Arkansas House Bill HB1370

Arkansas 2023 Regular Session

• Introduced: 2/8/23
• Refer: 2/8/23
• Report Pass: 2/23/23
• Refer: 2/28/23
• Report Pass: 3/1/23
• Failed: 5/1/23

Caption

To Amend The Arkansas Renewable Energy Development Act Of 2001; To Prevent Cost-shifting And Ensure Fairness To All Ratepayers; To Create The Customer Protections For Net-metering Customers Act; And To Declare An Emergency.

Impact

If passed, the legislation will create a more structured approach to net metering by requiring electric utilities to adopt specific rate structures and by expanding customer protections. This will include ensuring that net-metering customers are not unfairly charged or subjected to cost-shifting practices by the utility companies, thus aiming to support renewable energy growth while protecting current and future ratepayers. It introduces a mechanism whereby net-metering customers can maintain their rights when dealing with utilities and strengthens the regulatory oversight of utility practices.

Summary

House Bill 1370 aims to amend the Arkansas Renewable Energy Development Act of 2001, focusing on customer protections for net-metering customers. It seeks to prevent cost-shifting and ensure fairness to all utility ratepayers by modifying how electric utilities manage net-metering arrangements. The bill's provisions are intended to enhance consumer choice and promote the use of renewable resources, while establishing measures that help manage infrastructure costs associated with net-metering.

Sentiment

The sentiment surrounding HB 1370 appears supportive among proponents of renewable energy and consumer protection advocates, who view it as essential for promoting the adoption of sustainable energy practices while safeguarding consumer interests. However, there may be concern from utilities over the potential implications of the new regulations on their cost structures and operational processes, suggesting a divide between consumer-focused policies and utility profitability.

Contention

Notable points of contention may arise around the amendments regarding the specific rate structures for net-metering, the potential increase in administrative costs for utilities, and the implications of the bill on traditional energy markets. Some stakeholders could argue that by solidifying net metering rules, the bill could inadvertently impose greater financial burdens on all ratepayers if utilities are forced to restructure rates. The balance between fostering renewable energy adoption and maintaining equitable costs for all consumers is likely to be a significant focus of debate.