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Conway Council adopts agreement to buy 4% stake in Independence combined-cycle gas plant
Summary
Council approved an ownership agreement for Conway Corporation to take a 4% share of a new combined-cycle natural gas plant, accepting 4% of construction and operating costs in exchange for 4% of output; council approved the ordinance with an emergency clause, 7–0.
Conway City Council on Oct. 28 adopted an agreement authorizing Conway Corporation to take a 4% ownership interest in a new combined-cycle natural gas plant being developed by Arkansas Electric Cooperatives, with the plant projected to come online Jan. 1, 2031.
Jason Carter, attorney for Conway Corporation, told the council the agreement consolidates Conway's development rights in the White Bluff and Independence projects and commits Conway to pay 4% of construction and operating costs in return for 4% of the plant's benefits. Carter said the plant is "a very efficient, clean, natural gas burning, plant" and that the arrangement includes audit rights and contractual "off ramps" if unexpected costs surge.
Council members asked whether the natural-gas facility would produce the same megawatt output as the coal plant it replaces. Brett (Conway Corp) said the coal plants currently provide about "67 megawatts" but that because the combined-cycle plant is more efficient, Conway expects to receive roughly "60 megawatts" worth of energy but "more electricity" in usable output. Carter agreed: "So even though the total megawatts are smaller, because it's a more efficient plant, it will be dispatched more into the marketplace." He added the city's cost and benefits are percentage-based "with no markup, no ROI to other participants in the facility."
Councilmember questions also covered the agreement's off-ramp language. Carter said the contract includes a financing-failure election that allows a participant to stop further payments; other co-owners would have the right to step in, and Arkansas Electric Cooperatives would act as a backstop if necessary.
Council moved to adopt ordinance o2585 (the Independence plant agreement) with an emergency clause; the motion passed unanimously 7–0. The ordinance passage authorizes Conway Corporation to proceed under the terms described and directs staff to return with any operational or marketing agreements that detail how Conway will receive its share of output and pay its share of operations.
Next steps: Conway Corp. will finalize operation and marketing agreements and return to the council with implementation details and any required financing instruments.
