Ozarks Electric, Ozarks Go seek PILOT abatement for $200–$300 million transmission rebuild, says company will reinvest savings

Representatives of Ozarks Electric Cooperative and its broadband subsidiary Ozarks Go asked the Washington County Finance and Budget Committee to consider a payment‑in‑lieu‑of‑taxes (PILOT) agreement that would allow the utilities to accelerate construction of major transmission upgrades, expand certain fiber projects, and build a Springdale crew office.

Michael Shaffer, identified as director of business strategy, and Chris Holloway, general manager of Ozarks Go, described several large, county‑focused projects the cooperative says are necessary to support growth in Northwest Arkansas. Shaffer told the committee that Ozarks built a county‑wide fiber network between 2016 and 2022 and that roughly half the cooperative’s electric members now subscribe to its Internet service.

Shaffer said the cooperative would continue paying existing taxes but is proposing an abatement limited to new, specified assets built as part of the proposed projects; under state law the maximum abatement is 65%. He said Ozarks’ ask is for an abatement on the incremental property tax assessed on newly built transmission assets, a Springdale facility to re‑base field crews, and certain in‑territory fiber build projects. The cooperative estimates the necessary transmission rebuild will cost about $200–$300 million; the company said building that work over the next decade could increase property‑tax base in the county substantially over the long term.

“We have not increased our price since we started,” Shaffer said of Ozarks Go’s Internet service, explaining the cooperative’s aim to keep rates low while reinvesting tax savings. He also told the committee the cooperative presently pays roughly $6.5–$7 million in property taxes annually and that about $5 million of that is attributable to Washington County.

County officials pressed Ozarks on several points: whether the request would reduce revenues for school districts (Shaffer said school officials had been consulted and expressed support so long as revenue did not decline), the timeframe for the abatement (presenters described a 10‑year build window with assets placed into abatement when they are put on rendition and a maximum 30‑year abatement life under state law), and the mechanics of how assets would be assessed and transferred for property‑tax purposes.

Ozarks representatives told the committee that rebates or abatements would be reinvested to reduce borrowing and accelerate construction of transmission and fiber assets; they argued the upfront reduction in property tax on specific new assets would enable more rapid buildout and ultimately increase long‑term tax receipts and local economic capacity.

Committee members asked technical and policy questions; reactions were mixed. Some JPs supported the approach as infrastructure investment that would spur development and employment, while others asked for more analysis, comparators and assurances that non‑utility firms would not receive preferential treatment in future requests.

Ending: Ozarks representatives said they would provide copies of the presentation to county staff and to the committee for follow‑up. No vote was taken at the meeting.