Entergy promised transparency on Google's $600 million Arkansas deal, then filed it blacked out
Entergy's release promised transparency and its filing delivered black ink: the amended Google contract asks regulators to waive disclosure of the payments, rates and termination fee behind a $2.1 billion savings claim, while Arkansas legislators revolt over the financing law in the same week.
Vincent Jiang · 3 min read
The press release came first. On October 19 Entergy+1.16% — Entergy, up 1.16 percent today Arkansas announced that Google would fund roughly $600 million of batteries, solar and transmission for its expanding West Memphis data center, that the new resources would not touch the Generating Arkansas Jobs Act rider, and that the filing would follow the commission's transparency recommendations 45.
A day later the amended application landed at the Arkansas Public Service Commission with the numbers blacked out: how much Google pays toward the $389.4 million Driver battery and the $161.2 million Jones Mill battery, its transmission contribution, the ratemaking math, even the termination fee if the deal dies 1. Entergy asked regulators to waive disclosure requirements the commission itself set in a January order, saying Google−1.59% — Google, down 1.59 percent today deems the amounts competitively sensitive 1.
The only numbers on record came from earlier filings Entergy had blacked out
Newly unsealed filings show Google paying Entergy Arkansas $103 million this year, part of an agreement valued at $443 million through 2029 3. The savings case rests on Fair Share Plus, Entergy's pledge that Google-funded resources return savings to other customers: a phase-one pledge of $1.6 billion, now joined by a claim of $2.1 billion in net benefits for 738,000 customers and at least $500 million in new savings from 2028 over 20 years 45.
Google funds a $600 million build; Entergy claims $2.1 billion in customer benefits
- Estimate
Data
| Value | |
|---|---|
| Google-funded build | 600 |
| Agreement thru 2029 | 443 |
| New savings claim (estimate) | 500 |
| Net benefits claim (estimate) | 2,100 |
Google's maximum power demand rises from 600 megawatts by an undisclosed amount 1. One dated number cuts against the marketing: Cypress Solar, a plant built at Google's behest, moves off the rider into customers' base rates when it comes online in late 2028 1.
Farmers told legislators the rider is costing them five figures
At a October 19 legislative hearing, farmers testified that the rider, which added an average $5.77 a month per 1,000 kilowatt-hours from June, was eating their income 2. Lori Caveness, a Carlisle farmer with many separate accounts for wells, bins and worker housing, saw one bill rise $3,000 and summed her accounts to $25,000 2. Cory Skarda, a third-generation farmer from Des Arc, estimated $35,000 to $40,000 a year, more than he took home last year 2.
Two Arkansas farms put the rider's annual cost at $25,000 and $35,000-$40,000
- Estimate
Data
| Value | Range | |
|---|---|---|
| Caveness, one bill | 3,000 | — |
| Caveness, summed (estimate) | 25,000 | — |
| Skarda, estimated (estimate) | 40,000 | 35,000–40,000 |
At that same hearing, Walmart−0.12% — Walmart, down 0.12 percent today energy executive Steve Chriss agreed with the committee co-chair's Walmart analogy: "We don't precharge customers." Sen. Mark Johnson, the Republican co-chair who called the law a shift of risk from Entergy's investors to ratepayers, had made that criticism at a recent energy conference, not that hearing. Sen. Jimmy Hickey apologized for voting for the bill, calling it horrible 2.
Investors reprice the risk while the commission sits on the filing
Investors are repricing the same question. Morgan Stanley+2.76% — Morgan Stanley, up 2.76 percent today cut its Entergy target to $101 from $98 on October 21 6. The stock closed at $105.16, up 13.8% this year, on a load-pays thesis now under review in Little Rock 6. The commission rules next; Entergy reports Q3 on November 2 6.
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