By Roby Brock
The Arkansas Public Service Commission opened its “show cause” hearing aimed at studying Entergy Arkansas’ effort to withdraw from its parent company’s system agreement.
PSC Chairman Paul Suskie explained that the goal of the hearing was to “explore and determine the most prudent course of action for Entergy Arkansas and its customers” throughout the separation process.
Suskie questioned Entergy Arkansas President Hugh McDonald for hours with a variety of inquiries focused on how “independent” local decisions are made apart from parent company decisions.
Entergy forecasts lower electric rates in Arkansas
Entergy Arkansas officials said they expect overall residential customer electricity rates to decrease over 10 percent in 2010 even with a requested increase in base rates.
Lower system fuel costs and a “sizable reduction” in a federal regulator payment were cited for the expected drop in residential rates.
Entergy Arkansas predicted that residential customer bills will still be around $10 a month lower in July when new base rates, if approved, would go into effect. Entergy has asked for a $223 million increase in its rates, the first request for a base rate increase in 25 years.
Verizon pumps $56 million into Arkansas in 2009
Verizon Wireless, which acquired Alltel last year, said it invested $56 million in Arkansas during 2009 to improve its cellular network.
The investment includes adding new cell sites and network upgrades, deploying cells on light trucks to handle increased call volume during high traffic community and university events, as well as other projects to expand services and coverage for wireless customers in Arkansas.
Verizon said it added or expanded more than 60 cell sites in metropolitan and rural areas throughout the state in 2009.
State unemployment remains unchanged
The Arkansas Department of Workforce Services said that state unemployment remained unchanged at 7.6 percent in January 2010. One year ago, the state’s unemployment rate was 6.5 percent.
The state revised its December 2009 jobless rate from 7.7 percent to 7.6 percent.
The January U.S. unemployment rate declined from 10 percent in December to 9.7 percent.
Pace Industries buys zinc casting business
Aluminum die casting company Pace Industries has acquired the zinc die casting division of Del Mar Industries for an undisclosed sum. Fayetteville-based Pace said the acquisition was effective immediately.
Del Mar, which is based in Gardena, Calif., is a 65-year old company. Pace has zinc die operations in Harrison, as well as St. Paul, Minn., and North Billerica, Mass.
Construction begins on $1.25 billion gas pipeline
Construction has begun on the Fayetteville Express Pipeline, a $1.25 billion, 185-mile natural gas pipeline that will serve the Fayetteville Shale region in Arkansas.
The 42-inch pipeline will originate in Conway County, travel through White County, and terminate at an interconnection in Panola County Mississippi.
The project is a 50-50 joint venture between Energy Transfer Partners and Kinder Morgan Energy Partners. When the pipeline is in service in late 2010, it will have initial capacity to transport 2 billion cubic feet of natural gas per day.
Oaklawn EGS wagers more than double
According to the latest report from the Arkansas Racing Commission, Oaklawn saw its electronic games of skill (EGS) wagers top $38.9 million in February compared to $19.1 million one year ago. That’s a 101 percent annual increase.
Payouts at the Hot Springs racetrack and gambling center totaled $36.7 million in February.
Southland’s racino in West Memphis pulled in more money, but saw a smaller — but substantial — percentage increase in EGS wagers.
Southland’s EGS wagers in February topped $53.8 million compared to $37.6 million one year ago, a 43 percent increase. Payouts at Southland totaled $51 million for the month.
Lincoln touts emergency money for poultry producers
Senator Blanche Lincoln flexed her Agriculture committee chairman’s muscle touting $75 million in emergency loans for poultry producers.
Lincoln said the Senate approved aid to poultry producers as part of a disaster relief package included in the American Workers, State and Business Relief Act.
“Arkansas’s poultry industry and our state’s poultry producers are hurting. The nation’s economic downturn and the Pilgrim’s Pride bankruptcy have left these hard-working men and women facing dire economic circumstances,” Lincoln said.
Pilgrim’s Pride processing facilities in El Dorado and Clinton, along with a feed mill in Atkins, have all closed during the current recession.
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Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net.
