Being an energy and utilities provider is not for the faint hearted.
To start with, many power grids operate on aging infrastructure, a problem that brings with it heavy costs in funds, materials and time. That aging, in turn, makes power grids more susceptible to power outages, especially when severe weather strikes. Then there is America’s unquenchable appetite for technology, which creates a higher demand for electricity and often results in unwelcome price hikes.
It is no surprise that Laura Landreaux, president and CEO at Entergy Arkansas, works with a full plate on a daily basis. When she is not figuring out how to meet ever-growing demand, she is working with policymakers at the state and local levels to ensure customers have access to affordable utilities.
Laura Landreaux
It is a never-ending list, and it rarely comes with a “thank you.”
“One of the biggest challenges utility companies are facing is power demand increasing at a rate substantially higher than it has in decades,” Landreaux said. “Arkansas, like many other states, is experiencing major growth among multiple existing industries and is currently attracting the interest of several large-scale economic development projects that would bring new jobs and substantial investment in all areas of the state.”
Everyone likes to hear about economic growth and development, but not everybody understands what comes with it. For every new company that arrives in Arkansas come commercial facilities that need dependable electrical power. For every part of the state with a growing population come new homes and new developments that expect energy at the flick of a switch.
Not everything grows at the same time, however. Todd Jacobs, executive vice president and chief operating officer at Summit Utilities, is one of those people tasked with making it all fit. Rarely is it easy.
Todd Jacobs
“Utility companies like Summit are facing the pressing challenge of modernizing aging infrastructure to ensure continuing safety and reliability,” Jacobs said. “Much of the existing pipeline network was constructed years ago and is now reaching the end of its intended service life.”
Juggling all those factors and readily answering to consumer demand is difficult even under the most predictable of conditions, but ask any Arkansan, and they will probably say conditions are hardly predictable.
“Another challenge the industry is facing is the increased risk of severe weather,” Landreaux said. “Today’s need for continuous connectivity and highly reliable electricity has made electric service essential to how we live and work.”
While most people understand there is little that can be done about the weather, that does not mean everyone can afford to sit patiently when storms knock out their power. That is why a good portion of Entergy Arkansas’ efforts involve making an aging infrastructure more weather tolerant.
“Our existing customers need this investment to manage their lives and businesses every day, even in the face of storms,” Landreaux said. “Meanwhile, new customers need assurances that the grid can meet their expectations before they invest in the region.”
Arkansas’ utility companies are opening their wallets to meet the challenge.
“Summit has invested more than $300 million into our system since acquiring operations in 2022,” Jacobs said, “These investments are focused on replacing aging pipelines, enhancing system safety and strengthening reliability for more than 400,000 customers across Arkansas. This work is critical to meeting today’s needs while preparing our infrastructure for the future.”
It will take more than money to create refurbished, sturdier infrastructure. Though it may not seem that way, providing energy utilities is a people business. When most consumers think about who staffs utilities, they think about linemen who work during power outages or customer service representatives who handle billing questions.
Those positions are vital, but a whole lot more goes into creating and maintaining a reliable energy system for customers. That is why utility companies have started making a public push to attract employees at all levels and all areas of expertise.
Entergy Arkansas, for example, has made its presence known in the state’s high schools and two-year colleges. Part of the pitch, Landreaux said, is educating students on the wide variety of jobs available with utility companies. Along with lineman training, Entergy Arkansas offers tracks in cybersecurity, engineering and even radiation safety at Russellville’s Nuclear One facility.
“We are actively engaged in recruitment, training and planning across numerous areas of workforce development for our company, for our customers and for the communities we serve,” Landreaux said, noting Entergy’s support of the Academies of Central Arkansas and partnerships with area chambers and local high schools such as Joe T. Robinson High School in Little Rock and Little Rock West High School of Innovation. “Our engagements with the schools give students from grades nine through 12 early exposure to a wide range of careers in the energy industry.”
Some of those jobs involve making appearances at the state capitol. Part of the challenge facing energy providers these days is working to promote legislation that will create growth in the utility sector. The state legislature recently passed Act 373, better known as the Generating Arkansas Jobs Act, to help spark utility infrastructure upgrades such as new generation facilities, as well as updates to both electric and natural gas resources.
“As energy demand continues to increase, Arkansas is actively enhancing its utility infrastructure,” Jacobs said. “Act 373 enables strategic investments in both natural gas and electric systems, ensuring the state can reliably meet the future energy needs and support economic development.”
What does that mean for the regular consumer? Simply put, utility companies will be able to beef up their offerings without kicking the cost down to their customers.
“The legislation supports the effort of the state’s utilities, including Entergy Arkansas, to meet their customers’ future power needs and do it without unnecessary costs added to customer bills,” Landreaux said. “Act 373 puts Arkansas at a competitive advantage for attracting economic development in this state by ensuring both speed to market and low-cost generation for companies seeking to locate in our state over the next several years.”
Jacobs calls Act 373 a catalyst “for long-term, forward-looking upgrades that enhance system capacity, reliability and resilience.”
What that boils down to is that not only will existing customers benefit from more reliable power, but companies looking to move to Arkansas will have the promise of a refurbished, updated power grid.
Part of those updates will include the type of power businesses and residents use. Just as it is with so many industries, sustainability has become a mandate, offering a peek into a future with cleaner, more reliable energy sources.
“Over the past decade, natural gas has become a cornerstone of America’s energy strategy by delivering safe and reliable energy while supporting energy independence and industrial growth,” Jacobs said. “Renewable natural gas is expanding the role of natural gas in an innovative energy future, capturing methane from farms and landfills to create homegrown natural gas. As the U.S. continues on its path to energy dominance, natural gas will remain a strategic asset, supporting reliability, affordability and innovation throughout the energy system.”
For Arkansans, the energy of the future is here today. New facilities are sprouting up and multiple energy sources are being developed. What was once a one-trick industry has evolved into myriad options for all consumers looking to meet their ever-growing energy needs.
“Entergy Arkansas not only seeks higher overall power capacity but also an ‘all-of-the-above’ generation strategy that maintains our focus on using a variety of fuel sources to ensure customers are not overly dependent on the potential cost fluctuations of just one resource,” Landreaux said. “In addition, the plan calls for additional transmission lines to be built in the state to help ensure power can be routed to high-growth areas to improve reliability.”
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