AR SB689

Amends the Municipal Electric System Financing Act to authorize municipal electric utilities to issue bonds to finance costs associated with severe storms and storm recovery, addressing a gap in existing law that only applies to certain public utilities.

Defines "storm" to include named tropical storms, hurricanes, tornadoes, ice storms, snow storms, floods, earthquakes, and other significant weather events or natural disasters.

Expands definition of "storm recovery costs" to include increased operating costs, capital costs, natural gas costs, fuel costs, power costs, and costs to fund or replenish storm recovery reserves.

Requires municipalities issuing storm recovery bonds to first obtain authorization from the Arkansas Public Service Commission (either through a previous financing order for the same storm or by requesting an emergency declaration) and to take reasonable steps to mitigate financial impact on customers.

Declares an emergency effective immediately upon governor approval due to recent winter storms and the necessity for prompt authorization to enable securitized financing that could lower costs and mitigate rate impacts for municipal electric utility customers.