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Utility regulators say AG failed to meet deadlines in case to raise gas rates

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Utility regulators say AG failed to meet deadlines in case to raise gas rates

UNTIMELY: The Public Service Commission denied multiple motions from Attorney General Tim Griffin, saying the AG missed key filing deadlines. Credit: Brian Chilson

Arkansas Attorney General Tim Griffin’s failure to adhere to filing deadlines has Summit Utilities one step closer to approval of a proposed settlement that would increase residential gas rates by more than 23% for more than half a million Arkansas homes and businesses.  

That’s according to an order entered Tuesday by the Arkansas Public Service Commission, the state’s utility regulator. The commission said Griffin had missed its deadline to object to the proposed settlement, failed to identify anything objectionable in the settlement despite being given extra time to do so, and failed to establish good cause to delay proceedings any further. 

He was also premature in requesting the commission reject the proposed settlement, commissioners said, since they had not yet held a hearing on it.

At first, Griffin applauded the settlement with Summit, which the gas company filed with the commission on Oct. 7. Then, after state legislators publicly criticized the settlement, Griffin suddenly changed his tune. On Oct. 10, he flip-flopped and sent a letter to the commission asking it to reject the settlement and order more negotiation.

Based on the failures outlined in Tuesday’s order, the commission denied Griffin’s motion to set new deadlines in the case, denied his motion to reject the settlement as premature and denied his motion to withdraw from the rate case. Commissioners further ruled that Griffin would not be permitted to cross-examine witnesses or submit testimony in opposition to the proposed settlement at a Wednesday hearing due to his failure to follow the commission’s prior instructions. 

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After noting the parties, including Griffin, had submitted a “unanimous joint Agreement” on Oct. 7, the commission outlined Griffin’s procedural failures as the basis for rejecting his motion for new deadlines:

The AG now wishes to oppose the Agreement despite having missed the deadline to do so, and without identifying any specific issue he now finds objectionable in the Agreement. Moreover, the AG has failed to file any testimony in opposition to the Agreement. Because of the impending statutorily mandated deadline for the Commission to issue its final rate determination and the AG’s failure to identify good cause for the Commission to extend the procedural schedule, the AG’s Motion to Set New Deadlines is denied.

The commission was similarly unmoved by Griffin’s “request for the Commission to prematurely reject the Agreement, before conducting an evidentiary hearing and fully deliberating,” which they called “procedurally inappropriate and unprecedented.” 

Finally, with respect to Griffin’s motion to withdraw from the rate case, the commission again said “the deadlines to file opposition to the settlement have passed and the AG failed to provide good cause to extend that deadline.” The order continued:

The AG has failed to identify a single issue in the Agreement to which he is opposed and failed to file any testimony in opposition to the Agreement. As the AG notes in his Motion, whether or not he is a signatory to the Agreement is irrelevant to the Commission’s power to review and approve, reject, or modify the proposed Agreement, nor does the AG’s continued participation (or not) in the Agreement alter the hearing procedures that have been agreed to and will remain in place when the hearing is continued.

The commission’s order went beyond denying all three of Griffin’s requests. After listing the witnesses required to attend today’s hearing, the commission ruled that Griffin “shall not be permitted to present an issues list, cross-examine any of these witnesses, or submit any testimony in opposition to the Agreement, given [his] failure to adhere to the procedural schedule in this Docket.”

Griffin said he respected the commission’s decision and would “continue working to ensure that Arkansas ratepayers are paying the lowest possible rates.” However, his office also said that Griffin would review the commission’s final order on the proposed settlement and, if he felt it prudent, appeal that decision to the Arkansas Court of Appeals.

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The commission resumed a hearing on the proposed settlement on Wednesday morning. Following public comment, they began with testimony from Summit CEO Kurt Adams. The hearing is scheduled to conclude today, regardless of how long it runs, Public Service Commission Chairman Doyle Webb said at the outset. 

If approved by the commission, the new gas rates would go into effect for Arkansas customers on Nov. 25. If the commission does not rule on the settlement by that date, Summit can impose the 29.4% rate increase the company originally requested in January 2024.

Summit also has the option to delay the increase, which would push it out past wintertime and increased gas usage. Adams testified Wednesday morning that the company likely would not do that. He compared such a delay to his kids asking to put off doing homework.

***

The background on all of this is somewhat convoluted. A more complete version of the timeline can be found in this post, but here is a condensed version:

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Summit Utilities announced in April 2021 it was purchasing CenterPoint Energy’s gas supply systems in Arkansas and Oklahoma for $2.15 billion. The sale officially closed in January 2022. In documents regarding the approval of this sale, Summit asserted they would charge rates similar to what CenterPoint charged and that their revenue, fixed charges and operating expenses would be similar to CenterPoint’s. Summit also agreed not to seek an increase in rates for at least 12 months and to file a request to increase rates — called a “rate case” — between 12 and 24 months from the time the purchase was approved.

Summit filed for a rate increase in January 2024, just inside that 12-to-24 month window. They sought a 29.4% increase in residential gas rates, which they said would increase the average Arkansas homeowner’s bill by about $18 per month. (Opponents noted this average increase reflected the average gas usage for a one-bedroom home and that a two- or three-bedroom home would see a much larger monthly increase.)

Griffin immediately chimed in. After noting it would ultimately be up to the commission whether to grant the requested increase, Griffin said he was “reviewing Summit’s filing to protect Arkansas ratepayers from excessive utility rates.”

Late last month, representatives of Summit entered into negotiations with the attorney general’s office, commission staff and groups representing other interested parties, such as hospitals and colleges. They reached an agreement earlier this month, setting the rate increase at 23.4% instead of the requested 29.4%. This negotiated rate, submitted to the commission for consideration, would increase the average residential customer’s bill by $15.43/month. 

While Griffin praised what he called a solid compromise, some legislators saw it differently. 

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At a Joint Budget Committee hearing two days later, during discussion of the commission’s proposed budget, Rep. Jeff Wardlaw (R-Hermitage) said some of his constituents had received letters from Summit saying the rate increase had been approved. Speaking to representatives of the Public Service Commission who were at the hearing, Wardlaw accused them of not holding Summit’s feet to the fire. “You guys are letting [Summit] run rampant,” he said. 

Other legislators echoed Wardlaw’s concerns. Rep. Fran Cavenaugh (R-Walnut Ridge) accused commission spokesperson Danni Hoefer of “talking out of both sides of [her] mouth” by saying commission staff had approved the settlement but that the commission hadn’t. Rep. Brian Evans (R-Cabot) noted the intervenors in the rate case seemed to represent everyone but the residential customers, and he asked who represented them. The attorney general, Hoefer said.

A day after legislators raked the commission and the proposed rate increase over the coals, Griffin suddenly changed his tune on the settlement. He sent a letter to the commission, bragging about the reduction in the proposed increase that his office “obtained,” but asking the commission to nevertheless reject the settlement and order more negotiation. He followed this letter with a motion to reject the settlement or, in the alternative, a motion to allow his office to withdraw from the settlement proceedings and for the commission to set a new schedule for negotiations.



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Arkansas

FDA phasing out ineffective decongestant | Arkansas Democrat Gazette

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FDA phasing out ineffective decongestant | Arkansas Democrat Gazette


WASHINGTON — U.S. officials are moving to phase out the leading decongestant found in hundreds of over-the-counter medicines, concluding that it doesn’t actually relieve nasal congestion.

Phenylephrine is used in popular versions of Sudafed, Dayquil and other medications, but experts have long questioned its effectiveness. Last month, the Food and Drug Administration formally proposed revoking its use in pills and liquid solutions, kicking off a process that’s likely to force drugmakers to remove or reformulate products.

It’s a win for skeptical academics, including researchers at the University of Florida who petitioned the FDA to revisit the drug’s use in 2007 and again in 2015. For consumers, it will likely mean switching to alternatives, including an older decongestant that was moved behind the pharmacy counter nearly 20 years ago.

Doctors say Americans will be better off without phenylephrine, which is often combined with other medicines to treat cold, flu, fever and allergies.

“People walk into the drugstore today and see 55,000 medicines on the shelf, and they pick one that is definitely not going to work,” said Dr. Brian Schroer of the Cleveland Clinic. “You take away that option, and it will be easier for them to self-direct toward products that really will help them.”

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The FDA decision was expected after federal advisers last year voted unanimously that oral phenylephrine medications haven’t been shown to relieve congestion.

Experts reviewed several recent, large studies indicating that phenylephrine was no better than a placebo at clearing nasal passageways. They also revisited studies from the 1960s and 1970s that supported the drug’s initial use, finding numerous flaws and questionable data.

The panel’s opinion only applied to phenylephrine in oral medications, which account for roughly $1.8 billion in annual U.S. sales. The drug is still considered effective in nasal sprays, though those are much less popular.

Phenylephrine wasn’t always the top choice for cold and allergy products. Many were originally formulated with a different drug, pseudoephedrine.

But a 2006 law required pharmacies to move pseudoephedrine products behind the counter, citing their potential to be processed into methamphetamine. Companies such as Johnson & Johnson and Bayer decided to reformulate their products to keep them readily available on store shelves — and labeled many of them as “PE” versions of familiar brand names.

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PHARMACY NEEDED

Consumers who still want to take pills or syrups for relief will probably need to head to the pharmacy counter — where the pseudoephedrine-containing versions of Sudafed, Claritin D and other products remain available without a prescription. Purchasers need to provide a photo ID.

Beyond those products, most of the other options are over-the-counter nasal sprays or solutions.

Saline drops and rinses are a quick way to clear mucus from the nose. For long-term relief from seasonal stuffiness, itching and sneezing, many doctors recommend nasal steroids, sold as Flonase, Nasacort and Rhinocort.

“These medicines are by far the most effective daily treatment for nasal congestion and stuffiness,” Schroer said. “The biggest issue is they’re not great when used on an as-needed basis.”

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Nasal steroids generally have to be used daily to be highly effective. For short-term relief, patients can try antihistamine sprays, such as Astepro, which are faster acting.

Phenylephrine-based sprays will also remain on pharmacy shelves.

SWALLOWING STIFLES AID

The experts who challenged the drug’s effectiveness say it’s quickly broken down and rendered ineffective when it hits the stomach.

“This is a good drug, but not when it’s swallowed,” said Leslie Hendeles, professor emeritus at the University of Florida’s College of Pharmacy, where he co-authored several papers on the ingredient. “It’s inactivated in the gut and doesn’t get into the bloodstream, so it can’t get to the nose.”

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When Hendeles and his colleagues first petitioned the FDA on phenylephrine, they suggested a higher dose might be effective. But subsequent studies showed that even doses 400% higher than those currently recommended don’t treat stuffiness.

The FDA and other researchers concluded that pushing the dosage even higher might carry safety risks.

“If you’re using very high doses, the risk is raising blood pressure so high that it could be hazardous to patients,” said Randy Hatton, a University of Florida professor who co-led the research on phenylephrine.

Because of its cardiovascular effects, the drug is sometimes used to treat dangerously low blood pressure during surgery, Hatton noted.

    Decongestant pills containing phenylephrine are displayed for a photograph in Philadelphia on Monday, Dec. 9, 2024. (AP Photo/Jonathan Poet)
 
 
  photo  A decongestant pill containing phenylephrine is displayed for a photograph in Philadelphia on Monday, Dec. 9, 2024. (AP Photo/Jonathan Poet)
 
 
  photo  A decongestant pill containing phenylephrine is displayed for a photograph in Philadelphia on Monday, Dec. 9, 2024. (AP Photo/Jonathan Poet)
 
 



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Sam Pittman breaks down Arkansas' biggest transfer portal needs

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Sam Pittman breaks down Arkansas' biggest transfer portal needs


With the transfer portal in full swing, Arkansas coach Sam Pittman addressed some of the biggest areas of need for his team. The Razorbacks are coming off of a 6-6 finish in the fifth year under Pittman and looking to boost their roster for another run in 2025.

Speaking with media, Pittman highlighted both the offensive and defensive line as the areas where Arkansas needs to be most aggressive in the portal. He also cited the linebacker group as a the position that the team feels best about, saying the Razorbacks will look to improve its defensive backs room first.

“Offensive line would be one (area of need),” the coach said. “Defensive line would be one. We felt like we were pretty good at the linebacker spots. If you go back and look a couple of years ago, the world was falling because this linebacker (left), that linebacker (left).

“I think we all agreed out linebacker room was a strength for us this year. But that would be probably the least worried about (position). We need some safeties. We need some corners. But I think O-line and tight end’s a big deal. Wide receivers. We’ve got several spots to fill, but off the top of my head, that’s who it would be.”

Since Pittman’s comments, Arkansas has been active in the transfer portal to bring in 13 players. Unfortunately, they’ve also lost 26 more and rank just No. 59 out of 70 teams in On3’s Transfer Portal Team Rankings.

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Staying true to to his word, Pittman has brought in four offensive linemen and a pair of defensive lineman through the portal. Former Georgia Tech offensive tackle Corey Robinson II is the highest rated of those additions, coming in as the No. 32 overall player and No. 5 player at his position according to On3’s Transfer Portal Player Rankings.

Arkansas also brought in former Charlotte receiver O’Mega Blake and former Cincinnati cornerback Jordan Young to give it three players ranked in the top 150.

The Razorbacks still have a long way to go to complete their portal class, likely hoping to add some more defensive linemen before it closes later this month. They are looking to make the next push in the SEC next season and the players they’ve gotten so far are a good start.



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Part of Arkansas book ban law is unconstitutional, federal judge rules

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Part of Arkansas book ban law is unconstitutional, federal judge rules


A federal judge ruled on Monday that sections of an Arkansas law, which sought to impose criminal penalties on librarians and booksellers for distributing “harmful” material to children, were unconstitutional.

The law, known as the Arkansas Act 372, was signed into law last year by Republican governor Sarah Huckabee Sanders. It was challenged by a coalition of organizations in the state, leading to a lengthy legal battle that concluded this week.

Two sections of Act 372 subjected librarians and booksellers to jail time for distributing material that is deemed “harmful to children”. Proponents of the law, including Sanders, said the law was put in place to “protect children” from “obscene” material.

“Act 372 is just common sense: schools and libraries shouldn’t put obscene material in front of our kids,” Sanders said in a statement to KATV-TV. “I will work with Attorney General Griffin to appeal this ruling and uphold Arkansas law.”

The governor signed the bill into law in March 2023, and a coalition of organizations in the state, including the Central Arkansas Library System in Little Rock and the ACLU of Arkansas, challenged it last year, saying the law was vague, overly broad and that the fear of criminal penalties would have a chilling effect on librarians across the state. A federal court temporarily blocked the enforcement of the two sections in question, while the law was being challenged in court.

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The two sections that were struck down on Monday had established a criminal misdemeanor for “furnishing a harmful item to a minor”, and would have required local governments to create oversight boards to review challenged material. The organizations opposing the law argued that local officials, at their own discretion, could censor whichever books and material they pleased.

“This is a significant milestone on a long, sometimes rocky road we were obligated to travel after the passage of Act 372,” said Nate Coulter, executive director of the Central Arkansas Library System, in response to Monday’s ruling.

“We took that path to protect our librarians from prosecution for doing their jobs and to prevent some local elected officials from censoring library books they did not feel were ‘appropriate’ for our patrons to read.”

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In 2004, a federal judge struck down a similar law. The year prior, the state passed a law that required booksellers and librarians to hide materials deemed “harmful to minors”. It was deemed unconstitutional after legal challenges.



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