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Conway approves agreement to take a 4% stake in new Independence combined-cycle gas plant
Summary
After presentations and council questions, the Conway City Council adopted an agreement enabling Conway Corporation to take a 4% development stake in an Independence combined-cycle natural-gas plant; the ordinance passed with an emergency clause 7-0. City officials described finance off-ramps, audit rights, a projected 2031 online date and at least
Conway City Council voted to adopt an agreement that will give Conway Corporation a 4% development share in a proposed Independence combined-cycle natural-gas plant, part of a regional move away from coal-fired generation.
Representatives said the ownership agreement consolidates development rights previously held in White Bluff and Independence and will shift project development responsibility to Arkansas Electric Cooperatives. Jason Carter, attorney for Conway Corporation, told councilmembers that Conway's 4% interest will fund and receive 4% of development and operational benefits and that the arrangement includes audit rights, off-ramps in the event of financing problems and protections against markup by other participants.
Council members pressed staff on what an "off-ramp" would mean in practice and how a change in costs would affect Conway's ownership share. Carter said the agreement allows a participant to refuse additional contributions if financing becomes untenable, with other co-owners or Arkansas Electric Cooperatives stepping in to cover the shortfall; the amount contributed to date would not be forfeited, but a participant's percentage ownership and benefit share would adjust accordingly.
Council also discussed comparative generation capacity and lifespan. Officials said the new combined-cycle plant could equate to roughly 60 megawatts of effective dispatchable energy (compared with a stated 67 megawatts from coal assets) and that the plant should operate for at least 30 years. A councilmember moved to adopt the ordinance (recorded as O2585) with an emergency clause; the council adopted the ordinance and the emergency clause on roll-call votes, both passing 7-0.
