(a) An investor-owned electric utility or an investor-owned natural gas utility electing to file with the Arkansas Public Service Commission a rider to recover strategic investments that are not otherwise included in rates previously approved by the commission may file an application to implement the rider any time within twelve (12) months after:(1) The commission enters an 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) Any other application related to the siting or prudence of the decision to invest in strategic investments.
(1) The commission enters an 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) Any other application related to the siting or prudence of the decision to invest in strategic investments.
(b) (1) An investor-owned electric utility or an investor-owned natural gas utility shall file:(A) An annual update to the rider to reflect the annual expenditures; and(B) An update to any projections included in the rider to recover strategic investments.(2) An investor-owned electric utility's or an investor-owned natural gas utility's recovery through the rider shall be limited to the amounts identified by the investor-owned electric utility or the investor-owned natural gas utility in the proceeding in which the commission approved the strategic investments unless a greater amount is subsequently authorized by the commission.
(1) An investor-owned electric utility or an investor-owned natural gas utility shall file:(A) An annual update to the rider to reflect the annual expenditures; and(B) An update to any projections included in the rider to recover strategic investments.
(A) An annual update to the rider to reflect the annual expenditures; and
(B) An update to any projections included in the rider to recover strategic investments.
(2) An investor-owned electric utility's or an investor-owned natural gas utility's recovery through the rider shall be limited to the amounts identified by the investor-owned electric utility or the investor-owned natural gas utility in the proceeding in which the commission approved the strategic investments unless a greater amount is subsequently authorized by the commission.
(c) The annual update required under subsection (b) of this section shall include the information stated in subsections (a) and (b) of this section for strategic investments following subsequent commission orders approving strategic investments.
(d) An investor-owned electric utility or an investor-owned natural gas utility shall immediately notify the commission of any significant delays or material changes in the construction schedule to include any strategic investments that are abandoned before completion or for which construction has been indefinitely suspended or material changes in costs of any strategic investments recovered through the rider under this subsection.
(e) (1) An investor-owned electric utility or an investor-owned natural gas utility shall remove the cost of any strategic investments that are abandoned before completion or for which construction has been indefinitely suspended from the rider unless the commission determines, based on substantial evidence provided by the investor-owned electric utility or the investor-owned natural gas utility, that:(A) The costs were reasonable and prudently incurred at the time the costs were incurred;(B) Continued recovery through the rider remains reasonable;(C) The circumstance of the abandonment before completion or indefinite construction suspension is reasonable; and(D) Recovery of those costs is in the public interest.(2) Upon removal of any costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended, the investor-owned electric utility or the investor-owned natural gas utility may seek recovery of those costs through rates if the commission determines, based on substantial evidence provided by the investor-owned electric utility or the investor-owned natural gas utility, that:(A) The costs were reasonable and prudently incurred at the time those costs were incurred;(B) The circumstance of the abandonment before completion or indefinite construction suspension is reasonable; and(C) Recovery of those costs is in the public interest.(3) (A) An investor-owned electric utility or an investor-owned natural gas utility may request recovery of any costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended if the costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended are removed from recovery through the rider in a separate proceeding.(B) Upon receipt of a request for recovery of costs under subdivision (e)(3)(A) of this section, the commission shall determine:(i) Whether recovery of those costs is in the public interest; and(ii) The form and timing of recovery through rates charged to customers.
(1) An investor-owned electric utility or an investor-owned natural gas utility shall remove the cost of any strategic investments that are abandoned before completion or for which construction has been indefinitely suspended from the rider unless the commission determines, based on substantial evidence provided by the investor-owned electric utility or the investor-owned natural gas utility, that:(A) The costs were reasonable and prudently incurred at the time the costs were incurred;(B) Continued recovery through the rider remains reasonable;(C) The circumstance of the abandonment before completion or indefinite construction suspension is reasonable; and(D) Recovery of those costs is in the public interest.
(A) The costs were reasonable and prudently incurred at the time the costs were incurred;
(B) Continued recovery through the rider remains reasonable;
(C) The circumstance of the abandonment before completion or indefinite construction suspension is reasonable; and
(D) Recovery of those costs is in the public interest.
(2) Upon removal of any costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended, the investor-owned electric utility or the investor-owned natural gas utility may seek recovery of those costs through rates if the commission determines, based on substantial evidence provided by the investor-owned electric utility or the investor-owned natural gas utility, that:(A) The costs were reasonable and prudently incurred at the time those costs were incurred;(B) The circumstance of the abandonment before completion or indefinite construction suspension is reasonable; and(C) Recovery of those costs is in the public interest.
(A) The costs were reasonable and prudently incurred at the time those costs were incurred;
(B) The circumstance of the abandonment before completion or indefinite construction suspension is reasonable; and
(C) Recovery of those costs is in the public interest.
(3) (A) An investor-owned electric utility or an investor-owned natural gas utility may request recovery of any costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended if the costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended are removed from recovery through the rider in a separate proceeding.(B) Upon receipt of a request for recovery of costs under subdivision (e)(3)(A) of this section, the commission shall determine:(i) Whether recovery of those costs is in the public interest; and(ii) The form and timing of recovery through rates charged to customers.
(A) An investor-owned electric utility or an investor-owned natural gas utility may request recovery of any costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended if the costs for strategic investments that are abandoned before completion or for which construction has been indefinitely suspended are removed from recovery through the rider in a separate proceeding.
(B) Upon receipt of a request for recovery of costs under subdivision (e)(3)(A) of this section, the commission shall determine:(i) Whether recovery of those costs is in the public interest; and(ii) The form and timing of recovery through rates charged to customers.
(i) Whether recovery of those costs is in the public interest; and
(ii) The form and timing of recovery through rates charged to customers.
(f) (1) (A) Except as provided in subdivision (f)(2)(D)(i) of this section, an investor-owned electric utility's or an investor-owned natural gas utility's total amount of revenue increase from an annual update to the rider under this subchapter shall not result in the investor-owned electric utility's or the investor-owned natural gas utility's rates exceeding a level ten percent (10%) below the national average for all sectors.(B) For this comparison, the rates under subdivision (f)(1)(A) of this section shall be calculated using:(i) The same method as that used by the United States Energy Information Administration and published in its most recent edition of the Electric Power Annual report for electric utilities, as adopted by the commission by rule, or the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule; and(ii) Data from the same calendar year as the United States Energy Information Administration's publication to which the investor-owned electric utility's or the investor-owned natural gas utility's revenue increase is compared.(C) If the commission finds that the investor-owned electric utility or the investor-owned natural gas utility provides substantial evidence to the commission demonstrating that its rates will remain capable of attracting or retaining economic development opportunities for the state even if the rates exceed ten percent (10%) below national average and that doing so is in the public interest, then the commission shall approve each revenue increase.(2) (A) If the commission approves a revenue increase for an investor-owned electric utility or an investor-owned natural gas utility from an annual update to the rider under this subchapter that results in the investor-owned electric utility's or the investor-owned natural gas utility's rates exceeding a level ten percent (10%) below the national average, the commission shall submit a letter to the cochairs of the Legislative Council notifying the General Assembly that the commission has approved a revenue increase for an investor-owned electric utility or investor-owned natural gas utility from an annual update to the rider under this subchapter that has resulted in an investor-owned electric utility's or an investor-owned natural gas utility's total rates inclusive of all riders exceeding a level ten percent (10%) below the national average.(B) Unless the commission approves an increase in the total amount of revenue increase from an annual update to the rider under this subchapter that exceeds a level ten percent (10%) below the national average for all sectors under subdivision (f)(2)(A) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall adjust its annual update to the rider under subsections (a)-(d) of this section to include only a revenue increase that results in rates that are ten percent (10%) below the national average.(C) The commission shall verify that an annual update to the rider under subsections (a)-(d) of this section does not include a revenue increase that results in rates exceeding a level ten percent (10%) below the national average unless it authorizes a greater amount under subdivision (f)(1)(A) of this section.(D) (i) If an investor-owned natural gas utility's rates are above the national average for all sectors calculated using the same method as that used by the United States Energy Information Administration and published in its most recent edition of the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule, and calculated using data from the same calendar year as the United States Energy Information Administration publication to which the investor-owned natural gas utility's revenue increase is compared, the total amount of revenue increase or decrease for an investor-owned natural gas utility from an annual update to the rider under this subchapter shall not exceed four percent (4%) of each rate class's total revenue.(ii) If a conflict exists between subdivision (f)(1) of this section and subdivision (f)(2)(D)(i) of this section, subdivision (f)(2)(D)(i) of this section shall control.(E) The commission shall submit an annual report to the Legislative Council describing:(i) The strategic investments included in the rider for an investor-owned electric utility or an investor-owned natural gas utility; and(ii) The change in rates resulting from the investor-owned electric utility's and the investor-owned natural gas utility's annual update to the rider under this subchapter on the investor-owned electric utility's or the investor-owned natural gas utility's rates.(3) An investor-owned electric utility shall submit an annual report to the commission describing its generation portfolio mix based on the generation capacity mix and on the energy mix.(4) The commission shall submit an annual report to the Legislative Council describing the generation portfolio mix based on the generation capacity mix and based on the energy mix for each investor-owned electric utility.
(1) (A) Except as provided in subdivision (f)(2)(D)(i) of this section, an investor-owned electric utility's or an investor-owned natural gas utility's total amount of revenue increase from an annual update to the rider under this subchapter shall not result in the investor-owned electric utility's or the investor-owned natural gas utility's rates exceeding a level ten percent (10%) below the national average for all sectors.(B) For this comparison, the rates under subdivision (f)(1)(A) of this section shall be calculated using:(i) The same method as that used by the United States Energy Information Administration and published in its most recent edition of the Electric Power Annual report for electric utilities, as adopted by the commission by rule, or the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule; and(ii) Data from the same calendar year as the United States Energy Information Administration's publication to which the investor-owned electric utility's or the investor-owned natural gas utility's revenue increase is compared.(C) If the commission finds that the investor-owned electric utility or the investor-owned natural gas utility provides substantial evidence to the commission demonstrating that its rates will remain capable of attracting or retaining economic development opportunities for the state even if the rates exceed ten percent (10%) below national average and that doing so is in the public interest, then the commission shall approve each revenue increase.
(A) Except as provided in subdivision (f)(2)(D)(i) of this section, an investor-owned electric utility's or an investor-owned natural gas utility's total amount of revenue increase from an annual update to the rider under this subchapter shall not result in the investor-owned electric utility's or the investor-owned natural gas utility's rates exceeding a level ten percent (10%) below the national average for all sectors.
(B) For this comparison, the rates under subdivision (f)(1)(A) of this section shall be calculated using:(i) The same method as that used by the United States Energy Information Administration and published in its most recent edition of the Electric Power Annual report for electric utilities, as adopted by the commission by rule, or the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule; and(ii) Data from the same calendar year as the United States Energy Information Administration's publication to which the investor-owned electric utility's or the investor-owned natural gas utility's revenue increase is compared.
(i) The same method as that used by the United States Energy Information Administration and published in its most recent edition of the Electric Power Annual report for electric utilities, as adopted by the commission by rule, or the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule; and
(ii) Data from the same calendar year as the United States Energy Information Administration's publication to which the investor-owned electric utility's or the investor-owned natural gas utility's revenue increase is compared.
(C) If the commission finds that the investor-owned electric utility or the investor-owned natural gas utility provides substantial evidence to the commission demonstrating that its rates will remain capable of attracting or retaining economic development opportunities for the state even if the rates exceed ten percent (10%) below national average and that doing so is in the public interest, then the commission shall approve each revenue increase.
(2) (A) If the commission approves a revenue increase for an investor-owned electric utility or an investor-owned natural gas utility from an annual update to the rider under this subchapter that results in the investor-owned electric utility's or the investor-owned natural gas utility's rates exceeding a level ten percent (10%) below the national average, the commission shall submit a letter to the cochairs of the Legislative Council notifying the General Assembly that the commission has approved a revenue increase for an investor-owned electric utility or investor-owned natural gas utility from an annual update to the rider under this subchapter that has resulted in an investor-owned electric utility's or an investor-owned natural gas utility's total rates inclusive of all riders exceeding a level ten percent (10%) below the national average.(B) Unless the commission approves an increase in the total amount of revenue increase from an annual update to the rider under this subchapter that exceeds a level ten percent (10%) below the national average for all sectors under subdivision (f)(2)(A) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall adjust its annual update to the rider under subsections (a)-(d) of this section to include only a revenue increase that results in rates that are ten percent (10%) below the national average.(C) The commission shall verify that an annual update to the rider under subsections (a)-(d) of this section does not include a revenue increase that results in rates exceeding a level ten percent (10%) below the national average unless it authorizes a greater amount under subdivision (f)(1)(A) of this section.(D) (i) If an investor-owned natural gas utility's rates are above the national average for all sectors calculated using the same method as that used by the United States Energy Information Administration and published in its most recent edition of the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule, and calculated using data from the same calendar year as the United States Energy Information Administration publication to which the investor-owned natural gas utility's revenue increase is compared, the total amount of revenue increase or decrease for an investor-owned natural gas utility from an annual update to the rider under this subchapter shall not exceed four percent (4%) of each rate class's total revenue.(ii) If a conflict exists between subdivision (f)(1) of this section and subdivision (f)(2)(D)(i) of this section, subdivision (f)(2)(D)(i) of this section shall control.(E) The commission shall submit an annual report to the Legislative Council describing:(i) The strategic investments included in the rider for an investor-owned electric utility or an investor-owned natural gas utility; and(ii) The change in rates resulting from the investor-owned electric utility's and the investor-owned natural gas utility's annual update to the rider under this subchapter on the investor-owned electric utility's or the investor-owned natural gas utility's rates.
(A) If the commission approves a revenue increase for an investor-owned electric utility or an investor-owned natural gas utility from an annual update to the rider under this subchapter that results in the investor-owned electric utility's or the investor-owned natural gas utility's rates exceeding a level ten percent (10%) below the national average, the commission shall submit a letter to the cochairs of the Legislative Council notifying the General Assembly that the commission has approved a revenue increase for an investor-owned electric utility or investor-owned natural gas utility from an annual update to the rider under this subchapter that has resulted in an investor-owned electric utility's or an investor-owned natural gas utility's total rates inclusive of all riders exceeding a level ten percent (10%) below the national average.
(B) Unless the commission approves an increase in the total amount of revenue increase from an annual update to the rider under this subchapter that exceeds a level ten percent (10%) below the national average for all sectors under subdivision (f)(2)(A) of this section, the investor-owned electric utility or the investor-owned natural gas utility shall adjust its annual update to the rider under subsections (a)-(d) of this section to include only a revenue increase that results in rates that are ten percent (10%) below the national average.
(C) The commission shall verify that an annual update to the rider under subsections (a)-(d) of this section does not include a revenue increase that results in rates exceeding a level ten percent (10%) below the national average unless it authorizes a greater amount under subdivision (f)(1)(A) of this section.
(D) (i) If an investor-owned natural gas utility's rates are above the national average for all sectors calculated using the same method as that used by the United States Energy Information Administration and published in its most recent edition of the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule, and calculated using data from the same calendar year as the United States Energy Information Administration publication to which the investor-owned natural gas utility's revenue increase is compared, the total amount of revenue increase or decrease for an investor-owned natural gas utility from an annual update to the rider under this subchapter shall not exceed four percent (4%) of each rate class's total revenue.(ii) If a conflict exists between subdivision (f)(1) of this section and subdivision (f)(2)(D)(i) of this section, subdivision (f)(2)(D)(i) of this section shall control.
(i) If an investor-owned natural gas utility's rates are above the national average for all sectors calculated using the same method as that used by the United States Energy Information Administration and published in its most recent edition of the Natural Gas Annual report for natural gas utilities, as adopted by the commission by rule, and calculated using data from the same calendar year as the United States Energy Information Administration publication to which the investor-owned natural gas utility's revenue increase is compared, the total amount of revenue increase or decrease for an investor-owned natural gas utility from an annual update to the rider under this subchapter shall not exceed four percent (4%) of each rate class's total revenue.
(ii) If a conflict exists between subdivision (f)(1) of this section and subdivision (f)(2)(D)(i) of this section, subdivision (f)(2)(D)(i) of this section shall control.
(E) The commission shall submit an annual report to the Legislative Council describing:(i) The strategic investments included in the rider for an investor-owned electric utility or an investor-owned natural gas utility; and(ii) The change in rates resulting from the investor-owned electric utility's and the investor-owned natural gas utility's annual update to the rider under this subchapter on the investor-owned electric utility's or the investor-owned natural gas utility's rates.
(i) The strategic investments included in the rider for an investor-owned electric utility or an investor-owned natural gas utility; and
(ii) The change in rates resulting from the investor-owned electric utility's and the investor-owned natural gas utility's annual update to the rider under this subchapter on the investor-owned electric utility's or the investor-owned natural gas utility's rates.
(3) An investor-owned electric utility shall submit an annual report to the commission describing its generation portfolio mix based on the generation capacity mix and on the energy mix.
(4) The commission shall submit an annual report to the Legislative Council describing the generation portfolio mix based on the generation capacity mix and based on the energy mix for each investor-owned electric utility.
(g) Once strategic investments in public utility facilities are complete and in service, an investor-owned electric utility or an investor-owned natural gas utility shall:(1) Reconcile the actual expenditures and any projected amounts included in the rider;(2) Net any differences in projected amounts and actual expenditures; and(3) Either:(A) Reduce the amounts ultimately capitalized by any over-collection; or(B) Recover any under-collection through subsequent years' rider filings.
(1) Reconcile the actual expenditures and any projected amounts included in the rider;
(2) Net any differences in projected amounts and actual expenditures; and
(3) Either:(A) Reduce the amounts ultimately capitalized by any over-collection; or(B) Recover any under-collection through subsequent years' rider filings.
(A) Reduce the amounts ultimately capitalized by any over-collection; or
(B) Recover any under-collection through subsequent years' rider filings.
(h) For recovery through the rider, an investor-owned electric utility or an investor-owned natural gas utility shall give priority to strategic investments in new electric generation and transmission facilities located in Arkansas, unless:(1) The investor-owned electric utility or the investor-owned natural gas utility demonstrates and the commission finds that a strategic investment in new electric generation and transmission facilities located outside of Arkansas provides greater benefits to the investor-owned electric utility's or the investor-owned natural gas utility's customers in Arkansas than a comparable strategic investment in new electric generation and transmission facilities located in Arkansas;(2) A comparable strategic investment in a new electric generation or transmission facility is not available or cannot be constructed in Arkansas; or(3) A customer or customers contract to pay all or a portion of the cost of the strategic investment in the resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.
(1) The investor-owned electric utility or the investor-owned natural gas utility demonstrates and the commission finds that a strategic investment in new electric generation and transmission facilities located outside of Arkansas provides greater benefits to the investor-owned electric utility's or the investor-owned natural gas utility's customers in Arkansas than a comparable strategic investment in new electric generation and transmission facilities located in Arkansas;
(2) A comparable strategic investment in a new electric generation or transmission facility is not available or cannot be constructed in Arkansas; or
(3) A customer or customers contract to pay all or a portion of the cost of the strategic investment in the resource through a special rate contract, a renewable rate schedule, a contribution in aid of construction, or other form of payment.