(1) As used in this subchapter:(1) (A) “Construction work in progress” means:(i) Materials costs;(ii) Labor costs;(iii) Labor costs adders;(iv) Costs associated with third-party vendors and consultants;(v) Costs associated with procurement of real property rights;(vi) Costs associated with securing all necessary approvals;(vii) Taxes;(viii) Tax gross-up charges;(ix) Capital suspense charges; and(x) Overheads for any strategic investments that are not yet complete or in service.(B) “Construction work in progress” includes costs that are:(i) Recorded under the requirements of the uniform system of accounts adopted by the Arkansas Public Service Commission by rule and any applicable accounting guidance issued by the Federal Energy Regulatory Commission that are adopted by the Arkansas Public Service Commission by rule; and(ii) In conformance with generally accepted accounting principles;(2) “Electric distribution cooperative” means a rural electric cooperative that sells electricity at retail and is a member of an electric generation and transmission cooperative;(3) “Electric generation and transmission cooperative” means a rural electric cooperative formed under the Electric Cooperative Corporation Act, § 23-18-301 et seq., that:(A) Does not have a certificated service territory; and(B) Exclusively sells electricity at wholesale;(4) “Investor-owned electric utility” means a public utility that is engaged in generating, transmitting, delivering, or furnishing electricity to or for the public for compensation and that is owned by investors and is not a cooperative;(5) “Investor-owned natural gas utility” means a public utility that is engaged in the production, transport, delivery, or furnishing of natural gas to or for the public for compensation and that is owned by investors and is not a cooperative;(6) “Major utility facility” means the same as defined in § 23-18-503;(7) “Public utility” means the same as defined in § 23-1-101;(8) “Rider” means a rate schedule approved by the Arkansas Public Service Commission to recover one (1) or more strategic investments and the recovery costs that are not included in other rates or rate schedules approved by the Arkansas Public Service Commission;(9) “Rider test period” means a historical test period under § 23-4-406 which shall include adjustments identified by the electric utility or the natural gas utility to a historical test period to reflect the effects on an annualized basis of a change in circumstances which may occur within twelve (12) months after the end of the historical test year where the changes are reasonably known and measurable;(10) (A) “Strategic investments” means investments, either construction or purchase, and associated operating expenses made by an electric public utility or natural gas public utility, and approved by the Arkansas Public Service Commission under § 23-3-201 et seq., the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or a notice under § 23-18-104 or as otherwise stated in subdivision (10)(B) of this section, to:(i) Support growth and economic development in this state, including supporting the development of sites designated as available for economic development;(ii) Maintain and improve the provision of reliable electric utility service and natural gas utility service to new and existing customers in this state;(iii) Support the license extension for existing nuclear generation resources; and(iv) Ensure that electric utilities maintain adequate dispatchable generation resources to support reliable service for their customers that is consistent with the resource adequacy requirements established by the applicable load balancing authority.(B) “Strategic investments” includes without limitation investments and associated operating expenses associated with:(i) A new electric generating facility, an associated transportation and storage facility for fuel, and other facilities designed for or capable of operation at a capacity of one hundred megawatts (100 MW) or more for a single facility;(ii) An energy storage facility designed for or capable of operating at a capacity of fifty megawatts (50 MW) or more for a single facility or a combination of energy storage facilities and an electric generating facility designed for or capable of operation at a combined capacity of one hundred megawatts (100 MW) or more for a single facility to provide service to new and existing customers located in Arkansas;(iii) Upgrades, expansions, or fuel conversions of existing electric generating facilities and associated transportation and storage facilities for fuel and other facilities, energy storage facilities, or any combination thereof to sustain or increase capacity and, therefore, improve reliability, to provide service to new and existing customers in Arkansas;(iv) New electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to provide service to new and existing customers located in Arkansas;(v) Upgrades or expansions of existing electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to increase capacity, therefore improving reliability to provide service to new and existing customers located in Arkansas;(vi) New natural gas transmission lines or high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities;(vii) Upgrades or expansions of existing natural gas transmission lines, high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities; and(viii) Feasibility studies of strategic investments and advanced energy technologies, as defined in § 23-4-1308, including site studies and due diligence to determine construction estimates.(C) (i) A renewable resource strategic investment shall be eligible for recovery through the rider under this section if the Arkansas Public Service Commission finds in a proceeding under § 23-3-201 et seq., § 23-18-104, the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or any other proceeding for approval of a renewable resource strategic investment based on substantial evidence that a renewable resource strategic investment results in benefits to customers and the electric utility would continue to have adequate dispatchable resources to provide reliable service to its customers consistent with the resource adequacy requirements of the load balancing authority with the addition of the renewable resource strategic investment.(ii) As used in subdivision (10)(C)(i) of this section, “benefits” shall include without limitation:(a) The cost of the renewable resource strategic investment is reasonable and prudently incurred;(b) The renewable resource strategic investment is necessary to supplement or replace the electric utility's existing generation resources;(c) The renewable resource strategic investment provides energy and capacity benefits;(d) The renewable resource provides generation resource mix diversification and fuel source mix benefits and risk mitigation benefits;(e) The renewable resource strategic investment supports efforts to attract or retain economic development opportunities for this state; or(f) A customer or customers contract to pay all or a portion of the cost of the strategic investment as a resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.(D) Wind resources located in Arkansas are not eligible for recovery through a rider under this subchapter; and(11) “Times interest earned ratio” means earnings before interest and taxes divided by the total interest payable on bonds and other debt.
(1) (A) “Construction work in progress” means:(i) Materials costs;(ii) Labor costs;(iii) Labor costs adders;(iv) Costs associated with third-party vendors and consultants;(v) Costs associated with procurement of real property rights;(vi) Costs associated with securing all necessary approvals;(vii) Taxes;(viii) Tax gross-up charges;(ix) Capital suspense charges; and(x) Overheads for any strategic investments that are not yet complete or in service.(B) “Construction work in progress” includes costs that are:(i) Recorded under the requirements of the uniform system of accounts adopted by the Arkansas Public Service Commission by rule and any applicable accounting guidance issued by the Federal Energy Regulatory Commission that are adopted by the Arkansas Public Service Commission by rule; and(ii) In conformance with generally accepted accounting principles;
(A) “Construction work in progress” means:(i) Materials costs;(ii) Labor costs;(iii) Labor costs adders;(iv) Costs associated with third-party vendors and consultants;(v) Costs associated with procurement of real property rights;(vi) Costs associated with securing all necessary approvals;(vii) Taxes;(viii) Tax gross-up charges;(ix) Capital suspense charges; and(x) Overheads for any strategic investments that are not yet complete or in service.
(i) Materials costs;
(ii) Labor costs;
(iii) Labor costs adders;
(iv) Costs associated with third-party vendors and consultants;
(v) Costs associated with procurement of real property rights;
(vi) Costs associated with securing all necessary approvals;
(vii) Taxes;
(viii) Tax gross-up charges;
(ix) Capital suspense charges; and
(x) Overheads for any strategic investments that are not yet complete or in service.
(B) “Construction work in progress” includes costs that are:(i) Recorded under the requirements of the uniform system of accounts adopted by the Arkansas Public Service Commission by rule and any applicable accounting guidance issued by the Federal Energy Regulatory Commission that are adopted by the Arkansas Public Service Commission by rule; and(ii) In conformance with generally accepted accounting principles;
(i) Recorded under the requirements of the uniform system of accounts adopted by the Arkansas Public Service Commission by rule and any applicable accounting guidance issued by the Federal Energy Regulatory Commission that are adopted by the Arkansas Public Service Commission by rule; and
(ii) In conformance with generally accepted accounting principles;
(2) “Electric distribution cooperative” means a rural electric cooperative that sells electricity at retail and is a member of an electric generation and transmission cooperative;
(3) “Electric generation and transmission cooperative” means a rural electric cooperative formed under the Electric Cooperative Corporation Act, § 23-18-301 et seq., that:(A) Does not have a certificated service territory; and(B) Exclusively sells electricity at wholesale;
(A) Does not have a certificated service territory; and
(B) Exclusively sells electricity at wholesale;
(4) “Investor-owned electric utility” means a public utility that is engaged in generating, transmitting, delivering, or furnishing electricity to or for the public for compensation and that is owned by investors and is not a cooperative;
(5) “Investor-owned natural gas utility” means a public utility that is engaged in the production, transport, delivery, or furnishing of natural gas to or for the public for compensation and that is owned by investors and is not a cooperative;
(6) “Major utility facility” means the same as defined in § 23-18-503;
(7) “Public utility” means the same as defined in § 23-1-101;
(8) “Rider” means a rate schedule approved by the Arkansas Public Service Commission to recover one (1) or more strategic investments and the recovery costs that are not included in other rates or rate schedules approved by the Arkansas Public Service Commission;
(9) “Rider test period” means a historical test period under § 23-4-406 which shall include adjustments identified by the electric utility or the natural gas utility to a historical test period to reflect the effects on an annualized basis of a change in circumstances which may occur within twelve (12) months after the end of the historical test year where the changes are reasonably known and measurable;
(10) (A) “Strategic investments” means investments, either construction or purchase, and associated operating expenses made by an electric public utility or natural gas public utility, and approved by the Arkansas Public Service Commission under § 23-3-201 et seq., the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or a notice under § 23-18-104 or as otherwise stated in subdivision (10)(B) of this section, to:(i) Support growth and economic development in this state, including supporting the development of sites designated as available for economic development;(ii) Maintain and improve the provision of reliable electric utility service and natural gas utility service to new and existing customers in this state;(iii) Support the license extension for existing nuclear generation resources; and(iv) Ensure that electric utilities maintain adequate dispatchable generation resources to support reliable service for their customers that is consistent with the resource adequacy requirements established by the applicable load balancing authority.(B) “Strategic investments” includes without limitation investments and associated operating expenses associated with:(i) A new electric generating facility, an associated transportation and storage facility for fuel, and other facilities designed for or capable of operation at a capacity of one hundred megawatts (100 MW) or more for a single facility;(ii) An energy storage facility designed for or capable of operating at a capacity of fifty megawatts (50 MW) or more for a single facility or a combination of energy storage facilities and an electric generating facility designed for or capable of operation at a combined capacity of one hundred megawatts (100 MW) or more for a single facility to provide service to new and existing customers located in Arkansas;(iii) Upgrades, expansions, or fuel conversions of existing electric generating facilities and associated transportation and storage facilities for fuel and other facilities, energy storage facilities, or any combination thereof to sustain or increase capacity and, therefore, improve reliability, to provide service to new and existing customers in Arkansas;(iv) New electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to provide service to new and existing customers located in Arkansas;(v) Upgrades or expansions of existing electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to increase capacity, therefore improving reliability to provide service to new and existing customers located in Arkansas;(vi) New natural gas transmission lines or high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities;(vii) Upgrades or expansions of existing natural gas transmission lines, high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities; and(viii) Feasibility studies of strategic investments and advanced energy technologies, as defined in § 23-4-1308, including site studies and due diligence to determine construction estimates.(C) (i) A renewable resource strategic investment shall be eligible for recovery through the rider under this section if the Arkansas Public Service Commission finds in a proceeding under § 23-3-201 et seq., § 23-18-104, the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or any other proceeding for approval of a renewable resource strategic investment based on substantial evidence that a renewable resource strategic investment results in benefits to customers and the electric utility would continue to have adequate dispatchable resources to provide reliable service to its customers consistent with the resource adequacy requirements of the load balancing authority with the addition of the renewable resource strategic investment.(ii) As used in subdivision (10)(C)(i) of this section, “benefits” shall include without limitation:(a) The cost of the renewable resource strategic investment is reasonable and prudently incurred;(b) The renewable resource strategic investment is necessary to supplement or replace the electric utility's existing generation resources;(c) The renewable resource strategic investment provides energy and capacity benefits;(d) The renewable resource provides generation resource mix diversification and fuel source mix benefits and risk mitigation benefits;(e) The renewable resource strategic investment supports efforts to attract or retain economic development opportunities for this state; or(f) A customer or customers contract to pay all or a portion of the cost of the strategic investment as a resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.(D) Wind resources located in Arkansas are not eligible for recovery through a rider under this subchapter; and
(A) “Strategic investments” means investments, either construction or purchase, and associated operating expenses made by an electric public utility or natural gas public utility, and approved by the Arkansas Public Service Commission under § 23-3-201 et seq., the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or a notice under § 23-18-104 or as otherwise stated in subdivision (10)(B) of this section, to:(i) Support growth and economic development in this state, including supporting the development of sites designated as available for economic development;(ii) Maintain and improve the provision of reliable electric utility service and natural gas utility service to new and existing customers in this state;(iii) Support the license extension for existing nuclear generation resources; and(iv) Ensure that electric utilities maintain adequate dispatchable generation resources to support reliable service for their customers that is consistent with the resource adequacy requirements established by the applicable load balancing authority.
(i) Support growth and economic development in this state, including supporting the development of sites designated as available for economic development;
(ii) Maintain and improve the provision of reliable electric utility service and natural gas utility service to new and existing customers in this state;
(iii) Support the license extension for existing nuclear generation resources; and
(iv) Ensure that electric utilities maintain adequate dispatchable generation resources to support reliable service for their customers that is consistent with the resource adequacy requirements established by the applicable load balancing authority.
(B) “Strategic investments” includes without limitation investments and associated operating expenses associated with:(i) A new electric generating facility, an associated transportation and storage facility for fuel, and other facilities designed for or capable of operation at a capacity of one hundred megawatts (100 MW) or more for a single facility;(ii) An energy storage facility designed for or capable of operating at a capacity of fifty megawatts (50 MW) or more for a single facility or a combination of energy storage facilities and an electric generating facility designed for or capable of operation at a combined capacity of one hundred megawatts (100 MW) or more for a single facility to provide service to new and existing customers located in Arkansas;(iii) Upgrades, expansions, or fuel conversions of existing electric generating facilities and associated transportation and storage facilities for fuel and other facilities, energy storage facilities, or any combination thereof to sustain or increase capacity and, therefore, improve reliability, to provide service to new and existing customers in Arkansas;(iv) New electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to provide service to new and existing customers located in Arkansas;(v) Upgrades or expansions of existing electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to increase capacity, therefore improving reliability to provide service to new and existing customers located in Arkansas;(vi) New natural gas transmission lines or high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities;(vii) Upgrades or expansions of existing natural gas transmission lines, high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities; and(viii) Feasibility studies of strategic investments and advanced energy technologies, as defined in § 23-4-1308, including site studies and due diligence to determine construction estimates.
(i) A new electric generating facility, an associated transportation and storage facility for fuel, and other facilities designed for or capable of operation at a capacity of one hundred megawatts (100 MW) or more for a single facility;
(ii) An energy storage facility designed for or capable of operating at a capacity of fifty megawatts (50 MW) or more for a single facility or a combination of energy storage facilities and an electric generating facility designed for or capable of operation at a combined capacity of one hundred megawatts (100 MW) or more for a single facility to provide service to new and existing customers located in Arkansas;
(iii) Upgrades, expansions, or fuel conversions of existing electric generating facilities and associated transportation and storage facilities for fuel and other facilities, energy storage facilities, or any combination thereof to sustain or increase capacity and, therefore, improve reliability, to provide service to new and existing customers in Arkansas;
(iv) New electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to provide service to new and existing customers located in Arkansas;
(v) Upgrades or expansions of existing electric transmission facilities, including substations with a design voltage of more than one hundred kilovolts (100 kV) or more to increase capacity, therefore improving reliability to provide service to new and existing customers located in Arkansas;
(vi) New natural gas transmission lines or high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities;
(vii) Upgrades or expansions of existing natural gas transmission lines, high pressure distribution lines with a maximum allowable operating pressure of one hundred twenty-five pounds per square inch gauge (125 PSIG) or greater and natural gas storage facilities; and
(viii) Feasibility studies of strategic investments and advanced energy technologies, as defined in § 23-4-1308, including site studies and due diligence to determine construction estimates.
(C) (i) A renewable resource strategic investment shall be eligible for recovery through the rider under this section if the Arkansas Public Service Commission finds in a proceeding under § 23-3-201 et seq., § 23-18-104, the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or any other proceeding for approval of a renewable resource strategic investment based on substantial evidence that a renewable resource strategic investment results in benefits to customers and the electric utility would continue to have adequate dispatchable resources to provide reliable service to its customers consistent with the resource adequacy requirements of the load balancing authority with the addition of the renewable resource strategic investment.(ii) As used in subdivision (10)(C)(i) of this section, “benefits” shall include without limitation:(a) The cost of the renewable resource strategic investment is reasonable and prudently incurred;(b) The renewable resource strategic investment is necessary to supplement or replace the electric utility's existing generation resources;(c) The renewable resource strategic investment provides energy and capacity benefits;(d) The renewable resource provides generation resource mix diversification and fuel source mix benefits and risk mitigation benefits;(e) The renewable resource strategic investment supports efforts to attract or retain economic development opportunities for this state; or(f) A customer or customers contract to pay all or a portion of the cost of the strategic investment as a resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.
(i) A renewable resource strategic investment shall be eligible for recovery through the rider under this section if the Arkansas Public Service Commission finds in a proceeding under § 23-3-201 et seq., § 23-18-104, the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or any other proceeding for approval of a renewable resource strategic investment based on substantial evidence that a renewable resource strategic investment results in benefits to customers and the electric utility would continue to have adequate dispatchable resources to provide reliable service to its customers consistent with the resource adequacy requirements of the load balancing authority with the addition of the renewable resource strategic investment.
(ii) As used in subdivision (10)(C)(i) of this section, “benefits” shall include without limitation:(a) The cost of the renewable resource strategic investment is reasonable and prudently incurred;(b) The renewable resource strategic investment is necessary to supplement or replace the electric utility's existing generation resources;(c) The renewable resource strategic investment provides energy and capacity benefits;(d) The renewable resource provides generation resource mix diversification and fuel source mix benefits and risk mitigation benefits;(e) The renewable resource strategic investment supports efforts to attract or retain economic development opportunities for this state; or(f) A customer or customers contract to pay all or a portion of the cost of the strategic investment as a resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.
(a) The cost of the renewable resource strategic investment is reasonable and prudently incurred;
(b) The renewable resource strategic investment is necessary to supplement or replace the electric utility's existing generation resources;
(c) The renewable resource strategic investment provides energy and capacity benefits;
(d) The renewable resource provides generation resource mix diversification and fuel source mix benefits and risk mitigation benefits;
(e) The renewable resource strategic investment supports efforts to attract or retain economic development opportunities for this state; or
(f) A customer or customers contract to pay all or a portion of the cost of the strategic investment as a resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.
(D) Wind resources located in Arkansas are not eligible for recovery through a rider under this subchapter; and
(11) “Times interest earned ratio” means earnings before interest and taxes divided by the total interest payable on bonds and other debt.