Arkansas G&T’s $1B Gas Investment: Building Equity and Reliability
Arkansas Electric Cooperative Corp. (AECC) is making a significant move with a $1 billion investment in natural gas generation, aiming to ensure cost-effective energy reliability and future equity for its 17 distribution-member cooperatives. This expansive initiative includes the development of over 1,000 megawatts of new natural gas capacity, positioning AECC at the forefront of energy solutions in the region.
Strategic Expansion: Naples, Texas, and Ozark, Arkansas
Breaking ground in 2026, AECC has secured a 100-acre site near Naples, Texas, for its most ambitious project yet—an $850 million, 900-megawatt gas plant. This facility marks the cooperative’s first venture outside of Arkansas and is set to become its largest generating asset. With proximity to existing pipelines and electricity transmission, this two-turbine, simple-cycle plant is strategically designed to commence operations in the Southwest Power Pool’s market by November 2028.
Meanwhile, in Ozark, Arkansas, AECC is investing $93 million to expand the Thomas B. Fitzhugh Generating Station’s capacity from 170 to 270 megawatts. This move addresses an anticipated capacity shortage within the Southwest Power Pool for 2025 and 2026, with construction efforts already underway since September 2023.
Ensuring Long-term Reliability and Cost Efficiency
AECC underscores that these investments are critical to securing long-term energy reliability and affordable costs for its members—core values that have driven the cooperative’s operations. “Making these investments ensures reliability for our members, and it ensures low costs for our members for the long term, not just a few months or a few years,” said Jonathan Oliver, AECC’s chief operations officer. “We are building equity for our members that will pay returns over time.”
The projects also align with a broader strategy to accommodate the region’s annual load growth of 1.5% to 2% and the impending retirement of 1,200 megawatts of coal capacity by 2030. Natural gas stands out as a reliable, stable-priced resource, offering full accreditation in the power pool to meet rising market capacity demands.
Diversifying with Solar Energy
In parallel with its natural gas projects, AECC is also enhancing its solar energy portfolio. The cooperative’s 122-megawatt Woodruff County Solar Project recently began operations, showcasing AECC’s commitment to diversifying energy resources. Leveraging existing interconnection facilities from the retired Carl Bailey Generation Station, this solar project bolsters AECC’s array of approximately 4,300 megawatts across gas, coal, hydro, wind, and solar resources.
Community Impact: What It Means for Residents
For residents of Arkansas and neighboring communities, AECC’s substantial investment promises not only energy reliability but also economic benefits. New jobs associated with construction and operation phases, along with stable energy costs, offer a positive outlook for both local economies and household budgets.
Local resident Mary Jacobs expressed optimism about the investment’s potential. “As a member of the cooperative, it’s reassuring to see such strategic planning for our future energy needs. Knowing that jobs are coming to the area and that we will have reliable, affordable energy gives us peace of mind,” she said.
Previous Challenges and Future Prospects
In previous years, AECC and the broader region faced similar energy capacity challenges, prompting efforts toward sustainable and reliable energy solutions. This new investment could serve as a model for other energy cooperatives looking to balance traditional energy sources with emerging technologies.
Looking to the future, these projects set the stage for AECC to effectively navigate transitions within the energy sector, including potential regulatory changes and environmental considerations. While some community members may express concerns about dependence on natural gas, the cooperative’s efforts to expand solar energy highlight a balanced approach to managing its environmental footprint.
Resources and Engagement Opportunities
To keep community members informed and involved, AECC plans to organize public forums and provide detailed project updates. These engagements are designed to offer transparency, address resident concerns, and gather valuable feedback to continuously align projects with community interest and needs.
In conclusion, with its substantial investment in natural gas and solar energy, AECC is actively building a robust energy future for its members and wider community. As energy demands evolve, AECC’s strategic expansion emphasizes its commitment to maintaining reliability, cost-efficiency, and sustainable returns, ensuring that it remains a cornerstone of energy stability and economic progress in the region.
