This bill mandates that the Arkansas Public Service Commission (PSC) must approve or deny settlement agreements related to the closure or elimination of electric generation units or transmission assets involving public utilities and certain entities, including the U.S. Government. The new section added to the Arkansas Code specifies that public utilities must file an application with the PSC for any proposed settlement agreement that aims to close, deactivate, or decommission electric generation units or transmission assets. The application must include the terms of the settlement and an acknowledgment that the utility will not proceed until the PSC grants approval.

The PSC is required to evaluate the proposed settlement agreements based on specific standards, ensuring that the legal claims are reasonable and that the agreement does not impose undue costs on consumers. The commission will also seek input from the Attorney General's office and other relevant state agencies to assess compliance with legal standards. Additionally, the bill outlines the need for clear and convincing evidence to support the utility's decision to enter into the settlement, including documentation of the decision-making process. Notably, the provisions of this subchapter do not apply to any settlements or legal resolutions that were executed or ordered prior to the bill's effective date.