Dive Brief:
- Arkansas Governor-elect Asa Hutchinson (R) will likely name two commissioners to serve on the Public Service Commission during his term, as one member of the three-seat commission has a term expiring in 2015 and the other could be confirmed to a federal post.
- PSC Chairman Colette Honorable has been nominated by President Obama to serve on the Federal Energy Regulatory Commission. Honorable's confirmation appears to have backing from both sides of the aisle in Congress, meaning her seat on the PSC will likely open soon.
- The changes could mean a more favorable commission for utilities looking to expand their revenues and programs in the state, E&E Publishing reports. Both Entergy and AEP are eyeing rate increases in Arkansas to boost stagnant returns and have seen proposals rejected there in the past.
Dive Insight:
Hutchinson, a Republican, defeated former Rep. Mike Ross (D) in November and will take over the state's top position in January. While Honorable may be heading to the federal stage, Commissioner Olan Reeves was appointed by Beebe to a six-year term that runs out in January.
Those changes could mean a more friendly commission as Entergy and AEP look to improve their returns in Arkansas, which for both companies lag behind earnings in other states.
Entergy has signaled it will file a rate case in the first half of 2015, and at a conference in November the company was discussing the "new political landscape" in the state. Plans to improve returns include a push to "engage with regulators on shared values and objectives," Entergy said.
At FERC, Honorable, a Democrat, appears to have an easy path to confirmation. "It's clear that you have seasoned experience that I believe will be an asset at FERC," Alaska Sen. Lisa Murkowski (R), said at a Dec. 4 hearing.