Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 1 - PUBLIC UTILITIES AND CARRIERS (§§ 23-1-101 — 23-19-210) › Chapter 18 - LIGHT, HEAT, AND POWER UTILITIES (§§ 23-18-101 — 23-18-1209) › Subchapter 6 - ARKANSAS COST-SHIFTING PREVENTION ACT OF 2023 (§§ 23-18-601 — 23-18-607) › Section 23-18-606 - Rate structure determination

(a)
At its discretion, an electric utility may elect to use one (1) of the following rate structures to develop rates for net-metering customers:
(1)
A rate structure in which the electric utility:
(A)
Separately meters the electric energy, measured in kilowatt hours:
(i)
Supplied by the electric utility to the net-metering customer; and
(ii)
Fed back to the electric utility from the net-metering customer's net-metering facility at any time during the applicable billing period;
(B)
Applies the:
(i)
Commission-approved customer charge, demand charge, minimum bill provision, and other applicable commission-approved charges under §
23-18-604(c)(1)(A)
;
(ii)
Commission-approved charges under §
23-18-604(c)(1)(A)
to the applicable net-metering customers, including without limitation any rates, riders, and surcharges applied based on the volume of kilowatt hours of electricity supplied by an electric utility pursuant to the rate structure the electric utility elects under this subsection; and
(iii)
Avoided cost of the electric utility to all kilowatt hours supplied to the electric utility by a net-metering customer during the applicable billing period to be credited to the total bill of the net-metering customer in a dollar value, excluding the customer charge and any applicable demand charge or minimum bill provision that the net-metering customer shall pay each month;
(C)
Credits the net-metering customer with any accumulated net-metering surplus as measured in dollars during the next applicable billing period; and
(D)
Credits the bills of the net-metering customer's other meters with the net-metering surplus measured in dollars under §
23-18-604(d)(2)
; or
(2)
A rate structure in which the electric utility:
(A)
Separately meters the electric energy, measured in kilowatt hours:
(i)
Supplied by the electric utility to the net-metering customer; and
(ii)
Fed back to the electric utility from the net-metering customer's net-metering facility at any time during the applicable billing period;
(B)
Applies the:
(i)
Commission-approved customer charge, demand charge, minimum bill provision, and other applicable commission-approved charges under §
23-18-604(c)(1)(A)
; and
(ii)
Commission-approved riders or surcharges under §
23-18-604(c)(1)(A)
, including without limitation any rates, riders, and surcharges applied based on the volume of kilowatt hours of electricity supplied by an electric utility pursuant to the rate structure the electric utility elects under this subsection;
(C)
Credits the net-metering customer with any accumulated net excess generation during the next applicable billing period;
(D)
Calculates the net kilowatt hours of the electric energy supplied by the electric utility to the net-metering customer, less the net excess generation and any net excess generation carried forward from prior billing periods;
(E)
Applies the commission-approved retail rate, except as provided in subdivision (a)(2)(B) of this section, not to exceed the kilowatt hours supplied to the net-metering customer by the electric utility during the applicable billing period;
(F)
Carries forward any net excess generation that exceeds the kilowatt hours supplied by the electric utility during the applicable billing period to the next billing period;
(G)
Excludes any net excess generation applied to another meter location of the net-metering customer under §
23-18-604(d)
; and
(H)
Applies the monthly grid charge under §
23-18-607
.
(b)
A commission shall approve the rates established by a rate structure used by an electric utility under subsection (a) of this section.
Added by Act 2023, No. 278,§ 1, eff. 3/13/2023.