(a) It is declared to be the policy of this state that while the development of qualifying cogeneration and small power production facilities should be encouraged, electric utilities should not be required to purchase power from the facilities at excessive rates which would result in an increase in the cost of providing electrical service to […]
As used in this subchapter, unless the context otherwise requires: (1) “Avoided costs” means the costs to an electric utility of electric energy or capacity, or both, that, but for the purchase from the qualifying facility or qualifying facilities, the utility would generate itself or purchase from another source; (2) “Commission” means the Arkansas Public […]
The Arkansas Public Service Commission shall establish rates to be paid by an electric utility to qualifying cogeneration and small power production facilities which do not, over the term of the purchased power contract, exceed avoided costs and are based upon the preponderance of evidence in the record before the commission. However, rates established for […]
(a) A determination of the avoided energy cost rate or rates for the electric utility shall be based on the electric utility’s estimated avoided costs of producing or purchasing electrical energy during the time period of the purchase of electrical energy from the qualifying facility. It shall not be based upon the production or purchase […]
Nothing in this subchapter shall prohibit an electric utility and a qualifying facility from negotiating a contract rate lower than the avoided cost rate established by the Arkansas Public Service Commission for the electric utility.
