In February 2003, the General Assembly passed Act 204 of 2003, The Electric Utility Regulatory Reform Act,that repeals Chapter 19 of Title 23 (Act 1556 of 1999 and Act 324 of 2001). With the passage of Act 204, the PSC has "determined that Arkansas’ electric ratepayers would be unlikely to benefit from, and could be harmed by, retail electric competition for the foreseeable future."
The original legislation, Act 1556 of 1999, would have implemented retail choice as early as January 1, 2002 but no later than June 30, 2003.
In February 2001, the state Public Service Commission (PSC) published the "Progress Report to the General Assembly on the Development of Competition in Electric Markets and the Impact on Retail Customers," and determined that Arkansas would not be ready to implement deregulation by the original start date. As a result, the state legislature passed Act 324, which delayed the start until at least October 1, 2003, but no later than October 1, 2005.
In December 2001, the PSC recommended that the General Assembly either repeal the current statute or suspend the statute until 2010 or 2012. The recommendations, contained in the Commission’s "Report to the General Assembly Pursuant to Act 324 on the Development of a Competitive Electric Market and Possible Impact on Customers," were based on a cost-benefit analysis that showed net price benefits would not occur for ratepayers before 2012 and that an operating regional transmission organization did not exist.