(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 mechanism as authorized by this subchapter.
(2)The notice shall designate the formula rate review test period based upon either a projected year or a test period under § 23-4-406 .
(b)Upon receipt of a notice as described in subdivision (a)(1) of this section, the commission shall:
(1)Regulate the rates of the public utility according to this subchapter; and (2) Be required to approve a formula rate review mechanism utilizing the formula rate review test period designated by
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(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 mechanism as authorized by this subchapter. (2) The notice shall designate the formula rate review test period based upon either a projected year or a test period under § 23-4-406 . (b) Upon receipt of a notice as described in subdivision (a)(1) of this section, the commission shall: (1) Regulate the rates of the public utility according to this subchapter; and (2) Be required to approve a formula rate review mechanism utilizing the formula rate review test period designated by the public utility. (c) (1) (A) An electric or natural gas public utility that has filed a notice of intent or has an application for a general change in rates and charges pending under § 23-4-401 et seq. that contains a notice of election to be regulated under a formula rate review effective March 27, 2015, shall be regulated under this subchapter. (B) (i) A water or sewer public utility that has filed a notice of intent or has an application for a general change in rates and charges pending under § 23-4-401 et seq. that contains a notice of election to be regulated under a formula rate review effective March 27, 2015, may request that the water or sewer public utility be regulated under this subchapter. (ii) Upon a public interest determination, the commission may authorize the water or sewer public utility's request under subdivision (c)(1)(B)(i) of this section to be regulated under this subchapter. (2) (A) A public utility shall not file for an initial formula rate review until at least one hundred eighty (180) days after rates have become effective pursuant to the final order on the application for a general change in rates. (B) A public utility that has filed a notice of intent or has an application for a general change in rates and charges pending under § 23-4-401 et seq. that contains a notice of election to be regulated under a formula rate review effective March 27, 2015, may file for the initial formula rate review one hundred fifty (150) days after rates have become effective pursuant to the final order in the general rate case. (3) (A) The rates that are approved in the application for a general change in rates and charges shall remain in effect during the formula rate review term under § 23-4-1208 , subject to the rate adjustments under this subchapter. (B) As part of an extension of the initial five-year term of a formula rate review under § 23-4-1207(d) and § 23-4-1208(a)(3) , for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall, and for all other utilities the commission may approve changes to the rate design within an individual customer class consistent with § 23-4-422(b)(1) . (d) An approved formula rate review mechanism shall require the public utility to file the information required by the commission under this subchapter not more than one hundred eighty (180) days before the date on which the rates determined by the formula rate review mechanism will go into effect for each year. (e) An approved formula rate review mechanism shall require any party, according to the commission's rules and procedures, to file with the commission a statement of the errors or objections at least ninety (90) days before the date on which rates determined by the formula rate review mechanism will go into effect for each year. (f) An approved formula rate review mechanism shall require the public utility to file with the commission any corrections or a rebuttal to the errors or objections raised by the parties at least seventy-five (75) days before the date on which rates determined by the formula rate review mechanism will go into effect for each year. (g) (1) The commission shall conduct a hearing, unless waived by the parties, at least fifty (50) days before the date on which rates determined by the formula rate review mechanism will go into effect for each year. (2) The commission shall issue a final order at least twenty (20) days before the date on which rates determined by the formula rate review mechanism will go into effect for each year. (3) (A) If a final order is not issued at least twenty (20) days before the date on which rates determined by the formula rate review mechanism will go into effect for each year, the public utility may put the proposed formula rate rider changes into effect subject to refund. (B) The commission may require reasonable security to assure the prompt payment of any refunds, including interest, that may be ordered.