[1:55:04] my name is Tad Bohanon I'm the
[1:55:06] CEO of Central Arkansas Water.
[1:55:08] OK thank you and since you're
[1:55:10] first on the list MrRohannon I'm
[1:55:11] gonna let you go first
[1:55:14] well thank you all thank you
[1:55:15] chair senator Johnson thank you
[1:55:16] all for the invitation to be
[1:55:19] here we have had a long
[1:55:20] afternoon so I'll try to keep
[1:55:24] this as as short as possible
[1:55:26] central Arkansas water is a
[1:55:28] potential provider of water to
[1:55:29] two data centers in central
[1:55:31] Arkansas one being the
[1:55:34] Aveoenter on pulaski County and
[1:55:36] the other being the Google
[1:55:38] Center at the LittleRock Port
[1:55:40] Authority. I say a potential
[1:55:40] water provider because
[1:55:44] as of this point there has been
[1:55:46] no application filed to receive
[1:55:49] water from central to receive
[1:55:50] water from us at either data
[1:55:54] center and no plans for the
[1:55:56] development have been filed so
[1:55:59] it's it is a potential now
[1:56:01] I'm not trying to dismiss that
[1:56:04] but we also do not know the
[1:56:06] final details of what they are
[1:56:10] planning to do on those sites as
[1:56:11] far as water
[1:56:11] consumption.
[1:56:14] so
[1:56:18] until that occurs we can talk
[1:56:20] about the generalities that you
[1:56:22] have heard in the press in
[1:56:25] another conversations and our
[1:56:27] approach to it and I think the
[1:56:30] important thing to realize there
[1:56:32] is that central Arkansas water
[1:56:34] does not look at this economic
[1:56:36] development project any
[1:56:38] differently than it looks at any
[1:56:41] other economic development
[1:56:42] project and we are agno
[1:56:45] s tic as to what those projects
[1:56:48] are it is not our job as a water
[1:56:51] utility to say yes we like this
[1:56:54] project and no we don't like
[1:56:56] this project if a community is
[1:56:58] gonna have a project then we
[1:57:00] have to look at it and say can
[1:57:02] we provide water and if we're
[1:57:05] gonna provide water what are the
[1:57:07] terms and conditions of
[1:57:07] providing that water
[1:57:12] in this instance and how we are
[1:57:14] with all economic development
[1:57:16] opportunities if there are
[1:57:18] capital improvements that are
[1:57:19] required to be made to the
[1:57:22] system the developer of the
[1:57:24] project is required to make
[1:57:24] those capital improvements
[1:57:29] it doesn't matter if it's a
[1:57:31] Walmart store going on to an
[1:57:34] area that has not had service a
[1:57:36] data center on amazon warehouse
[1:57:37] or
[1:57:40] a residential subdivision a
[1:57:44] developer comes in with a re
[1:57:45] subdivision and says we want to
[1:57:48] build 200 homes and we say here
[1:57:50] is the water infrastructure that
[1:57:51] you must construct and pay for
[1:57:55] amazon warehouse came in and
[1:57:56] said we want to build a
[1:57:58] warehouse we said here is the
[1:58:00] infrastructure you are required
[1:58:03] to pay for and so it's the same
[1:58:06] analysis the only analysis that
[1:58:09] may somewhat be different is the
[1:58:11] size of the numbers that people
[1:58:14] have talked about in potential
[1:58:14] water consumption
[1:58:16] so
[1:58:20] let's look at that a little bit
[1:58:22] in that central Arkansas water
[1:58:27] yesterday delivered 11 million
[1:58:29] gallons of water to the half
[1:58:30] million consumers that we serve
[1:58:36] on a maximum day that we have
[1:58:38] heard any data center throw
[1:58:40] around it's about4 million
[1:58:41] gallons
[1:58:46] so we're talking about a4% shift
[1:58:48] when we have the ability to
[1:58:52] treat 157 million gallons of
[1:58:55] water and we already have73
[1:58:58] million gallons of water sitting
[1:58:59] in tanks
[1:59:02] so our total water available
[1:59:04] based on our tanks were filled
[1:59:07] up the night before and we have
[1:59:08] treatment capacity during the
[1:59:12] day of the 157 is 225 million
[1:59:14] gallons of water that could be
[1:59:18] delivered and the data center
[1:59:18] may need4
[1:59:22] on a maximum day that is not
[1:59:23] what they're gonna need every
[1:59:24] day
[1:59:28] it's what they would need on a
[1:59:30] maximum day and then you even
[1:59:32] heard them talk today it depends
[1:59:36] on what type of cooling system
[1:59:37] they use we don't know that yet
[1:59:40] that hasn't been submitted to us
[1:59:41] to look at
[1:59:45] now I do want to state before I
[1:59:46] be quiet because I said it'd be
[1:59:48] brief as I've told you central
[1:59:49] Arkansas water numbers
[1:59:53] and I wanna be candid in that I
[1:59:54] can't speak for every water
[1:59:56] utility in the state and I know
[1:59:58] that hope is looking at one and
[2:00:00] Clarksville is looking at one
[2:00:02] and they're already building one
[2:00:04] in west memphis and I gave you
[2:00:05] our numbers
[2:00:08] hopepe's maximum water capacity
[2:00:10] is 9.6 million gallons a day
[2:00:14] if they're looking at a data
[2:00:17] center I have no idea what that
[2:00:20] impact is on their ability to
[2:00:21] provide water so when you get
[2:00:22] down to it and you're just
[2:00:24] talking about what can CAW
[2:00:25] deliver
[2:00:28] it's a different conversation
[2:00:30] maybe then what could be
[2:00:32] occurring in other parts of the
[2:00:34] state and you already heard West
[2:00:38] memphis earlier say they shifted
[2:00:41] to air cooled because of water
[2:00:42] demand and now they're looking
[2:00:44] at well maybe in the future
[2:00:46] we'll have additional water
[2:00:49] supply so this very much becomes
[2:00:51] a community by community
[2:00:54] analysis of what resources are
[2:00:55] available and is there
[2:00:58] s uff ic i ent water available
[2:00:58] to serve the potential demand.
[2:01:03] and with that I'll be quiet and
[2:01:04] they can either answer me
[2:01:05] questions or we can go over Mr
[2:01:08] Bohannon and I have to say one
[2:01:10] of my favorite answers that
[2:01:12] witnesses gave said well it
[2:01:14] depends and that's in effect
[2:01:16] what you said and I appreciate
[2:01:18] the fact I do have one very
[2:01:19] brief question I was
[2:01:21] at this moment you don't
[2:01:22] anticipate
[2:01:26] having to choose between a data
[2:01:29] center or any other economic
[2:01:30] development project and those
[2:01:32] consumers like me that just want
[2:01:34] our water to come on when I turn
[2:01:35] the faucet
[2:01:38] not only do we not anticipate
[2:01:40] having to make that choice on
[2:01:42] any given day as to who we're
[2:01:45] providing water with but we've
[2:01:46] we continue to make the
[2:01:48] commitment when the next project
[2:01:51] comes along we'll figure out a
[2:01:53] way to make sure that we have
[2:01:54] the water to be able to deliver
[2:01:55] it
[2:01:58] Arkansas is a water rich state
[2:02:00] water should never be the reason
[2:02:02] we deny economic development
[2:02:04] opportunities in the state.
[2:02:07] thank you sir and Mlock
[2:02:08] and Mr Bennefield I recognize
[2:02:11] y'all together and let you
[2:02:13] divide up however y'all want to
[2:02:15] present this thank you and good
[2:02:18] afternoon Chairman Mcairld on if
[2:02:19] I can hold just a moment
[2:02:20] Representativeladyyman was your
[2:02:21] question specifically for Mr.
[2:02:21] Bohannon
[2:02:24] if you'll let me
[2:02:27] holdpresentativeladyman does
[2:02:30] have a question for Mr Bohan
[2:02:31] thank you Mr Chairman and I'll
[2:02:33] be brief. Mr. Bohannon,
[2:02:34] thanks for your information you
[2:02:36] gave the capacity you got and
[2:02:38] percentage and so forth but what
[2:02:40] I what I think I heard you say
[2:02:44] is that we should treat data
[2:02:45] centers just like any other
[2:02:45] project
[2:02:48] look at what the parameters are
[2:02:50] look at what we have so it
[2:02:53] should be just another business
[2:02:56] or commercial or whatever that
[2:02:58] it just produces data instead
[2:02:59] of widgets
[2:02:59] is that true
[2:03:04] as as a water utility I believe
[2:03:06] that is what how we should treat
[2:03:10] them we are not in the business
[2:03:11] as a water utility of picking
[2:03:12] winners and losers that's who
[2:03:14] gets to come to a community and
[2:03:15] operate thank you thank you
[2:03:25] thank you. I'm sorry to that we
[2:03:26] jumped around like that Misslott
[2:03:29] but you go right ahead you good
[2:03:30] after good afternoon Chairman
[2:03:32] Mcair Johnson and committee
[2:03:34] members thank you for the
[2:03:35] opportunity to participate in
[2:03:38] today's discussion. My name is
[2:03:39] Jeanlock and I am the CEO of
[2:03:40] LittleRock Water Reclamation
[2:03:41] Authority.
[2:03:44] our utility is the largest sewer
[2:03:45] utility in the state of
[2:03:48] Arkansas. We collect and treat
[2:03:50] used water from LittleRock and
[2:03:51] the nearby municipalities
[2:03:53] ofcammack village, Alexandria
[2:03:56] and College Station serving a
[2:03:58] population of over 200,000
[2:04:00] people we have three water
[2:04:01] reclamation facilities and we
[2:04:03] returned36 million gallons of
[2:04:04] treated wastewater to the
[2:04:05] Arkansas River every day
[2:04:08] Joining me is our COO Ryan
[2:04:11] Benefield. Ryan has played a key
[2:04:12] role in evaluating the technical
[2:04:14] impacts of the proposed Google
[2:04:16] Dataenter project in the port of
[2:04:17] LittleRock to our sewer system.
[2:04:21] as conversations about data
[2:04:23] centers continue in Arkansas we
[2:04:24] welcome the chance to explain
[2:04:26] our utility's role and share
[2:04:27] what we know as a wastewater
[2:04:27] utility.
[2:04:30] it's important to note that
[2:04:33] every sewer utility is unique.
[2:04:35] Each system differs in its
[2:04:36] treatment processes and
[2:04:37] infrastructure capabilities
[2:04:40] and today my remarks will focus
[2:04:42] on google's proposed data center
[2:04:44] in the port of LittleRock and
[2:04:46] how it impacts our utility, our
[2:04:48] customers and the infrastructure
[2:04:50] we manage. We have not been
[2:04:52] involved with any other data
[2:04:54] center projects outside our
[2:04:56] service area including the avail
[2:04:57] or the proposed avo facility in
[2:04:58] Wrightsville.
[2:05:02] Our customer base includes
[2:05:03] residential neighborhoods
[2:05:05] hospitals small businesses and
[2:05:08] industries of varying sizes for
[2:05:10] decades we have communicated
[2:05:13] early and often with industries
[2:05:15] who are considering operations
[2:05:17] in LittleRock to ensure that
[2:05:18] they understand our requirements
[2:05:19] and capabilities
[2:05:22] when an industry approaches us
[2:05:24] about serving them we must first
[2:05:27] answer some key questions. can
[2:05:29] we safely treat their wastewater
[2:05:30] while preserving our biological
[2:05:33] treatment process. do we have
[2:05:34] enough capacity at our treatment
[2:05:37] plant? Will it impact our
[2:05:39] current customers and can we
[2:05:39] support future growth
[2:05:42] the answers to these questions
[2:05:44] and others inform whether we can
[2:05:46] serve the industry and continue
[2:05:48] to maintain our mission of
[2:05:49] protecting public health and the
[2:05:49] environment
[2:05:54] before making any decisions
[2:05:56] about the google Dataenter we
[2:05:58] considered these questions and
[2:06:00] to answer them we commissioned
[2:06:02] an independent third partyty
[2:06:04] study in 2024 which evaluated
[2:06:06] the wastewater, the data center
[2:06:08] would generate. I will note that
[2:06:10] Google covered all the costs of
[2:06:13] the study while LrWrA retained
[2:06:14] independent control of every
[2:06:15] aspect of it
[2:06:18] In2025 we received the results
[2:06:20] of the study which showed that
[2:06:22] our Fish Creek treatment plant
[2:06:24] can handle the data center
[2:06:26] wastewater without impacting our
[2:06:28] biological treatment process our
[2:06:30] plant operations existing
[2:06:31] customers or our environmental
[2:06:32] compliance
[2:06:35] regarding available treatment
[2:06:37] capacity our Fish Creek facility
[2:06:38] currently has about 8 million
[2:06:40] gallons per day of available
[2:06:43] capacity. Our analysis shows
[2:06:44] that we can handle the
[2:06:46] wastewater from the proposed
[2:06:48] data center continue to serve
[2:06:49] our current customers and still
[2:06:51] have plenty of room for future
[2:06:51] growth in the port.
[2:06:56] Cost is another important issue
[2:06:58] we understand that people worry
[2:06:59] that a project like this might
[2:07:02] impact utility rates for LrWRA
[2:07:03] the answer is no
[2:07:06] in the same way we required
[2:07:07] Google to pay for the initial
[2:07:09] study, we would require them or
[2:07:12] any industry to pay all costs
[2:07:13] associated with transporting and
[2:07:14] treating their wastewater
[2:07:16] including any special
[2:07:17] infrastructure needed for their
[2:07:17] project
[2:07:20] LrWRA customers will not pay
[2:07:22] these costs and the project will
[2:07:25] not increase sewer rates for cus
[2:07:25] residents or businesses.
[2:07:29] we know data centers have
[2:07:30] sparked a significant amount of
[2:07:32] public interest and there are
[2:07:33] still questions about
[2:07:34] infrastructure environmental
[2:07:35] impacts and long term growth.
[2:07:38] these are important topics and
[2:07:40] people deserve clear and honest
[2:07:42] answers. We are committed to
[2:07:44] sharing accurate information
[2:07:46] about the parts of the project
[2:07:46] that fall within our
[2:07:47] responsibility and expertise.
[2:07:50] at our utility our mission does
[2:07:51] not change from project to
[2:07:52] project
[2:07:55] we work to protect public health
[2:07:57] protect the environment, provide
[2:07:59] safe reliable wastewater service
[2:08:01] maintain reasonable rates and
[2:08:03] responsibly manage the public
[2:08:03] resources entrusted to us
[2:08:06] thank you for letting us share
[2:08:08] our perspective today. I am
[2:08:09] pleased to be part of the
[2:08:10] discussion and Ryan and I are
[2:08:11] happy to answer any questions
[2:08:12] you have.
[2:08:16] thank you Misslock. I do not
[2:08:18] have any questions in the queue
[2:08:20] but if anybody oh I'm sorry
[2:08:23] y'all jumped in fast senator
[2:08:24] Mcee you're recognized thank you
[2:08:26] Mr. Chairman and thank you all
[2:08:27] for being here today. I
[2:08:28] appreciate your patience and
[2:08:30] letting us get around to you
[2:08:32] and coming to talk to us about
[2:08:33] the the experiences that you've
[2:08:34] had
[2:08:37] so what what I hear you saying
[2:08:39] is that when a developer comes
[2:08:42] to you the details of their
[2:08:43] operation are extremely
[2:08:43] important.
[2:08:44] that's if they're not
[2:08:46] forthcoming with those details
[2:08:47] you probably aren't going to do
[2:08:47] business
[2:08:49] and if you don't have the
[2:08:50] resources to support that
[2:08:52] industry you they're probably
[2:08:53] gonna need to find another
[2:08:53] location
[2:08:56] would you agree with those
[2:08:58] things? Yes sir as it relates to
[2:08:59] littlettleRock waterter
[2:09:01] Reclamation Authority very good
[2:09:01] thank you for coming today
[2:09:06] thank you senator Representative
[2:09:08] ladyman, I think you're going to
[2:09:09] have the last word. Thank you Mr
[2:09:10] Chairman and thank you all for
[2:09:12] being here and I I liked your
[2:09:14] presentation very much. so
[2:09:15] what what you said was
[2:09:19] you look at the what you're
[2:09:19] concerned about is the
[2:09:22] biological or chemical load that
[2:09:24] is in that water that you're
[2:09:24] gonna have to provide you're
[2:09:25] gonna have to treat
[2:09:28] in the process I suppose would
[2:09:30] be what's the data center or
[2:09:32] whatever it is this customer
[2:09:34] would have to come to you and
[2:09:36] ask for a permit and you would
[2:09:37] ask them questions about why
[2:09:38] does your ph load, what is your
[2:09:40] biological load, what's your
[2:09:42] metal load? doesn't matter who
[2:09:44] that customer is. everybody
[2:09:46] follows the same process and you
[2:09:48] know what your capacity is what
[2:09:49] you're capable you're how much
[2:09:50] volume you can change ph you
[2:09:52] know how much that is and you
[2:09:54] look at that just as Mr Bohan
[2:09:55] talked about you know
[2:09:58] what your capacity is and if you
[2:10:00] can serve that customer then it
[2:10:02] benefits the community you're
[2:10:03] all in if you can't you tell
[2:10:04] them you can't yes sir that's
[2:10:05] correct right thank you very
[2:10:06] much
[2:10:10] thank you Representativeladyman
[2:10:11] and and Senator Penzo did slip
[2:10:12] in there at the end so you don't
[2:10:14] get the last word he does
[2:10:15] senator penzo
[2:10:17] and then I'll come back to you
[2:10:18] senator hickey thank you Mr
[2:10:20] Chair. and actually have a
[2:10:24] question for Mr. Bohannon.
[2:10:25] and I'm sorry it didn't really
[2:10:26] pertain to data centers but
[2:10:28] was was it your water
[2:10:30] district that was running out of
[2:10:32] fluoride? Did I see an article
[2:10:36] is ok we have fluoride now it's
[2:10:37] in the water again Oh so you you
[2:10:38] have replaced the where where
[2:10:40] did you source that from? Our
[2:10:42] our regular supplier got a
[2:10:44] shipment to us and they unloaded
[2:10:45] a half a trailer yesterday
[2:10:48] everybody was sending me that
[2:10:51] article over the last yeah
[2:10:52] here recently so I just wanted
[2:10:54] to check. thank you no problem
[2:10:55] thank you one more question if
[2:10:56] you don't mind.
[2:10:58] how much how much a year do
[2:10:59] y'all spend in fluoride
[2:11:02] on florida acquisitions? I
[2:11:04] should have been better prepared
[2:11:05] for that question knowing how
[2:11:06] much it's been in the news. I
[2:11:08] will tell you this that we're
[2:11:09] working on our budget and
[2:11:12] they've told me it's a300% rate
[2:11:14] increase for 27 I mean Mr
[2:11:17] Bohannon if you will provide me
[2:11:18] with that information I will
[2:11:20] make sure that Senator Penzo
[2:11:21] gets it you yes sir
[2:11:24] I want to thank everybody for
[2:11:25] coming
[2:11:26] huh
[2:11:30] senator hickey I'm I'll come to
[2:11:31] you in a moment also
[2:11:40] Doctor Lane I didn't forget
[2:11:41] about you we're trying to
[2:11:43] shuffle. you will be invited to
[2:11:46] this October hearing and we'll
[2:11:47] try to do that I apologize I
[2:11:48] thought I could slip you in here
[2:11:50] but if you'll bear with us we'll
[2:11:51] we'll take care of that Senator
[2:11:51] hickey you're recognized
[2:11:56] yes just Mr Chair this is the
[2:11:57] thing I've asked the question
[2:11:58] whenever we come back next month
[2:12:00] of the psC that I would like
[2:12:01] them to do their own
[2:12:01] calculations
[2:12:05] of how it's more beneficial that
[2:12:09] that they thatgy spread that out
[2:12:10] or if it would have been more
[2:12:12] beneficial that it was taken
[2:12:14] immediately you know so it
[2:12:14] wouldn't have went into the
[2:12:15] writer
[2:12:16] so this is my thing
[2:12:21] I want to make 100% sure that
[2:12:23] somebody doesn't say well they
[2:12:25] cannot give this information out
[2:12:26] or you know we're bound by this
[2:12:27] or that
[2:12:30] and so I don't know if we need
[2:12:31] to get our attorneys involved
[2:12:33] and to try to work with entergy
[2:12:34] and also work with the PSC.
[2:12:38] and maybe the if entergy says
[2:12:40] well they're not supposed to do
[2:12:41] that but if they give their OKok
[2:12:44] maybe maybe the PSC can do it so
[2:12:46] the thing is is I just don't
[2:12:47] want to sit here for the next
[2:12:48] month and then all of a sudden
[2:12:50] somebody says oh no that's
[2:12:50] confidential information.
[2:12:52] there's proprietary information
[2:12:54] this and that. I don't care if
[2:12:56] they redact some of that stuff
[2:12:58] out and we get the the cost
[2:12:59] although I prefer to have it all
[2:13:00] but I just want to kind of head
[2:13:02] that off at the past if we could
[2:13:04] Mr chairir and just go one
[2:13:05] step further to make sure we get
[2:13:05] that information
[2:13:08] Senator hickey it sounds like
[2:13:10] you are trying to lay out some
[2:13:11] reasonable ground rules before
[2:13:13] we come back and look at this
[2:13:16] and I certainly concur with
[2:13:16] everything you just said
[2:13:20] because so much of this
[2:13:21] information that we've seen in
[2:13:24] the newspaper is literally it's
[2:13:26] part of it even today I think
[2:13:27] this will give us a little time
[2:13:30] to digest this ask them those
[2:13:32] questions we might not like the
[2:13:34] format that they want to do but
[2:13:37] that we can at least get an
[2:13:38] agreement of how we're going to
[2:13:41] proceed because we're again the
[2:13:43] whole idea of splitting this up
[2:13:44] was not so we could come back
[2:13:46] next month so we could get the
[2:13:47] real answers that we need so I
[2:13:50] appreciate that and certainly
[2:13:52] if we see things that their
[2:13:54] interpretation is not what we
[2:13:56] thought it was last year then we
[2:13:58] can look in January about maybe
[2:14:00] changing the law on that but
[2:14:01] let ma'am chair so
[2:14:03] so let me ask you this are
[2:14:06] before the next meeting through
[2:14:08] the chairs or the chairs going
[2:14:10] to attempt to to work that out
[2:14:11] among both parties to make sure
[2:14:14] that they that the PSC can do
[2:14:15] that information with with your
[2:14:17] guidance I will speak to
[2:14:19] co-chair shepherd and we will
[2:14:21] try to accomplish that so we're
[2:14:22] we're all on the same page when
[2:14:24] we show up inoctober and and and
[2:14:26] maybe they legally can't do it
[2:14:27] and if that's the way it is
[2:14:28] that's the way it'll be but if
[2:14:30] that's their position we'll have
[2:14:32] to deal with that but if it's as
[2:14:33] simple asgy saying no it's ok to
[2:14:33] release
[2:14:36] it then you know I'd want us to
[2:14:38] go to go down that path also.
[2:14:40] well you're asking the right
[2:14:41] questions and when we get those
[2:14:42] answers we can decide the best
[2:14:44] way to proceed thank you sir
[2:14:48] thank yousenator hickey I see
[2:14:49] no one else in the queue thank
[2:14:51] you all for coming and there's
[2:14:52] nothing else we are adjourned