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After lengthy testimony on capacity and local control, senator pulls consumer-protection water bill
Summary
Senate Bill 554 on consumer protections for water customers drew extensive opposition from Hot Springs officials and water providers, who warned the measure could force cities to serve beyond available capacity; Senator Clark pulled the bill after debate and testimony about Lake Hamilton allocations, improvement districts and local decision-making.
Senate Bill 554, presented by Senator Clark as a consumer-protection measure, prompted extended testimony and heated questioning in the City, County & Local Affairs Committee before the sponsor withdrew the bill.
City Manager Bill Burrow of Hot Springs told the committee the bill "adds an additional section" to state code and is "contrary" to specific Arkansas code sections; he warned the measure would turn what the city views as a local utility-management issue into a state-mandated obligation. Burrow described Hot Springs' local connection policy and said the utility has worked to manage remaining capacity while approving the majority of connections historically.
Brian Albright, also testifying for Hot Springs, described a technical constraint: Entergy of Arkansas controls Lake Hamilton and denied an increase in Hot Springs' daily allotment in 2004 from 20,000,000 to 36,000,000 gallons, a denial Albright said was rooted in dam infrastructure concerns. He said the city cannot legally or physically take more water from Lake Hamilton without resolving those allocation and engineering issues and that requiring service beyond a provider's capacity could force federal-court action to protect city customers.
Committee members pressed on whether the bill would force providers to serve beyond capacity and how the bill treats consumer-paid infrastructure extensions; Senator Clark and other proponents said the measure is about equal treatment of similar customers and consumer protections, while opponents argued it removes local discretion and prioritizes new connections over existing customers. Municipal and association representatives warned it would have a significant effect on cities that own and manage utilities.
After extensive debate and multiple speakers from Hot Springs, Central Arkansas Water interests and other committee members, Senator Clark announced he would withdraw SB 554. The transcript records that the bill was pulled and the committee adjourned.
