AR SB463

Public utilities must file an application with the Arkansas Public Service Commission before entering any settlement agreement with the U.S. Government, federal agencies, or third parties that would close, deactivate, or decommission electric generation units or transmission assets in Arkansas

The Commission must request testimony from the Attorney General's Office, including the Consumer Utilities Rate Advocacy Division, and other state agencies to evaluate the settlement agreement's compliance and underlying legal issues

Approval requires clear and convincing evidence that: legal claims are based on reasonable interpretation of existing law, the agreement doesn't commit utilities to actions exceeding regulations at consumer cost (including actions driven by shareholder, environmental, or sustainability goals rather than law), and the utility's decision is reasonable and prudent

Utilities must provide contemporaneous documentation supporting prudent decision-making, or alternatively obtain an independent retrospective analysis demonstrating reasonableness

The law does not apply to any settlement, consent decree, or litigation resolution executed or ordered before the act's effective date of April 14, 2025