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HB 1813

TO ADOPT THE FAIR AND EFFICIENT TRANSMISSION COMPACT.

2025 Regular Session Introduced by Zack Gramlich and 1 co-sponsor

House Bill 1813 establishes an interstate compact to lower electricity costs, enhance transmission infrastructure, and boost economic growth in the mid-South region.

Recommended for study in the Interim by the Committee on
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Bill Summary · HB 1813

Summary of House Bill 1813: Fair and Efficient Transmission Compact

Bill Number: HB 1813
Introduced On: March 17, 2025
Status: Recommended for study in the Interim by the Committee on Insurance & Commerce
Primary Sponsors: Representative Gramlich, Senator M. Johnson

Purpose and Intent

House Bill 1813 aims to adopt the Fair and Efficient Transmission Compact, an interstate agreement designed to enhance the construction and expansion of high-voltage transmission infrastructure in the mid-South region of the United States. The primary goals of the Compact are to:

  • Lower construction costs for new transmission infrastructure.
  • Facilitate the expansion of transmission capacity through effective planning and construction.
  • Attract infrastructure investments to support economic growth and energy reliability.

Key Provisions

1. Establishment of the Compact

  • The Compact is enacted into law and allows Arkansas to join with Louisiana, Mississippi, and Texas.
  • It emphasizes the need for cooperative action among states to modernize and expand transmission assets.

2. Council Creation

  • A Fair and Efficient Transmission Council will be established to administer the Compact.
  • The Council will consist of representatives from each participating state, appointed by their respective governors and legislative bodies.

3. Open Bidding Process

  • The Compact promotes a competitive bidding process for the design, construction, and ownership of new transmission projects, aiming to benefit electric ratepayers.

4. Long Range Transmission Planning

  • The Compact outlines a structured approach to long-range planning for transmission systems to meet economic development needs and enhance grid reliability.

5. Grid-Enhancing Technologies (GETs)

  • The Compact encourages the use of advanced technologies to maximize the efficiency of existing and future transmission systems.

Impact

Who Would Be Affected?

  • Consumers and Businesses: The Compact aims to lower electricity costs and improve reliability, benefiting consumers and businesses in the participating states.
  • State Governments: Participating states will need to collaborate on regulatory frameworks and policies to support the Compact's objectives.
  • Energy Sector: Utilities and energy companies will have opportunities for competitive bidding and investment in new infrastructure.

Economic Benefits

  • The Compact is expected to stimulate job creation and local revenues by facilitating the development of energy infrastructure in areas with high demand for electricity.

Procedural Timeline

  • March 17, 2025: Bill filed and referred to the Committee on Insurance & Commerce.
  • March 20, 2025: The bill was read and amendments were adopted.
  • April 10, 2025: Further amendments were made, and the bill was reported correctly engrossed.
  • April 14, 2025: The bill was withdrawn by the author.
  • April 16, 2025: Recommended for study in the Interim by the Committee.

Conclusion

House Bill 1813 represents a significant step towards modernizing the energy transmission infrastructure in the mid-South region. By adopting the Fair and Efficient Transmission Compact, Arkansas aims to enhance its energy reliability, reduce costs, and foster economic growth through improved collaboration with neighboring states.

Compiled from official sources — confirm details with the bill’s official record.

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