The Arkansas Electric Cooperative Corp. feels blessed to serve one of the fastest-growing regions in the country, the state's northwest quadrant of vibrant communities and natural beauty. But as tightening power supply trends continue, load growth is more complicated than it once was.

“We're running in a deficit for capacity and need to build it, and build it quickly," says Jonathan Oliver, AECC chief operations officer.

The Little Rock-based generation and transmission co-op faces retirements of about 1,200 megawatts of coal-fired generation between now and 2030. As much as 600 MW goes away in 2028, while residential load is on pace to grow by 30 MW to 50 MW, or 1.5% to 2% systemwide, annually.

To compensate, AECC is seizing the opportunity to rebalance its portfolio and is investing nearly $1 billion in more than 1,000 MW of new natural gas generation to ensure cost-effective reliability for its 17 distribution member co-ops.

“Gas prices are fairly stable now, offering members a least-cost reliable resource," says Oliver. “It's an accessible, dispatchable resource we can rely on, and it gets full accreditation to serve the market."

The G&T's current fleet of nearly 4,300 MW of gas, coal, hydro, wind and solar participates in the Southwest Power Pool and the Midcontinent Independent System Operator wholesale electricity markets.

By the end of this year, its Thomas B. Fitzhugh Generating Station will increase its output from 170 MW to 270 MW in time to meet a forecast capacity shortage in the SPP. AECC says the $93 million addition of two units at the Ozark gas plant will be cost-effective because of existing pipeline and transmission infrastructure at the site.

Next year, the G&T will break ground on its largest generating facility to date, a 900-MW two-turbine, simple-cycle gas plant on 100 acres near Naples, Texas.

The nearly $850 million project—the G&T's first power station outside Arkansas—will be near three gas pipelines and transmission lines to efficiently supply member co-ops. It is slated for startup in November 2028.

“Making these investments ensures reliability for our members, and it ensures low costs for our members for the long term, not just a few months or a few years," Oliver says.

AECC has pursued savings and efficiency at other existing sites. It replaced its gas-fired Carl Bailey Generation Station with the Woodruff County Solar Project in 2023 with identical capacity.

Despite there being no renewable standard in Arkansas, the G&T's portfolio is 18% non-fossil.

“We have an all-of-the-above philosophy," says Rob Roedel, senior director of corporate communications for AECC and the statewide, Arkansas Electric Cooperatives Inc. “We look at resources. If it makes economic sense for reliability in an affordable, responsible manner, we will pursue it."

And when it comes to building new generation over signing power purchase agreements, Oliver equates the advantages to buying versus renting a home.

“By taking advantage of our owned interconnection at the Bailey plant, we're maintaining a diverse portfolio of resources for members," he says. “We are building equity for our members that will pay returns over time."