West Memphis, Entergy agree on territory deal

West Memphis, Entergy agree on territory deal

Move paves the way for area to develop into ‘ Mega-Site’

news@theeveningtimes.com

The West Memphis Utilities Commission was willing to cede a portion of its domain for the overall good of the community and with an eye on big payoffs in the future.

Last week, Commissioners approved releasing city utilities’ territory to Entergy for development.

Utility Department General Manager Todd Pedersen said the required undertaking to develop electrical supply to its super site was beyond what the city utility company could pull off and recommended letting the electric service area go to Entergy Arkansas Inc. Entergy will develop the infrastructure to deliver massive amounts of electricity to the industrial site.

“This is the extreme western end of the city,” said Pedersen. “I am asking to release the territory for a couple of reasons. Right now, we don’t offer any services out there, even though it is allocated to us as territory. What this will allow the city to do is to get it designated as a Mega-Site. Entergy has the personnel and capability that we don’t.”

A Mega-Site is a land development by private developers, Universities, or governments to promote business clusters. These organizations develop the land so that it is 'shovel ready' for big business, by improving the infrastructure, such as roads, utilities, and landscape.

The area targeted for development is bounded by U.S. Highway 64 on the north, Interstate 40 on the south and State Highway 147 on the west.

A certified Mega-Site would serve to attract big industry and require a massive load of electricity, something in the in the onemillion- watt range, according to Pedersen.

“It would cater to large industrial customers,” he said. “The companies the city is trying to get exposure to require 100 MW or bigger.”

Pedersen put the expected electrical demand in perspective.

“That is a larger load than our city can handle,” said Pedersen. “Our city is only 85 MW. These are very large industrial sites that a lot of time require voltage greater than we serve — transmission level voltage.” The location, with close proximity to highway, river and rail access in the area, make it a very desirable spot for industrial development, according to the general

manager.

“It’s good for the city as a whole, because we are getting immediate exposure to a piece of property that is potentially a very hot area,” said Pedersen. “Industries are looking to be by the Interstate. By doing this, we could get a project in quicker.”

West Memphis Economic Development Project Manager Mallory Darby emphasized that giving up the territory might seem like a loss, but ensured the commission the release would be a big step in getting the site certified for development.

“We are working to get this to be a marketable, shovel ready site,” said Darby. “This will be called an ‘energy select site.’ That means whenever Entergy has companies come to them looking for sites in their service areas, this is one that gets presented. It gives us more exposure.”

Assistant Utilities Manager Ward Wimbish touted the top-shelf quality of the new site.

“When a project that big comes along, everyone is after it,” said Wimbish.

“We have to be ready to answer on the dime. We want it pre-certified. That’s how its going to get done.”

Wimbish said the city would still get some utilities money under any agreement.

“There would be a passthrough, a franchise fee,” said Wimbish. “That would be the way to fund getting the other utilities out there.”

The site is highly-regarded, according to Wimbish.

“The Arkansas Economic Development Commission markets this as the best in the state,” said Wimbish.

“They have said that.

The commission approved a Memorandum of Understanding. With Mayor Bill Johnson’s signature, the city will join Entergy to ask the Arkansas Public Service Commission to give approval for the switch along with the site certification, a process that could take up to a year.

By John Rech