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 23-18-604 - Commission authority - Definition

(a)
(1)
An electric utility shall allow net-metering facilities to be interconnected using, at a minimum, a single standard two-channel digital meter that separately measures the electric energy in kilowatt hours that is:
(A)
Supplied by an electric utility to the net-metering customer; and
(B)
Generated by the net-metering customer's net-metering facility and fed back to an electric utility.
(2)
An electric utility may impose a charge to recover any cost of the standard two-channel digital meter that is not otherwise included in the rates paid by the net-metering customer.
(b)
(1)
Following notice, opportunity for public comment, and a hearing, a commission shall establish appropriate rates, terms, and conditions for net metering, including without limitation the adoption or revision of any applicable rules on or before December 31, 2023.
(2)
The right to a hearing under this subsection may be waived by the parties.
(c)
Through its actions under subdivision (b)(1) of this section, a commission shall:
(1)
(A)
Ensure that each net-metering customer pays either the entire costs of an electric utility's facilities and associated expenses or the appropriate portion of the costs and associated expenses as determined under a rate schedule approved by a commission required to:
(i)
Provide service to the net-metering customer; and
(ii)
Enable the net-metering customer's use of the electric utility's facilities.
(B)
The costs described under subdivision (c)(1)(A) of this section include without limitation any costs that are:
(i)
Recovered through rates using the cost-of-service study underlying the rates approved by a commission in the electric utility's most recent application for a general change or modification of the electric utility's rates under §
23-4-401
et seq.;
(ii)
Recovered through riders or surcharges; and
(iii)
Adjusted for any commission-approved:
(a)
Formula rate plan adjustments under the Formula Rate Review Act, §
23-4-1201
et seq.; or
(b)
Adjustments under §
23-4-901
et seq.
(C)
By December 31, 2023, a commission shall approve modifications to each electric utility's rate schedules applicable to net- metering customers pursuant to the rate structure the electric utility elects under §
23-18-606(a)
;
(2)
Allow an electric utility to modify the rates, terms, and conditions, including without limitation the rate structure and any individual rate components for net-metering customers, subject to approval by the commission, without filing an application for a general change or modification of the electric utility's rates under §
23-4-401
et seq.;
(3)
Not adjust the costs of an electric utility's facilities and associated expenses required to provide service to a net-metering customer and to enable the net-metering customer's use of the electric utility's facilities as specified in subdivision (c)(1)(A) of this section with any amounts that are not quantified in the cost-of-service study underlying the retail rates approved by a commission in the electric utility's most recent application for a general change or modification in rates under §
23-4-401
et seq., including without limitation any commission-approved:
(A)
Formula rate plan adjustments under the Formula Rate Review Act, §
23-4-1201
et seq.; or
(B)
Adjustments under §
23-4-901
et seq.;
(4)
Establish rates for a net-metering customer using one (1) of the rate structures under §
23-18-606
;
(5)
Separately meter the electric energy, measured in kilowatt hours, supplied by the electric utility to the net-metering customer and the electric energy, measured in kilowatt hours, that is fed back to the electric utility from the net-metering customer's net-metering facility at any time during the applicable billing period;
(6)
Apply the commission-approved customer charge, demand charge, or minimum bill provision and other applicable commission-approved charges addressed in subdivision (c)(1)(A) of this section;
(7)
Apply the commission-approved charges addressed in subdivision (c)(1)(A) of this section to the applicable net-metering customers, including without limitation any rates, riders, and surcharges that are applied based on the volume of kilowatt hours of electricity supplied by an electric utility, to all kilowatt hours that are supplied by the electric utility to a net-metering customer by the electric utility during the applicable billing period;
(8)
Authorize an electric utility to recover any net-metering surplus or the dollar value of any net excess generation applied to the bills of net-metering customers in the same manner that the electric utility recovers the cost of fuel and purchased energy;
(9)
(A)
Authorize an electric utility to assess a net-metering customer a standard one-time fee, to be approved by the commission, to recover administrative and related interconnection review costs.
(B)
Any costs incurred by the electric utility for an interconnection study are the sole responsibility of the net-metering customer and shall be paid in advance of any work's being undertaken by the electric utility to:
(i)
Enable the interconnection; and
(ii)
Recover the electric utility's direct costs of interconnection and any grid upgrades required to connect the net-metering customer's net-metering facility;
(10)
(A)
Require that a net-metering customer retains any renewable energy credit created as a result of the electricity supplied by a net-metering customer that generated the renewable energy credit.
(B)
The renewable energy credit may be retained, retired, or sold for the sole benefit of the net-metering customer; and
(11)
(A)
Allow a net-metering facility of an individual net-metering customer to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, if the net-metering customer has:
(i)
Submitted a standard interconnection agreement to the electric utility before September 30, 2024;
(ii)
Submitted a facilities agreement or equivalent document to establish an account with an electric utility and paid all costs of constructing the electric utility facilities necessary to interconnect the net-metering facility before September 30, 2024; or
(iii)
Filed a complaint with a commission addressing a disputed facilities agreement or equivalent document to establish an account with an electric utility after the presentation by the electric utility to the net-metering customer of the facilities agreement or equivalent document and the required costs of constructing the facilities necessary to interconnect the net-metering facility before September 30, 2024.
(B)
A net-metering facility of an individual net-metering customer that does not meet the requirements of subdivision (c)(11)(A) of this section shall be billed using one (1) of the rate structures established in §
23-18-606
.
(C)
A net-metering facility billed using the rate structures described in subdivisions (c)(11)(A) and (B) of this section remains subject to any other change or modification in rates, terms, and conditions.
(d)
(1)
Except as provided in subdivision (d)(2) of this section, an electric utility shall separately meter, bill, and credit each net-metering facility even if one (1) or more net-metering facilities are under common ownership.
(2)
(A)
(i)
At an individual net-metering customer's discretion, an electric utility shall apply net-metering credits for customers who are billed under §
23-18-606(a)(2)(A)
-(G) or the net-metering surplus for all other customers from an individual net-metering customer's net-metering facility to the bill for another meter location of the individual net-metering customer if the net-metering facility and the separate meter location are under common ownership of the same individual net-metering customer within a single electric utility's allocated service territory and:
(a)
Are located within a one hundred (100) mile radius of the individual net-metering customer's net-metering facility, unless:
(1)
A commission approved a greater distance for an individual net-metering customer before December 31, 2022;
(2)
An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) with a greater distance and has filed that contract with a commission under a protective order by March 31, 2023; or
(3)
An individual net-metering customer has filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) with a greater distance before December 31, 2022; or
(b)
For a net-metering facility that did not require approval by a commission, are constructed at a greater distance and included in an executed standard interconnection agreement submitted before December 31, 2023.
(ii)
A separate meter location under subdivision (d)(2)(A)(i) of this section shall be credited only with net-metering surplus from one (1) net-metering facility owned by, leased by, or providing electric service under a qualifying service contract of the same individual net-metering customer, with all accounts being under common ownership for the same individual net-metering customer.
(B)
Net-metering surplus shall be credited first to an individual net-metering customer's bill for the meter to which the net-metering facility is physically attached.
(C)
After applying net-metering surplus under subdivision (d)(2)(B) of this section and upon request of the net-metering customer under subdivision (d)(2)(A) of this section, any remaining net-metering surplus shall be credited to one (1) or more of the individual net-metering customer's bills for the individual net-metering customer's meters in the rank order provided by the individual net-metering customer.
(e)
A person that acts as a lessor or service provider as described in §
23-18-603(8)(A)(ii)
or §
23-18-603(8)(A)(iii)
shall not be considered a public utility as defined in §
23-1-101
.
(f)
An electric utility shall not be obligated to:
(1)
Accept or release any portion of its or another electric utility's allocated service territory to accommodate the development, construction, or operation of a net-metering facility; or
(2)
Publish, provide, or release any information regarding its electric utility facilities or system to aid in the location of the net-metering facilities beyond its established site review process.
Amended by Act 2023, No. 278,§ 1, eff. 3/13/2023.
Amended by Act 2019, No. 464,§ 2, eff. 7/24/2019.
Amended by Act 2015, No. 827,§ 6, eff. 7/22/2015.
Amended by Act 2015, No. 827,§ 5, eff. 7/22/2015.
Amended by Act 2015, No. 827,§ 4, eff. 7/22/2015.
Amended by Act 2015, No. 827,§ 3, eff. 7/22/2015.
Amended by Act 2015, No. 827,§ 2, eff. 7/22/2015.
Amended by Act 2013, No. 1221,§ 1, eff. 8/16/2013.
Acts 2001, No. 1781, § 4; 2007, No. 1026, § 2.