§ 23-18-603 — Definitions

As used in this subchapter: (1) "Avoided cost" means: (A) For an electric utility other than a municipal utility, the twelve-month average for the prior calendar year of the applicable Locational Marginal Price associated with the electric utility's load zone in the following applicable Independent System Operator market: (i) The Midcontinent Independent System Operator; or (ii) The Southwest Power Pool; or (B) For a municipal utility, the definition provided by the governing body of the municipal utility; (2) "Commission" means the Arkansas Public Service Commission or other appropriate governing body for an electric utility as defined in subdivision (3) of this section; (3) "Electric utility" means a public or investor-owned utility, an electric cooperative, or any private power supplier or marketer that is engaged in the business of supplying electric energy to the ultimate consumer or any customer classes within the state; (4) "Monthly grid charge" means a charge expressed in dollars per kilowatt applied to the nameplate alternating current capacity of the net-metering facility; (5) (A) "Municipal utility" means a utility system owned or operated by a municipality that provides electricity. (B) "Municipal utility" includes without limitation a: (i) Utility system managed or operated by a nonprofit corporation under § 14-199-701 et seq.; and (ii) Utility system owned or operated by a municipality or by a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.; (6) "Net excess generation" means the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate that a net-metering customer has fed back to the electric utility that exceeds the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate used by that customer during the applicable period determined by a commission; (7) "Net metering" means a billing option that measures the amount of electricity as measured in kilowatt hours supplied by an electric utility to an individual net-metering customer and separately measuring the electricity as measured in kilowatt hours generated by an individual net-metering customer's net-metering facility and fed back to the electric utility; (8) (A) "Net-metering customer" means an individual customer of an electric utility that: (i) Is an owner of a net-metering facility; (ii) Leases a net-metering facility subject to the following limitations: (a) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and (b) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or (iii) (a) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022. (b) Revenues collected under contracts for obtaining electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022, are exempt from state and local sales taxes. (B) "Net-metering customer" does not mean a customer that is an interruptible customer of the electric utility and takes service under an electric utility's rate schedule for interruptible service, unless a commission has: (i) Considered an application and issued an order, before December 31, 2022, addressing an individual net-metering customer's application for approval of a net-metering facility with a nameplate generating capacity in excess of ten thousand kilowatts (10,000 kW) where an individual net-metering customer also takes service under an electric utility's rate schedule for interruptible service; and (ii) Concluded that it is in the public interest for that individual interruptible customer to be a net-metering customer; (9) "Net-metering facility" means a facility for the production of electric energy to meet all or part of a net-metering customer's need for electric energy within a single utility's allocated service territory that: (A) Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and micro turbines that generate electricity if the fuel source is entirely derived from renewable resources; (B) (i) Has a nameplate generating capacity of not more than: (a) For a residential customer for residential use, the lesser of twenty-five kilowatts (25 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months unless an individual net-metering customer's net-metering facility with a greater amount is included in a standard interconnection agreement executed before December 31, 2022; (b) For nonresidential customers of electric utilities for nonresidential use, less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months within a single utility's allocated service territory where a single net-metering facility is physically located behind a net-metering customer's electric utility meter that represents one hundred percent (100%) of the net-metering customer's energy usage served by the net-metering facility; or (c) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605 . (ii) (a) The total nameplate generating capacity of all net-metering facilities owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts of an individual net-metering customer serving multiple meter locations under common ownership of any net-metering customer, within a single utility's allocated service territory, shall be less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months, unless: (1) A commission approved a greater amount 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) and has filed the contract with a commission under a protective order by March 31, 2023; or (3) An individual net-metering customer 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) before December 31, 2022. (b) (1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory. (2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership; (C) Is located in Arkansas; (D) Can operate in parallel with an electric utility's existing distribution facilities or, if permitted by the electric utility, an electric utility's transmission facilities; (E) Is intended to offset part or all of an individual net-metering customer's requirements for electricity; and (F) (i) May include an energy storage device that is configured to receive electric energy solely from a net-metering facility. (ii) The capacity of an energy storage device shall not be used to calculate the capacity limits listed in subdivision (9)(B) of this section if the energy storage device is configured to receive electric energy solely from a net-metering facility; (10) "Net-metering surplus" means the dollar value resulting from multiplying the 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 under § 23-18-604(c)(4) ; and (11) "Renewable energy credit" means the environmental, economic, and social attributes of a unit of electricity, such as a megawatt hour, generated from renewable fuels that can be sold or traded separately.

Legislative History

Amended by Act 2023, No. 278,§ 1, eff. 3/13/2023. Amended by Act 2019, No. 464,§ 1, eff. 7/24/2019. Amended by Act 2015, No. 827,§ 1, eff. 7/22/2015. Acts 2001, No. 1781, § 3; 2007, No. 1026, § 1.