State Competitiveness: Arkansas

Arkansas has at least one approved utility green tariff program. Among the state’s five largest utilities by commercial and industrial (C&I) electricity sales, those offering green tariffs account for about 65% of total C&I sales within this top-five group, indicating substantial access for large customers.

Arkansas permits municipal ownership of utilities statewide, subject to certain requirements.

Arkansas has a state consumer advocate office that represents ratepayers.

Arkansas has a requirement for single-source competitive procurement. While state policy does not encourage or require all-source procurement solicitations, about 98% of the state’s customers are in a wholesale market.

Arkansas nearly fully participates in two wholesale markets, Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP). MISO covers about 78% of the state’s customers and SPP covers about 20% of the state’s electricity customers.

Arkansas nearly fully participates in two wholesale markets (MISO and SPP), with open membership available to customers in MISO (about 78% of the state’s customers) and limited voting participation available in SPP (about 20% of the state’s electricity customers), a strong-level of civil society participation opportunity.

Arkansas limits PPAs to tax-exempt entities.

Civil Society Participation Role in Wholesale Market: Arkansas nearly fully participates in two wholesale markets (MISO and SPP), with delegated state authority available in both MISO (about 78% of the state’s customers) and SPP (about 20% of the state’s electricity customers), a moderate-level of wholesale market state authority.

Arkansas ended 1:1 net metering in September 2024; limited utility crediting remains. No defined aggregate capacity limit.

Arkansas does not permit residential electricity customers retail provider choice.

Arkansas does not permit commercial electricity customers retail provider choice.

Arkansas’s electric utility sector, including distribution utilities, is highly concentrated. The state has a customer concentration (HHI) score of 1,933, which exceeds the 1,800 threshold that signals a highly concentrated market. This indicates that a small number of utilities serve most customers in the state, suggesting limited competition.

Electricity generation in Arkansas is provided by a small number of power producers. The state has a generation concentration (HHI) score of 3,115, which exceeds the 1,800 threshold that signals a highly concentrated market, indicating that electricity production is controlled by a small number of entities, suggesting limited competition.

Arkansas does not have a state policy allowing for CCA.

Arkansas does not have statewide interconnection standard, rather guideline with a standard application for net metered systems, with size limits of 5MW for non-residential systems and 25 kW for residential systems.