NEWARK — State regulators have approved a $2.6 billion plan to build a 1,499-megawatt natural gas-fired power plant in Newark, clearing the way for a major transition in electricity supply for roughly 1.3 million Arkansans.
The Arkansas Public Service Commission approved the project, known as IGP 3-6, in a filing on Monday, according to the Arkansas Democrat-Gazette. The facility will provide wholesale power to Arkansas Electric Cooperatives Corp., which serves 17 distribution cooperatives across 74 of the state’s 75 counties.
Construction is expected to be completed by the end of 2030. The plant will be built adjacent to the existing coal-fired Independence Power Plant, allowing AECC to use its established electrical interconnection rights. The Independence facility is required to close by the end of 2030 under a 2018 lawsuit settlement.
AECC’s estimated share of the project cost is approximately $1.96 billion. Municipal utilities in Conway, West Memphis and Jonesboro will cover the remaining balance as co-owners.
Average residential cooperative customers could see monthly bills increase by an estimated $6.65, though AECC noted in regulatory filings that the exact impact is difficult to determine because individual distribution cooperatives set their own retail rates. The utility is not seeking an immediate rate rider and instead plans to incorporate construction expenses into future rate structures. Officials said initial estimates do not account for potential broader energy market benefits that could help offset costs.
The commission has set the $2.6 billion figure as a firm benchmark. AECC must promptly notify regulators and justify any cost overruns if the project exceeds the approved budget.
The project addresses the anticipated loss of baseload generation from the retiring Independence coal plant. AECC has described the new facility as essential to maintaining reliable power for its members.
The plant will be located in Independence County, which is already home to significant power infrastructure.
