(a) An investor-owned electric utility or an investor-owned natural gas utility may use a rider to recover strategic investments that are not otherwise recoverable through rates that were previously approved by the Arkansas Public Service Commission or charged by the investor-owned electric utility or the investor-owned natural gas utility after:(1) A commission order approving an application under § 23-3-201 et seq. or the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or a notice under § 23-18-104; or(2) A commission order approving any other application related to the siting or prudence of the decision to invest in the new strategic investments.
(1) A commission order approving an application under § 23-3-201 et seq. or the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq., or a notice under § 23-18-104; or
(2) A commission order approving any other application related to the siting or prudence of the decision to invest in the new strategic investments.
(b) (1) An investor-owned electric utility or an investor-owned natural gas utility may elect to file with the commission a rider to recover strategic investments that are not included in rates.(2) The investor-owned electric utility or the investor-owned natural gas utility shall provide notice to the Attorney General of the filing of the rider by the investor-owned electric utility or the investor-owned natural gas utility on the date the investor-owned electric utility or the investor-owned natural gas utility files the rider with the commission.
(1) An investor-owned electric utility or an investor-owned natural gas utility may elect to file with the commission a rider to recover strategic investments that are not included in rates.
(2) The investor-owned electric utility or the investor-owned natural gas utility shall provide notice to the Attorney General of the filing of the rider by the investor-owned electric utility or the investor-owned natural gas utility on the date the investor-owned electric utility or the investor-owned natural gas utility files the rider with the commission.
(c) (1) An investor-owned electric utility or an investor-owned natural gas utility may select the date of the first annual filing update, with all subsequent updates to be filed on or by the same day annually as the first filing update.(2) An investor-owned electric utility or an investor-owned natural gas utility shall provide notice to the Attorney General of the filing of the rider on the date the investor-owned electric utility or the investor-owned natural gas utility files each annual update to the rider with the commission.
(1) An investor-owned electric utility or an investor-owned natural gas utility may select the date of the first annual filing update, with all subsequent updates to be filed on or by the same day annually as the first filing update.
(2) An investor-owned electric utility or an investor-owned natural gas utility shall provide notice to the Attorney General of the filing of the rider on the date the investor-owned electric utility or the investor-owned natural gas utility files each annual update to the rider with the commission.
(d) For a rider under this subchapter, an investor-owned electric utility or an investor-owned natural gas utility shall use a rider test period.
(e) (1) Upon receipt of an investor-owned electric utility's or an investor-owned natural gas utility's filing to implement the rider rate schedule and each annual update under this subchapter, the commission shall issue an order approving the rider rate schedule and each annual update to recover strategic investments under this subchapter if the commission determines that the investor-owned electric utility's or the investor-owned natural gas utility's application complies with the provisions of this section.(2) (A) Unless the commission determines that approving the investor-owned electric utility's or the investor-owned natural gas utility's application for the rider and each annual update does not comply with this subchapter, the commission shall enter an order within ninety (90) calendar days following the date of the investor-owned electric utility's or the investor-owned natural gas utility's filing.(B) (i) If the commission determines that approving an application for approval of a rider rate schedule or annual update under this subchapter does not comply with this section, the commission shall enter an order denying the application.(ii) In the order entered by the commission under subdivision (e)(2)(B)(i) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its application that the commission deems to be insufficient.(C) Each annual update shall include, for the initial rider test year, the construction work in progress costs that will ultimately be capitalized on which the utility will earn a return, amounts that would otherwise be recorded as allowance for funds used during construction, and any expenses associated with the construction work in progress that will not be capitalized.(D) The commission shall verify the amounts included in each annual update reflect the amounts authorized for recovery under this subchapter.(E) The commission shall complete its review of each annual update filing and issue its order within ninety (90) days following the date of the annual update filing.(F) (i) If the investor-owned electric utility or the investor-owned natural gas utility submits an amended filing remedying the areas of noncompliance identified by the commission in its order, the commission shall enter an order approving the application within ten (10) calendar days following the date of the amended filing unless the commission finds that the filing does not comply with the provisions of this subchapter.(ii) If the commission finds that the amended filing does not remedy the areas of noncompliance, the commission shall enter an order denying the application.(iii) In the order issued under subdivision (e)(2)(F)(ii) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its notice or application that the commission deems to be insufficient.(G) The process outlined in subdivisions (e)(2)(B) and (F) of this section may continue until the commission finds that:(i) The investor-owned electric utility's or the investor-owned natural gas utility's application complies with this subchapter; or(ii) The investor-owned electric utility or the investor-owned natural gas utility withdraws its application or appeals the commission's decision under § 23-2-423.(H) If the commission fails to issue its order within the time frames stated in this section, the investor-owned electric utility's filing or the investor-owned natural gas utility's filing shall become effective by operation of law subject to completion of the commission's review under this subchapter.
(1) Upon receipt of an investor-owned electric utility's or an investor-owned natural gas utility's filing to implement the rider rate schedule and each annual update under this subchapter, the commission shall issue an order approving the rider rate schedule and each annual update to recover strategic investments under this subchapter if the commission determines that the investor-owned electric utility's or the investor-owned natural gas utility's application complies with the provisions of this section.
(2) (A) Unless the commission determines that approving the investor-owned electric utility's or the investor-owned natural gas utility's application for the rider and each annual update does not comply with this subchapter, the commission shall enter an order within ninety (90) calendar days following the date of the investor-owned electric utility's or the investor-owned natural gas utility's filing.(B) (i) If the commission determines that approving an application for approval of a rider rate schedule or annual update under this subchapter does not comply with this section, the commission shall enter an order denying the application.(ii) In the order entered by the commission under subdivision (e)(2)(B)(i) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its application that the commission deems to be insufficient.(C) Each annual update shall include, for the initial rider test year, the construction work in progress costs that will ultimately be capitalized on which the utility will earn a return, amounts that would otherwise be recorded as allowance for funds used during construction, and any expenses associated with the construction work in progress that will not be capitalized.(D) The commission shall verify the amounts included in each annual update reflect the amounts authorized for recovery under this subchapter.(E) The commission shall complete its review of each annual update filing and issue its order within ninety (90) days following the date of the annual update filing.(F) (i) If the investor-owned electric utility or the investor-owned natural gas utility submits an amended filing remedying the areas of noncompliance identified by the commission in its order, the commission shall enter an order approving the application within ten (10) calendar days following the date of the amended filing unless the commission finds that the filing does not comply with the provisions of this subchapter.(ii) If the commission finds that the amended filing does not remedy the areas of noncompliance, the commission shall enter an order denying the application.(iii) In the order issued under subdivision (e)(2)(F)(ii) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its notice or application that the commission deems to be insufficient.(G) The process outlined in subdivisions (e)(2)(B) and (F) of this section may continue until the commission finds that:(i) The investor-owned electric utility's or the investor-owned natural gas utility's application complies with this subchapter; or(ii) The investor-owned electric utility or the investor-owned natural gas utility withdraws its application or appeals the commission's decision under § 23-2-423.(H) If the commission fails to issue its order within the time frames stated in this section, the investor-owned electric utility's filing or the investor-owned natural gas utility's filing shall become effective by operation of law subject to completion of the commission's review under this subchapter.
(A) Unless the commission determines that approving the investor-owned electric utility's or the investor-owned natural gas utility's application for the rider and each annual update does not comply with this subchapter, the commission shall enter an order within ninety (90) calendar days following the date of the investor-owned electric utility's or the investor-owned natural gas utility's filing.
(B) (i) If the commission determines that approving an application for approval of a rider rate schedule or annual update under this subchapter does not comply with this section, the commission shall enter an order denying the application.(ii) In the order entered by the commission under subdivision (e)(2)(B)(i) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its application that the commission deems to be insufficient.
(i) If the commission determines that approving an application for approval of a rider rate schedule or annual update under this subchapter does not comply with this section, the commission shall enter an order denying the application.
(ii) In the order entered by the commission under subdivision (e)(2)(B)(i) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its application that the commission deems to be insufficient.
(a) The basis for the commission's findings; and
(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its application that the commission deems to be insufficient.
(C) Each annual update shall include, for the initial rider test year, the construction work in progress costs that will ultimately be capitalized on which the utility will earn a return, amounts that would otherwise be recorded as allowance for funds used during construction, and any expenses associated with the construction work in progress that will not be capitalized.
(D) The commission shall verify the amounts included in each annual update reflect the amounts authorized for recovery under this subchapter.
(E) The commission shall complete its review of each annual update filing and issue its order within ninety (90) days following the date of the annual update filing.
(F) (i) If the investor-owned electric utility or the investor-owned natural gas utility submits an amended filing remedying the areas of noncompliance identified by the commission in its order, the commission shall enter an order approving the application within ten (10) calendar days following the date of the amended filing unless the commission finds that the filing does not comply with the provisions of this subchapter.(ii) If the commission finds that the amended filing does not remedy the areas of noncompliance, the commission shall enter an order denying the application.(iii) In the order issued under subdivision (e)(2)(F)(ii) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its notice or application that the commission deems to be insufficient.
(i) If the investor-owned electric utility or the investor-owned natural gas utility submits an amended filing remedying the areas of noncompliance identified by the commission in its order, the commission shall enter an order approving the application within ten (10) calendar days following the date of the amended filing unless the commission finds that the filing does not comply with the provisions of this subchapter.
(ii) If the commission finds that the amended filing does not remedy the areas of noncompliance, the commission shall enter an order denying the application.
(iii) In the order issued under subdivision (e)(2)(F)(ii) of this section, the commission shall discuss:(a) The basis for the commission's findings; and(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its notice or application that the commission deems to be insufficient.
(a) The basis for the commission's findings; and
(b) Any evidence or other information submitted by the investor-owned electric utility or the investor-owned natural gas utility as part of its notice or application that the commission deems to be insufficient.
(G) The process outlined in subdivisions (e)(2)(B) and (F) of this section may continue until the commission finds that:(i) The investor-owned electric utility's or the investor-owned natural gas utility's application complies with this subchapter; or(ii) The investor-owned electric utility or the investor-owned natural gas utility withdraws its application or appeals the commission's decision under § 23-2-423.
(i) The investor-owned electric utility's or the investor-owned natural gas utility's application complies with this subchapter; or
(ii) The investor-owned electric utility or the investor-owned natural gas utility withdraws its application or appeals the commission's decision under § 23-2-423.
(H) If the commission fails to issue its order within the time frames stated in this section, the investor-owned electric utility's filing or the investor-owned natural gas utility's filing shall become effective by operation of law subject to completion of the commission's review under this subchapter.
(f) (1) At the election of the investor-owned electric utility or the investor-owned natural gas utility, strategic investments shall be recovered through the rider, separate from the investor-owned electric utility's or the investor-owned natural gas utility's formula rate plan implemented under the Formula Rate Review Act, § 23-4-1201 et seq., any other rider, or otherwise as part of the investor-owned electric utility's or the investor-owned natural gas utility's rates approved by the commission.(2) If elected by an investor-owned electric utility or an investor-owned natural gas utility, the rider shall remain in effect under this subchapter until the investor-owned electric utility or the investor-owned natural gas utility decides to withdraw the rider with respect to future cost recovery for strategic investments to be made after the date of the withdrawal.
(1) At the election of the investor-owned electric utility or the investor-owned natural gas utility, strategic investments shall be recovered through the rider, separate from the investor-owned electric utility's or the investor-owned natural gas utility's formula rate plan implemented under the Formula Rate Review Act, § 23-4-1201 et seq., any other rider, or otherwise as part of the investor-owned electric utility's or the investor-owned natural gas utility's rates approved by the commission.
(2) If elected by an investor-owned electric utility or an investor-owned natural gas utility, the rider shall remain in effect under this subchapter until the investor-owned electric utility or the investor-owned natural gas utility decides to withdraw the rider with respect to future cost recovery for strategic investments to be made after the date of the withdrawal.
(g) For the purposes of calculating rates to recover the costs of strategic investments, including rates implemented through an individual customer contract, the commission shall ensure that the rates charged to customers recover the costs of strategic investments in a manner that is consistent with applicable law and in the public interest.
(h) (1) An amount collected through the rider under this subchapter shall be collected subject to refunds pending the completion of the commission's review under this subchapter.(2) At any time during the process, if the commission finds that any costs were not prudently incurred, the commission shall order that the costs that were not prudently incurred be refunded to customers through bill credits.
(1) An amount collected through the rider under this subchapter shall be collected subject to refunds pending the completion of the commission's review under this subchapter.
(2) At any time during the process, if the commission finds that any costs were not prudently incurred, the commission shall order that the costs that were not prudently incurred be refunded to customers through bill credits.
(i) The rider elected by an investor-owned electric utility or an investor-owned natural gas utility under this subchapter to recover strategic investments is a revenue requirement rider and shall provide return on construction work in progress plus operating expenses during construction and return on rate base plus operating expenses once complete and in service.
(j) (1) An investor-owned electric utility or an investor-owned natural gas utility shall not accrue an allowance for funds used during construction for strategic investments with costs recovered through the rider.(2) Instead, the commission shall authorize an investor-owned electric utility or an investor-owned natural gas utility to earn a return through the rider under this subchapter on any construction work in progress.
(1) An investor-owned electric utility or an investor-owned natural gas utility shall not accrue an allowance for funds used during construction for strategic investments with costs recovered through the rider.
(2) Instead, the commission shall authorize an investor-owned electric utility or an investor-owned natural gas utility to earn a return through the rider under this subchapter on any construction work in progress.
(k) The commission shall authorize an investor-owned electric utility or an investor-owned natural gas utility to recover through the rider filed under this subchapter any expenses associated with the construction of strategic investments that will not be capitalized.
(l) In calculating construction work in progress, including actual costs and any projections, the investor-owned electric utility or the investor-owned natural gas utility shall base all amounts on year-end information not subject to averaging beginning-of-year or end-of-year balances.
(m) (1) (A) During the construction of strategic investments included in the rider, an investor-owned electric utility or an investor-owned natural gas utility shall include in the capital structure only short-term debt, long-term debt, and equity.(B) The investor-owned electric utility or the investor-owned natural gas utility shall base the balances of those items under subdivision (m)(1)(A) of this section on the investor-owned electric utility's or the investor-owned natural gas utility's actual capital structure with a minimum equity percentage of thirty percent (30%) and a maximum equity percentage of fifty percent (50%).(C) During the construction of strategic investments, the commission shall not require an investor-owned electric utility or an investor-owned natural gas utility that is electing to utilize a rider under this subchapter to include in the capital structure of the rider other items, including current, accrued, or other liabilities or accumulated deferred income taxes.(D) For the purposes of the rider, the cost of debt used in calculating the cost of capital shall be the cost of short-term debt and the cost of long-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or formula rate plan annual filing.(2) For any strategic investment included in the rider under this section that is complete and in service, the investor-owned electric utility or the investor-owned natural gas utility shall use the capital structure and overall rate of return that was approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or annual formula rate plan filing.
(1) (A) During the construction of strategic investments included in the rider, an investor-owned electric utility or an investor-owned natural gas utility shall include in the capital structure only short-term debt, long-term debt, and equity.(B) The investor-owned electric utility or the investor-owned natural gas utility shall base the balances of those items under subdivision (m)(1)(A) of this section on the investor-owned electric utility's or the investor-owned natural gas utility's actual capital structure with a minimum equity percentage of thirty percent (30%) and a maximum equity percentage of fifty percent (50%).(C) During the construction of strategic investments, the commission shall not require an investor-owned electric utility or an investor-owned natural gas utility that is electing to utilize a rider under this subchapter to include in the capital structure of the rider other items, including current, accrued, or other liabilities or accumulated deferred income taxes.(D) For the purposes of the rider, the cost of debt used in calculating the cost of capital shall be the cost of short-term debt and the cost of long-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or formula rate plan annual filing.
(A) During the construction of strategic investments included in the rider, an investor-owned electric utility or an investor-owned natural gas utility shall include in the capital structure only short-term debt, long-term debt, and equity.
(B) The investor-owned electric utility or the investor-owned natural gas utility shall base the balances of those items under subdivision (m)(1)(A) of this section on the investor-owned electric utility's or the investor-owned natural gas utility's actual capital structure with a minimum equity percentage of thirty percent (30%) and a maximum equity percentage of fifty percent (50%).
(C) During the construction of strategic investments, the commission shall not require an investor-owned electric utility or an investor-owned natural gas utility that is electing to utilize a rider under this subchapter to include in the capital structure of the rider other items, including current, accrued, or other liabilities or accumulated deferred income taxes.
(D) For the purposes of the rider, the cost of debt used in calculating the cost of capital shall be the cost of short-term debt and the cost of long-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or formula rate plan annual filing.
(2) For any strategic investment included in the rider under this section that is complete and in service, the investor-owned electric utility or the investor-owned natural gas utility shall use the capital structure and overall rate of return that was approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or annual formula rate plan filing.
(n) For the purpose of the rider, the return on equity used in calculating the cost of capital shall be set at the return on equity approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding.
(o) (1) On the strategic investments' being complete and in service, the commission shall authorize the investor-owned electric utility or the investor-owned natural gas utility to earn a fair and reasonable return through the rider on any capitalized costs for the strategic investments.(2) Once the strategic investments go into service, the commission shall authorize the investor-owned electric utility or the investor-owned natural gas utility to recover through the rider any on-going expenses associated with the strategic investments.(3) In the investor-owned electric utility's or the investor-owned natural gas utility's next general rate case proceeding, the commission shall allow the investor-owned electric utility or the investor-owned natural gas utility to include any capitalized amounts and associated expenses for completed strategic investments in its base rates.(4) (A) In the investor-owned electric utility's or the investor-owned natural gas utility's next general rate case proceeding, the investor-owned electric utility or the investor-owned natural gas utility shall move any amounts for any completed strategic investments from the rider into base rates.(B) The investor-owned electric utility or the investor-owned natural gas utility shall continue to recover through the rider implemented under this subchapter the costs and expenses associated with any strategic investments that are not complete and in service.
(1) On the strategic investments' being complete and in service, the commission shall authorize the investor-owned electric utility or the investor-owned natural gas utility to earn a fair and reasonable return through the rider on any capitalized costs for the strategic investments.
(2) Once the strategic investments go into service, the commission shall authorize the investor-owned electric utility or the investor-owned natural gas utility to recover through the rider any on-going expenses associated with the strategic investments.
(3) In the investor-owned electric utility's or the investor-owned natural gas utility's next general rate case proceeding, the commission shall allow the investor-owned electric utility or the investor-owned natural gas utility to include any capitalized amounts and associated expenses for completed strategic investments in its base rates.
(4) (A) In the investor-owned electric utility's or the investor-owned natural gas utility's next general rate case proceeding, the investor-owned electric utility or the investor-owned natural gas utility shall move any amounts for any completed strategic investments from the rider into base rates.(B) The investor-owned electric utility or the investor-owned natural gas utility shall continue to recover through the rider implemented under this subchapter the costs and expenses associated with any strategic investments that are not complete and in service.
(A) In the investor-owned electric utility's or the investor-owned natural gas utility's next general rate case proceeding, the investor-owned electric utility or the investor-owned natural gas utility shall move any amounts for any completed strategic investments from the rider into base rates.
(B) The investor-owned electric utility or the investor-owned natural gas utility shall continue to recover through the rider implemented under this subchapter the costs and expenses associated with any strategic investments that are not complete and in service.
(p) The revenues from the rider shall be included in calculating the maximum amount of revenue increase or decrease under § 23-4-1207(d) for any formula rate plan implemented under the Formula Rate Review Act, § 23-4-1201 et seq., but shall otherwise be excluded from the revenues included in a formula rate plan under the Formula Rate Review Act, § 23-4-1201 et seq., for an investor-owned electric utility or an investor-owned natural gas utility.
(q) (1) For any excess accumulated deferred income tax associated with strategic investments, the commission shall:(A) Authorize the investor-owned electric utility or the investor-owned natural gas utility to apply the excess deferred income taxes to offset the investor-owned electric utility's or the investor-owned natural gas utility's rate base used in calculating its rates; or(B) Apply the excess deferred income taxes as a credit to customer bills.(2) The commission shall determine which form and the timing of applying the accumulated deferred income taxes under this subsection is in the public interest.
(1) For any excess accumulated deferred income tax associated with strategic investments, the commission shall:(A) Authorize the investor-owned electric utility or the investor-owned natural gas utility to apply the excess deferred income taxes to offset the investor-owned electric utility's or the investor-owned natural gas utility's rate base used in calculating its rates; or(B) Apply the excess deferred income taxes as a credit to customer bills.
(A) Authorize the investor-owned electric utility or the investor-owned natural gas utility to apply the excess deferred income taxes to offset the investor-owned electric utility's or the investor-owned natural gas utility's rate base used in calculating its rates; or
(B) Apply the excess deferred income taxes as a credit to customer bills.
(2) The commission shall determine which form and the timing of applying the accumulated deferred income taxes under this subsection is in the public interest.
(r) The commission shall authorize the investor-owned electric utility or the investor-owned natural gas utility to monetize or apply any tax credits or other tax incentives, including without limitation investment tax credits and production tax credits, where possible to reduce the cost of constructing or acquiring any strategic investments to benefit customers of an investor-owned electric utility or an investor-owned natural gas utility.
(s) (1) The investor-owned electric utility or the investor-owned natural gas utility shall seek federal funds and loan programs to reduce the cost of constructing, acquiring, and financing strategic investments if possible, appropriate, and available to reduce the cost of constructing or acquiring any strategic investments.(2) If an investor-owned electric utility or an investor-owned natural gas utility requests and receives federal funding to support constructing or acquiring strategic investments, the applicable amount of federal funding shall be deducted from the value of the strategic investments that are capitalized and recoverable through rates charged to customers of an investor-owned electric utility or an investor-owned natural gas utility.
(1) The investor-owned electric utility or the investor-owned natural gas utility shall seek federal funds and loan programs to reduce the cost of constructing, acquiring, and financing strategic investments if possible, appropriate, and available to reduce the cost of constructing or acquiring any strategic investments.
(2) If an investor-owned electric utility or an investor-owned natural gas utility requests and receives federal funding to support constructing or acquiring strategic investments, the applicable amount of federal funding shall be deducted from the value of the strategic investments that are capitalized and recoverable through rates charged to customers of an investor-owned electric utility or an investor-owned natural gas utility.
(t) (1) If an investor-owned electric utility or an investor-owned natural gas utility, with rates regulated under the Formula Rate Review Act, § 23-4-1201 et seq., has a return on equity above the return on the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding, plus five-tenths percent (0.5%), and would otherwise be required to provide credits to a customer's bill, the investor-owned electric utility or the investor-owned natural gas utility shall not be required to adjust rates and provide credits to customers that may otherwise be required under § 23-4-1207(b) if the investor-owned electric utility or the investor-owned natural gas utility has strategic investments under construction in an amount equal to or greater than the amount above the return on equity approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding, plus five-tenths percent (0.5%).(2) For an investor-owned electric utility or an investor-owned natural gas utility, with rates regulated under the Formula Rate Review Act, § 23-4-1201 et seq., the commission shall not require a reduction of rates to the investor-owned electric utility's or the investor-owned natural gas utility's authorized rate of return, or reduce the investor-owned electric utility's or the investor-owned natural gas utility's target rate of return under § 23-4-1207(b) for any formula rate plan mechanism under the Formula Rate Review Act, § 23-4-1201 et seq., if an investor-owned electric utility or an investor-owned natural gas utility has strategic investments under construction in an amount equal to or greater than the level of earnings above the investor-owned electric utility's or the investor-owned natural gas utility's authorized rate of return or the investor-owned electric utility's or the investor-owned natural gas utility's target rate of return under § 23-4-1207(b) for any formula rate plan mechanism implemented under the Formula Rate Review Act, § 23-4-1201 et seq.(3) (A) The investor-owned electric utility or the investor-owned natural gas utility shall first apply any amounts identified in subdivisions (t)(1) and (2) of this section to strategic investments under construction.(B) (i) The commission may authorize the investor-owned electric utility or the investor-owned natural gas utility to record any amounts identified in subdivisions (t)(1) and (2) of this section and designate those amounts to offset the cost of approved strategic investments not yet under construction if the commission determines that doing so is in the public interest.(ii) If the commission authorizes recording any amounts for the projects described in subdivision (t)(3)(B)(i) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall deduct interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's last general rate case proceeding from any amounts recorded until those amounts are applied to offset the cost of strategic investments.(C) The investor-owned electric utility or the investor-owned natural gas utility shall provide credits to customers equal to any remaining amounts identified in subdivisions (t)(1) and (2) of this section as required under § 23-4-1207(b), plus interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or annual formula rate plan filing.
(1) If an investor-owned electric utility or an investor-owned natural gas utility, with rates regulated under the Formula Rate Review Act, § 23-4-1201 et seq., has a return on equity above the return on the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding, plus five-tenths percent (0.5%), and would otherwise be required to provide credits to a customer's bill, the investor-owned electric utility or the investor-owned natural gas utility shall not be required to adjust rates and provide credits to customers that may otherwise be required under § 23-4-1207(b) if the investor-owned electric utility or the investor-owned natural gas utility has strategic investments under construction in an amount equal to or greater than the amount above the return on equity approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding, plus five-tenths percent (0.5%).
(2) For an investor-owned electric utility or an investor-owned natural gas utility, with rates regulated under the Formula Rate Review Act, § 23-4-1201 et seq., the commission shall not require a reduction of rates to the investor-owned electric utility's or the investor-owned natural gas utility's authorized rate of return, or reduce the investor-owned electric utility's or the investor-owned natural gas utility's target rate of return under § 23-4-1207(b) for any formula rate plan mechanism under the Formula Rate Review Act, § 23-4-1201 et seq., if an investor-owned electric utility or an investor-owned natural gas utility has strategic investments under construction in an amount equal to or greater than the level of earnings above the investor-owned electric utility's or the investor-owned natural gas utility's authorized rate of return or the investor-owned electric utility's or the investor-owned natural gas utility's target rate of return under § 23-4-1207(b) for any formula rate plan mechanism implemented under the Formula Rate Review Act, § 23-4-1201 et seq.
(3) (A) The investor-owned electric utility or the investor-owned natural gas utility shall first apply any amounts identified in subdivisions (t)(1) and (2) of this section to strategic investments under construction.(B) (i) The commission may authorize the investor-owned electric utility or the investor-owned natural gas utility to record any amounts identified in subdivisions (t)(1) and (2) of this section and designate those amounts to offset the cost of approved strategic investments not yet under construction if the commission determines that doing so is in the public interest.(ii) If the commission authorizes recording any amounts for the projects described in subdivision (t)(3)(B)(i) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall deduct interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's last general rate case proceeding from any amounts recorded until those amounts are applied to offset the cost of strategic investments.(C) The investor-owned electric utility or the investor-owned natural gas utility shall provide credits to customers equal to any remaining amounts identified in subdivisions (t)(1) and (2) of this section as required under § 23-4-1207(b), plus interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or annual formula rate plan filing.
(A) The investor-owned electric utility or the investor-owned natural gas utility shall first apply any amounts identified in subdivisions (t)(1) and (2) of this section to strategic investments under construction.
(B) (i) The commission may authorize the investor-owned electric utility or the investor-owned natural gas utility to record any amounts identified in subdivisions (t)(1) and (2) of this section and designate those amounts to offset the cost of approved strategic investments not yet under construction if the commission determines that doing so is in the public interest.(ii) If the commission authorizes recording any amounts for the projects described in subdivision (t)(3)(B)(i) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall deduct interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's last general rate case proceeding from any amounts recorded until those amounts are applied to offset the cost of strategic investments.
(i) The commission may authorize the investor-owned electric utility or the investor-owned natural gas utility to record any amounts identified in subdivisions (t)(1) and (2) of this section and designate those amounts to offset the cost of approved strategic investments not yet under construction if the commission determines that doing so is in the public interest.
(ii) If the commission authorizes recording any amounts for the projects described in subdivision (t)(3)(B)(i) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall deduct interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's last general rate case proceeding from any amounts recorded until those amounts are applied to offset the cost of strategic investments.
(C) The investor-owned electric utility or the investor-owned natural gas utility shall provide credits to customers equal to any remaining amounts identified in subdivisions (t)(1) and (2) of this section as required under § 23-4-1207(b), plus interest at a rate equal to the cost of short-term debt approved in the investor-owned electric utility's or the investor-owned natural gas utility's most recent general rate case proceeding or annual formula rate plan filing.
(u) Except as otherwise provided in this subchapter, this section does not alter the powers and authority of the commission.
(v) A commission review of the expenditures associated with strategic investments included in the rider, including evaluating whether or not any costs or expenses are reasonable and prudently incurred, shall be completed within twelve (12) calendar months after the date upon which the investor-owned electric utility or the investor-owned natural gas utility provides notice that the strategic investments are complete and in service.
(w) An expenditure associated with strategic investments for which an application for approval is pending before the commission as of March 20, 2025, shall be eligible for recovery through the rider under this subchapter if:(1) The costs are not otherwise included in rates approved by the commission before March 20, 2025;(2) The investor-owned electric utility or the investor-owned natural gas utility has an application pending that was filed before March 20, 2025, for approval:(A) To construct a power generation facility outside of the state under § 23-18-104;(B) To obtain a certificate of environmental compatibility and public need under the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq.;(C) To obtain a certificate of public convenience and necessity under § 23-3-201 et seq.; or(D) For any other application related to the siting or prudence of the decision to invest in the new strategic investments; and(3) The commission enters an order after January 1, 2025, approving an application that was filed before March 20, 2025, for approval:(A) To construct a power generation facility outside of the state under § 23-18-104;(B) To obtain a certificate of environmental compatibility and public need under the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq.;(C) To obtain a certificate of public convenience and necessity under § 23-3-201 et seq.; or(D) For any other application related to the siting or prudence of the decision to invest in the new strategic investments.
(1) The costs are not otherwise included in rates approved by the commission before March 20, 2025;
(2) The investor-owned electric utility or the investor-owned natural gas utility has an application pending that was filed before March 20, 2025, for approval:(A) To construct a power generation facility outside of the state under § 23-18-104;(B) To obtain a certificate of environmental compatibility and public need under the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq.;(C) To obtain a certificate of public convenience and necessity under § 23-3-201 et seq.; or(D) For any other application related to the siting or prudence of the decision to invest in the new strategic investments; and
(A) To construct a power generation facility outside of the state under § 23-18-104;
(B) To obtain a certificate of environmental compatibility and public need under the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq.;
(C) To obtain a certificate of public convenience and necessity under § 23-3-201 et seq.; or
(D) For any other application related to the siting or prudence of the decision to invest in the new strategic investments; and
(3) The commission enters an order after January 1, 2025, approving an application that was filed before March 20, 2025, for approval:(A) To construct a power generation facility outside of the state under § 23-18-104;(B) To obtain a certificate of environmental compatibility and public need under the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq.;(C) To obtain a certificate of public convenience and necessity under § 23-3-201 et seq.; or(D) For any other application related to the siting or prudence of the decision to invest in the new strategic investments.
(A) To construct a power generation facility outside of the state under § 23-18-104;
(B) To obtain a certificate of environmental compatibility and public need under the Utility Facility Environmental and Economic Protection Act, § 23-18-501 et seq.;
(C) To obtain a certificate of public convenience and necessity under § 23-3-201 et seq.; or
(D) For any other application related to the siting or prudence of the decision to invest in the new strategic investments.
(x) (1) If a customer pays or multiple customers pay for a portion of any strategic investments through a contribution in aid of construction or through other form of payment, the strategic investments shall continue to be considered strategic investments and classified as part of the investor-owned electric utility's or the investor-owned natural gas utility's retail assets and recoverable through the investor-owned electric utility's or the investor-owned natural gas utility's retail rates, either in the base rates of the investor-owned electric utility or the investor-owned natural gas utility, through a rider under this subchapter, or rates otherwise approved by the commission.(2) (A) A payment by a customer or customers for any portion of any strategic investments through a contribution in aid of construction shall be deducted from the cost of the strategic investments capitalized and recovered through rates.(B) A payment by a customer or customers through any other forms of payment shall be recorded for ratemaking purposes, when the strategic investments are first included in rates and shall be recognized as payment over a period not to exceed the life of the strategic investments, in a manner that provides comparable benefits for other customers over the life of the strategic investments.
(1) If a customer pays or multiple customers pay for a portion of any strategic investments through a contribution in aid of construction or through other form of payment, the strategic investments shall continue to be considered strategic investments and classified as part of the investor-owned electric utility's or the investor-owned natural gas utility's retail assets and recoverable through the investor-owned electric utility's or the investor-owned natural gas utility's retail rates, either in the base rates of the investor-owned electric utility or the investor-owned natural gas utility, through a rider under this subchapter, or rates otherwise approved by the commission.
(2) (A) A payment by a customer or customers for any portion of any strategic investments through a contribution in aid of construction shall be deducted from the cost of the strategic investments capitalized and recovered through rates.(B) A payment by a customer or customers through any other forms of payment shall be recorded for ratemaking purposes, when the strategic investments are first included in rates and shall be recognized as payment over a period not to exceed the life of the strategic investments, in a manner that provides comparable benefits for other customers over the life of the strategic investments.
(A) A payment by a customer or customers for any portion of any strategic investments through a contribution in aid of construction shall be deducted from the cost of the strategic investments capitalized and recovered through rates.
(B) A payment by a customer or customers through any other forms of payment shall be recorded for ratemaking purposes, when the strategic investments are first included in rates and shall be recognized as payment over a period not to exceed the life of the strategic investments, in a manner that provides comparable benefits for other customers over the life of the strategic investments.