§ 23-4-1201. Title

This subchapter shall be known and may be cited as the “Formula Rate Review Act”.

§ 23-4-1202. Findings and intent

(a) The General Assembly finds that: (1) Electricity and natural gas services are essential to the public health and safety of citizens of this state; and (2) Affordable electricity and natural gas encourage economic activity within the state and benefit the state’s industrial, commercial, and agricultural industries to increase the number of available jobs and […]

§ 23-4-1203. Definitions

As used in this subchapter: (1) (A) “Earned return rate” means a public utility’s return on common equity for a formula rate review test period that is based on the numbers or values of the formula rate review test period and calculated by dividing the weighted earned common equity rate by the common equity ratio […]

§ 23-4-1204. Formula rate review — Authorized

(a) A formula rate review is authorized to provide an annual streamlined review of a public utility’s rates to determine if adjustments are needed to comply with this subchapter. (b) An electric cooperative corporation established under the Electric Cooperative Corporation Act, § 23-18-301 et seq., shall not be regulated by a formula rate review.

§ 23-4-1205. Filing — Procedure

(a) (1) A public utility filing an application for a general change or modification to its rates and charges under § 23-4-401 et seq., may as part of its application, file a notice with the Arkansas Public Service Commission that the public utility is electing to have its rates regulated under a formula rate review […]

§ 23-4-1206. Formula rate review — Required information

(a) A formula rate review mechanism approved by the Arkansas Public Service Commission shall specify the minimum information required with each annual rate review filing. (b) Annual formula rate review filings under an approved formula rate review mechanism shall be developed using the formula rate review test period designated by the public utility under § […]

§ 23-4-1207. Formula — Adjustment of customer rates

(a) Customer rates shall be adjusted in a formula rate review mechanism based on a comparison of the earned return rate to the target return rate. (b) Adjustments of customer rates shall be calculated using the following formula: (1) If the earned return rate is less than the target return rate minus five-tenths percent (0.5%), […]

§ 23-4-1208. Term — Formula rate review

(a) (1) The term of any formula rate review approved by the Arkansas Public Service Commission shall not exceed five (5) years from the date of the commission’s final order on the application by the public utility for a general change in rates and charges. (2) Upon a determination that it is in the public […]

§ 23-4-1209. Construction

(a) This subchapter does not repeal any other provision in this chapter and is supplemental to other laws governing the regulation of public utility rates. (b) This subchapter shall not prohibit the Arkansas Public Service Commission from exercising its powers under any other statute.