Arkansas 2023 Regular Session

Arkansas House Bill HB1370 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
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3	3
4		-	State of Arkansas As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ 1
	4	+	State of Arkansas As Engrossed: H2/20/23 H2/21/23 H2/27/23 1
5	5		94th General Assembly A Bill 2
6	6		Regular Session, 2023 HOUSE BILL 1370 3
7	7		4
8		-	By: ~~Representatives~~ L. Fite~~, Wardlaw~~ 5
	8	+	By: Representative L. Fite 5
9	9		By: Senator J. Dismang 6
10	10		7
11	11		For An Act To Be Entitled 8
12	12		AN ACT TO AMEND THE ARKANSAS RENEWABLE E NERGY 9
13	13		DEVELOPMENT ACT OF 2 001; TO PREVENT COST -SHIFTING AND 10
14	14		ENSURE FAIRNESS TO A LL RATEPAYERS; TO CR EATE THE 11
15	15		CUSTOMER PROTECTIONS FOR NET-METERING CUSTOMER ACT; 12
16	16		TO DECLARE AN EMERGE NCY; AND FOR OTHER P URPOSES. 13
17	17		14
18	18		15
19	19		Subtitle 16
20	20		TO AMEND THE ARKANSAS RENEWABLE ENERGY 17
21	21		DEVELOPMENT ACT OF 2001; TO PREVENT COST -18
22	22		SHIFTING AND ENSURE FAIRNESS TO ALL 19
23	23		RATEPAYERS; TO CREATE THE CUSTOMER 20
24	24		PROTECTIONS FOR NET-METERING CUSTOMERS 21
25	25		ACT; AND TO DECLARE AN EMERGENCY. 22
26	26		23
27	27		24
28	28		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
29	29		26
30	30		SECTION 1. Arkansas Code Title 23, Chapter 18, Subchapter 6 is amended 27
31	31		to read as follows: 28
32	32		Subchapter 6 — Arkansas Renewable Energy Development Cost-Shifting Prevention 29
33	33		Act of 2001 2023 30
34	34		31
35	35		23-18-601. Title. 32
36	36		This subchapter shall be known and cited as the “Arkansas Renewable 33
37	37		Energy Development Cost-Shifting Prevention Act of 2001 2023”. 34
38	38		35
39		-	23-18-602. Legislative findings and ~~declarations~~. 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	39	+	23-18-602. Legislative findings and declaratio ns. 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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43	43
44	44		(a) Net energy metering encourages the use of renewable energy 1
45	45		resources and renewable energy technologies by reducing utility 2
46	46		interconnection and administrative costs for small consumers of electricity. 3
47	47		More than thirty (30) other states have passed similar laws or regulations in 4
48	48		support of net energy metering programs. Increasing the consumption of 5
49	49		renewable resources promotes the wise use of Arkansas's natural energy 6
50	50		resources to meet a growing energy demand, increases Arkansas's use of 7
51	51		indigenous energy fuels while reducing dependence on imported fossil fuels, 8
52	52		fosters investments in emerging renewable technologies to stimulate economic 9
53	53		development and job creation in the state, including the agricultural 10
54	54		sectors, reduces environmental stresses from energy production, and provides 11
55	55		greater consumer choices. The General Assembly finds that: 12
56	56		(1) Arkansas has an established process for the billing option 13
57	57		that enables customer -owned net-metering facilities to offset part or all of 14
58	58		a net-metering customer's electric consumption; 15
59	59		(2) This billing option should continue subject to certain 16
60	60		modifications for the benefit and rate protection of all electric utility 17
61	61		customers in Arkansas; and 18
62	62		(b)(3) Arkansas has actively encouraged the manufacture of new 19
63	63		technologies in the state through promotion of the Arkansas Emerging 20
64	64		Technology Development Act of 1999, § 15 -4-2101 et seq. [repealed]. Net 21
65	65		metering would help to further attract energy technology manufacturers, to 22
66	66		provide a foothold for these technologie s in the Arkansas economy, and to 23
67	67		make it easier for customer access to these technologies. 24
68	68		(c) Therefore, the General Assembly finds that it It is in Arkansas's 25
69	69		long-term interest to adopt this subchapter the modifications set forth in 26
70	70		this subchapter. 27
71	71		28
72	72		23-18-603. Definitions. 29
73	73		As used in this subchapter: 30
74	74		(1) “Avoided cost” means: 31
75	75		(A) For an electric utility other than a municipal 32
76	76		utility, the costs to an electric utility of electric energy or capacity, or 33
77	77		both, that, but for the generation fr om the net-metering facility or 34
78	78		facilities, the utility would generate itself or purchase from another 35
79		-	source, as determined by a commission consistent with § 23 -3-701 et seq. 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	79	+	source, as determined by a commission consistent with § 23 -3-701 et seq. 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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83	83
84	84		twelve-month average for the prior calendar year of the applicable Locational 1
85	85		Marginal Price associated with the electric utility's load zone in the 2
86	86		following applicable Independent System Operator market: 3
87	87		(i) The Midcontinent Independent System Operator; or 4
88	88		(ii) The Southwest Power Pool ; or 5
89	89		(B) For a municipal utility, the definition provided by 6
90	90		the governing body of the municipal utility; 7
91	91		(2) “Commission” means the Arkansas Public Service Commission or 8
92	92		other appropriate governing body for an electric utility as defined in 9
93	93		subdivision (3) of this section; 10
94	94		(3) “Electric utility” means a public or investor -owned utility, 11
95	95		an electric cooperative, or any private power supplier or marketer that is 12
96	96		engaged in the business of supplying electric energy to the ultimate consumer 13
97	97		or any customer classes within the state; 14
98	98		(4) "Monthly grid charge" means a charge expressed in dollars 15
99		-	per kilowatt applied to the nameplate ~~alternating~~ current capacity of the 16
100		-	~~net-~~metering facility; 17
	99	+	per kilowatt applied to the nameplate direct current capacity of the net -16
	100	+	metering facility; 17
101	101		(4)(A)(5)(A) “Municipal utility” means a utility system owned or 18
102	102		operated by a municipality that provides electricity. 19
103	103		(B) “Municipal utility” includes without limitation a: 20
104	104		(i) Utility system managed or operated by a 21
105	105		nonprofit corporation under § 14 -199-701 et seq.; and 22
106	106		(ii) Utility system owned or operated by a 23
107	107		municipality or by a co nsolidated utility district under the General 24
108	108		Consolidated Public Utility System Improvement District Law, § 14 -217-101 et 25
109	109		seq.; 26
110	110		(5)(6) “Net excess generation” means the amount of electricity 27
111	111		as measured in kilowatt hours or kilowatt hours multiplied by the applicable 28
112	112		rate that a net-metering customer has fed back to the electric utility that 29
113	113		exceeds the amount of electricity as measured in kilowatt hours or kilowatt 30
114	114		hours multiplied by the applicable rate used by that customer during the 31
115	115		applicable period determined by a commission; 32
116	116		(6)(7) “Net metering” means measuring a billing option that 33
117	117		measures the difference in amount of electricity as measured in kilowatt 34
118	118		hours or kilowatt hours multiplied by the applicable rate supplied by an 35
119		-	electric utility to a an individual net-metering customer and separately 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	119	+	electric utility to a an individual net-metering customer and separately 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
120	120
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123	123
124	124		measuring the electricity as measured in kilowatt hours generated by a net-1
125	125		metering customer and an individual net-metering customer's net -metering 2
126	126		facility and fed back to the electric utility over the applicable period 3
127	127		determined by a commission ; 4
128	128		(8) "Net-metering surplus" means the dollar value resulting from 5
129	129		multiplying the avoided cost of the electric utility to all kilowatt hours 6
130	130		supplied to the electric utility by a net -metering customer during the 7
131	131		applicable billing period under § 23 -18-604(c)(4); 8
132	132		(7)(9)(A) “Net-metering customer” means a an individual customer 9
133	133		of an electric utility that: 10
134	134		(A)(i) Is an owner of a net -metering facility; 11
135	135		(B)(ii) Leases a net-metering facility subject to the 12
136	136		following limitations: 13
137	137		(i)(a) A lease shall not permit the sale of electric 14
138	138		energy measured in kilowatt hours or electric c apacity measured in kilowatts 15
139	139		between the lessor and lessee; and 16
140	140		(ii)(b) A lease shall not include any charge per 17
141	141		kilowatt hour or any charge per kilowatt; or 18
142	142		(C)(iii)(a) Is a government entity or other entity that is 19
143	143		exempt from state and federal income tax, and that, for the sole purpose of 20
144	144		this subchapter, obtains electric energy from a net -metering facility under a 21
145	145		service contract qualifying for safe -harbor protection as provided under 26 22
146	146		U.S.C. § 7701(e)(3)(A), as in effect on July 24, 2019; August 16, 2022. 23
147	147		(b) Revenues collected under contracts for 24
148	148		obtaining electric energy from a net -metering facility under a service 25
149	149		contract qualifying for safe -harbor protection as provided under 26 U.S.C. § 26
150	150		7701(e)(3)(A), as in effect on August 16, 2022, are exempt from state and 27
151	151		local sales taxes. 28
152	152		(B) "Net-metering customer" does not mean a customer that 29
153	153		is an interruptible customer of the electric utility and takes service under 30
154	154		an electric utility's rate schedule for interruptible service, unless a 31
155	155		commission has: 32
156	156		(i) Considered an application and issued an order, before 33
157	157		December 31, 2022, addressing an individual net -metering customer's 34
158	158		application for approval of a net -metering facility with a name plate 35
159		-	generating capacity in excess of ten thousand kilowatts (10,000 kW) where an 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	159	+	generating capacity in excess of ten thousand kilowatts (10,000 kW) where an 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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163	163
164	164		individual net-metering customer also takes service under an electric 1
165	165		utility's rate schedule for interruptible service; and 2
166	166		(ii) Concluded that it is in the public interest for that 3
167	167		individual interruptible customer to be a net -metering customer; 4
168	168		(8)(10) “Net-metering facility” means a facility for the 5
169	169		production of electric energy to meet all or part of a net -metering 6
170	170		customer's need for electric energy within a single utility's allocated 7
171	171		service territory that: 8
172	172		(A) Uses solar, wind, hydroelectric, geothermal, or 9
173	173		biomass resources to generate electricity, including, but not limited to, 10
174	174		fuel cells and micro turbines that generate electricity if the fuel source is 11
175	175		entirely derived from renewable resourc es; 12
176	176		(B)(i) Has a nameplate generating capacity of not more 13
177	177		than: 14
178	178		(i)(a) The greater of twenty -five kilowatts (25 kW) 15
179	179		or one For a residential customer for residential use, the lesser of twenty -16
180	180		five kilowatts (25 kW) alternating current or one hundred percent (100%) of 17
181	181		the net-metering customer's highest monthly usage in the previous twelve (12) 18
182	182		months for residential use; 19
183	183		(ii)(b) For customers of electric utilities, one 20
184	184		thousand kilowatts (1,000 kW) for use other than residential use unless 21
185	185		otherwise allowed by a commission under § 23 -18-604 For nonresidential 22
186	186		customers of electric utilities for nonresidential use, less than or equal to 23
187	187		the lesser of five thousand kilowatts (5,000 kW) alternating current or one 24
188	188		hundred percent (100%) of the net -metering customer's highest monthly usage 25
189	189		in the previous twelve (12) months within a single utility's allocated 26
190	190		service territory where a single net -metering facility is physically located 27
191	191		behind a net-metering customer's electric utility meter that repr esents one 28
192	192		hundred percent (100%) of the net -metering customer's energy usage served by 29
193	193		the net-metering facility; or 30
194	194		(iii)(c) For customers of a municipal utility, 31
195	195		the limits established by the governing body of the municipal utility under § 32
196	196		23-18-605;. 33
197	197		(ii)(a) The total nameplate generating capacity of 34
198	198		all net-metering facilities owned by, leased by, or providing electric energy 35
199		-	under one (1) or more qualifying service contracts of an individual net -36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	199	+	under one (1) or more qualifying service contracts of an individual net -36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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204		-	metering customer serving multiple meter ~~locations under common ownership of~~ 1
205		-	any net-metering customer, within a ~~single utility's allocated service~~ 2
206		-	territory, shall be less than or equal to ~~the lesser of five thousand~~ 3
207		-	kilowatts (5,000 kW) alternating current or one ~~hundred percent (100%) of the~~ 4
208		-	net-metering customer's highest monthly usage ~~in the previous twelve (12)~~ 5
209		-	months, unless: 6
	204	+	metering customer for any net-metering facilities serving multiple meter 1
	205	+	locations under common ownership of any net -metering customer, within a 2
	206	+	single utility's allocated service territory, shall be less than or equal to 3
	207	+	the lesser of five thousand kilowatts (5,000 kW) alternating current or one 4
	208	+	hundred percent (100%) of the net -metering customer's highest monthly usage 5
	209	+	in the previous twelve (12) months, unless: 6
210	210		(1) A commission approved a greater 7
211	211		amount for an individual net -metering customer before December 31, 2022 ; 8
212	212		(2) An individual net -metering customer 9
213	213		has executed a contract with a net -metering facility developer by February 10
214	214		22, 2023, to purchase a net -metering facility with a nameplate capacity not 11
215	215		to exceed twenty thousand kilowatts (20,000 kW) and has filed that contract 12
216	216		with a commission under a protective order by March 31, 2023; or 13
217	217		(3) An individual net -metering customer 14
218	218		has filed an application with a commission for approval of a net -metering 15
219	219		facility with a nameplate generating capacity not to exceed twenty thousand 16
220	220		kilowatts (20,000 kW) before December 31, 2022. 17
221	221		(b)(1) A net-metering 18
222	222		facility serving multiple meter locations under common ownership shall be 19
223	223		located on a separate property from any other net -metering facility or o nly 20
224	224		co-locate on a property with one (1) other net -metering facility within a 21
225	225		single utility's allocated service territory. 22
226	226		(2) For a net-metering facility under 23
227	227		subdivision (10)(B)(ii)(b)(1) of this section, the nameplate generating 24
228	228		capacity under this subdivision (10)(B)(ii) includes the total kilowatt 25
229	229		nameplate-generating capacity of all net -metering facilities serving mult iple 26
230	230		meter locations under common ownership within a single electric utility's 27
231	231		allocated service territory owned by, leased by, or providing electric energy 28
232	232		under one (1) or more qualifying service contracts to a net -metering 29
233	233		customer, including without li mitation any net-metering facilities serving 30
234	234		multiple meter locations under common ownership; 31
235	235		(C) Is located in Arkansas; 32
236	236		(D) Can operate in parallel with an electric utility's 33
237	237		existing transmission and distribution facilities existing distributio n 34
238	238		facilities or, if permitted by the electric utility, an electric utility's 35
239		-	transmission facilities ; 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	239	+	transmission facilities ; 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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244	244		(E) Is intended primarily to offset part or all of the an 1
245	245		individual net-metering customer customer's requirements for electricity; and 2
246	246		(F)(i) May include an energy storage device that is 3
247	247		configured to receive electric energy solely from a net -metering facility. 4
248	248		(ii) The capacity of an energy storage device shall 5
249	249		not be used to calculate the capacity limits listed in subdivision 6
250	250		(8)(B)(10)(B) of this section if the energy storage device is configured to 7
251	251		receive electric energy solely from a net -metering facility; 8
252	252		(9) “Quantifiable benefits” means the: 9
253	253		(A) Reasonably demonstrated costs that: 10
254	254		(i) Are related to the provision of electri c service 11
255	255		and based on the utility's most recent cost -of-service study filed with the 12
256	256		commission; and 13
257	257		(ii) Will be avoided by the utility by the use of 14
258	258		net metering; 15
259	259		(B) Monetary value provided to a utility by the use of net 16
260	260		metering as specified by a market mechanism, if any, of the regional 17
261	261		transmission organization of which the electric utility is a member; and 18
262	262		(C) Monetary value provided to a utility by the use of net 19
263	263		metering as specified by a market mechanism, if any, that measures utilit y 20
264	264		distribution system benefits; and 21
265	265		(10)(11) “Renewable energy credit” means the environmental, 22
266	266		economic, and social attributes of a unit of electricity, such as a megawatt 23
267	267		hour, generated from renewable fuels that can be sold or traded separately. 24
268	268		25
269	269		23-18-604. Commission authority — Definition. 26
270	270		(a)(1) An electric utility shall allow net -metering facilities to be 27
271	271		interconnected using , at a minimum, a single standard two-channel digital 28
272	272		meter capable of registering the flow of electricity in two (2) di rections 29
273	273		that separately measures the electric energy in kilowatt hours that is: 30
274	274		(A) Supplied by an electric utility to the net -metering 31
275	275		customer; and 32
276	276		(B) Generated by the net -metering customer's net -metering 33
277	277		facility and fed back to an electric utility. 34
278	278		(2) An electric utility may impose a charge to recover any cost 35
279		-	of the standard two-channel digital meter that is not otherwise included in 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	279	+	of the standard two-channel digital meter that is not otherwise included in 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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283	283
284	284		the rates paid by the net -metering customer. 1
285	285		(b)(1) Following notice, and opportunity for public comment , and a 2
286	286		hearing, a commission shall: 3
287	287		(1) Shall establish appropriate rates, terms, and conditions for 4
288	288		net metering, including without limitation the adoption or revision of any 5
289	289		applicable rules on or before December 31, 2023;. 6
290	290		(2) For net-metering customers who receive service under a rate 7
291	291		that does not include a demand component, may: 8
292	292		(A) Require an electric utility to credit the net -metering 9
293	293		customer with any accumulated net excess generation as measured in kilowat t 10
294	294		hours or kilowatt hours multiplied by the applicable rate in the next 11
295	295		applicable billing period and base the bill of the net -metering customer on 12
296	296		the net amount of electricity as measured in kilowatt hours or kilowatt hours 13
297	297		multiplied by the applicable r ate that the net-metering customer has received 14
298	298		from or fed back to the electric utility during the billing period; 15
299	299		(B) Take the following actions if those actions are in the 16
300	300		public interest and doing so will not result in an unreasonable allocation of 17
301	301		or increase in costs to other utility customers: 18
302	302		(i) Separately meter the electric energy, measured 19
303	303		in kilowatt hours, supplied by the electric utility to the net -metering 20
304	304		customer and the electric energy, measured in kilowatt hours, that is 21
305	305		generated by the net-metering customer's net -metering facility that is fed 22
306	306		back to the electric utility at any time during the applicable billing 23
307	307		period; 24
308	308		(ii) Apply the commission -approved retail rate to 25
309	309		all kilowatt hours that are supplied by the electric ut ility to a net-26
310	310		metering customer by the electric utility during the applicable period 27
311	311		determined by a commission; 28
312	312		(iii) Apply the avoided cost of the electric utility 29
313	313		plus any additional sum determined under subdivision (b)(2)(B)(iv) of this 30
314	314		section to all kilowatt hours supplied to the electric utility by a net -31
315	315		metering customer, during the period determined by a commission, which shall 32
316	316		be credited to the total bill of the net -metering customer in a dollar value; 33
317	317		and 34
318	318		(iv) The additional sum added to the avoided cost of 35
319		-	the electric utility may be applied after the demonstration of quantifiable 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	319	+	the electric utility may be applied after the demonstration of quantifiable 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
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323	323
324	324		benefits by the net-metering customer and shall not exceed forty percent 1
325	325		(40%) of the avoided cost of the electric utility; 2
326	326		(C) Authorize an electric ut ility to assess a net -metering 3
327	327		customer that is being charged a rate that does not include a demand 4
328	328		component a per-kilowatt-hour fee or charge to recover the quantifiable 5
329	329		direct demand-related distribution cost of the electric utility for providing 6
330	330		electricity to the net-metering customer that is not: 7
331	331		(i) Avoided as a result of the generation of 8
332	332		electricity by the net -metering facility; and 9
333	333		(ii) Offset by quantifiable benefits; or 10
334	334		(D) Take other actions that are in the public interest and 11
335	335		do not result in an unreasonable allocation of costs to other utility 12
336	336		customers; The right to a hearing under this subsection may be waived by the 13
337	337		parties. 14
338	338		(c) Through its actions under subdivision (b)(1) of this section, a 15
339	339		commission shall: 16
340	340		(1)(A) Ensure that each net -metering customer pays the costs of 17
341	341		an electric utility's facilities and associated expenses required to: 18
342	342		(i) Provide service to the net -metering customer; 19
343	343		and 20
344	344		(ii) Enable the net -metering customer's use of the 21
345	345		electric utility's facilities. 22
346	346		(B) The costs described under subdivision (c)(1)(A) of 23
347	347		this section include without limitation any costs that are: 24
348	348		(i) Recovered through rates using the cost -of-25
349	349		service study underlying the rates approved by a commissio n in the electric 26
350	350		utility's most recent application for a general change or modification of the 27
351	351		electric utility's rates under § 23 -4-401 et seq.; 28
352	352		(ii) Recovered through riders or surcharges; and 29
353	353		(iii) Adjusted for any commission -approved: 30
354	354		(a) Formula rate plan adjustments under the 31
355	355		Formula Rate Review Act, § 23 -4-1201 et seq.; or 32
356	356		(b) Adjustments under § 23 -4-901 et seq. 33
357	357		(C) By December 31, 2023, a commission shall approve 34
358	358		modifications to each electric utility's rate schedules ap plicable to net-35
359		-	metering customers pursuant to the rate structure the electric utility elects 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	359	+	metering customers pursuant to the rate structure the electric utility elects 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
360	360
361		-	10 02-28-2023 14:34:33 CRH048
	361	+	10 02-27-2023 10:55:55 CRH048
362	362
363	363
364	364		under § 23-18-606(a); 1
365	365		(2) Allow an electric utility to modify the rates, terms, and 2
366	366		conditions, including without limitation the rate structure and any 3
367	367		individual rate components for net -metering customers, subject to approval by 4
368	368		the commission, without filing an application for a general change or 5
369	369		modification of the electric utility's rates under § 23 -4-401 et seq.; 6
370	370		(3) Not adjust the costs of an electric u tility's facilities and 7
371	371		associated expenses required to provide service to a net -metering customer 8
372	372		and to enable the net -metering customer's use of the electric utility's 9
373	373		facilities as specified in subdivision (c)(1)(A) of this section with any 10
374	374		amounts that are not quantified in the cost -of-service study underlying the 11
375	375		retail rates approved by a commission in the electric utility's most recent 12
376	376		application for a general change or modification in rates under § 23 -4-401 et 13
377	377		seq., including without limitation an y commission-approved: 14
378	378		(A) Formula rate plan adjustments under the Formula Rate 15
379	379		Review Act, § 23-4-1201 et seq.; or 16
380	380		(B) Adjustments under § 23 -4-901 et seq.; 17
381	381		(4) Establish rates for a net -metering customer using one (1) of 18
382	382		the rate structures un der § 23-18-606; 19
383	383		(5) Separately meter the electric energy, measured in kilowatt 20
384	384		hours, supplied by the electric utility to the net -metering customer and the 21
385	385		electric energy, measured in kilowatt hours, that is fed back to the electric 22
386	386		utility from the net-metering customer's net -metering facility at any time 23
387	387		during the applicable billing period; 24
388	388		(6) Apply the commission -approved customer charge, demand 25
389	389		charge, or minimum bill provision and other applicable commission -approved 26
390	390		charges addressed in subd ivision (c)(1)(A) of this section; 27
391	391		(7) Apply the commission -approved charges addressed in 28
392	392		subdivision (c)(1)(A) of this section to the applicable net -metering 29
393	393		customers, including without limitation any rates, riders, and surcharges 30
394	394		that are applied bas ed on the volume of kilowatt hours of electricity 31
395	395		supplied by an electric utility, to all kilowatt hours that are supplied by 32
396	396		the electric utility to a net -metering customer by the electric utility 33
397	397		during the applicable billing period; 34
398	398		(8) Authorize an electric utility to recover any net -metering 35
399		-	surplus or the dollar value of any net excess generation applied to the bills 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	399	+	surplus or the dollar value of any net excess generation applied to the bills 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
400	400
401		-	11 02-28-2023 14:34:33 CRH048
	401	+	11 02-27-2023 10:55:55 CRH048
402	402
403	403
404	404		of net-metering customers in the same manner that the electric utility 1
405	405		recovers the cost of fuel and purchased energy; 2
406	406		(3) Shall require that net-metering equipment be installed to 3
407	407		accurately measure the electricity: 4
408	408		(A) Supplied by the electric utility to each net -metering 5
409	409		customer; and 6
410	410		(B) Generated by each net -metering customer that is fed 7
411	411		back to the electric utility over the applicable billing period; 8
412	412		(4) May authorize (9)(A) Authorize an electric utility to 9
413	413		assess a net-metering customer a greater fee or charge of any type, if the 10
414	414		electric utility's direct costs of interconnection and administration of net 11
415	415		metering outweigh the distribution system, environmental, and public policy 12
416	416		benefits of allocating the costs among the electric utility's entire customer 13
417	417		base standard one-time fee, to be approved by the commission, to recover 14
418	418		administrative and related interconnect ion review costs. 15
419	419		(B) Any costs incurred by the electric utility for an 16
420	420		interconnection study are the sole responsibility of the net -metering 17
421	421		customer and shall be paid in advance of any work's being undertaken by the 18
422	422		electric utility to: 19
423	423		(i) Enable the interconnection; and 20
424	424		(ii) Recover the electric utility's direct costs of 21
425	425		interconnection and any grid upgrades required to connect the net -metering 22
426	426		customer's net-metering facility; 23
427	427		(10)(A) Require that a net -metering customer retains any 24
428	428		renewable energy credit created as a result of the electricity supplied by a 25
429	429		net-metering customer that generated the renewable energy credit. 26
430	430		(B) The renewable energy credit may be retained, retired, 27
431	431		or sold for the sole benefit of the net -metering customer; and 28
432	432		(5) For net-metering customers who receive service under a rate 29
433	433		that does not include a demand component, shall require an electric utility 30
434	434		to credit a net-metering customer with the amount of any accumulated net 31
435	435		excess generation as measure d in kilowatt hours or kilowatt hours multiplied 32
436	436		by the applicable rate in the next applicable billing period; 33
437	437		(6) Except as provided in subdivision (b)(9) of this section, 34
438	438		for net-metering customers who receive service under a rate that includes a 35
439		-	demand component, shall ~~requ ire~~ an electric utility to credit the net -36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	439	+	demand component, shall require an electric utility to credit the net -36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
440	440
441		-	12 02-28-2023 14:34:33 CRH048
	441	+	12 02-27-2023 10:55:55 CRH048
442	442
443	443
444	444		metering customer with any accumulated net excess generation in the next 1
445	445		applicable billing period and base the bill of the net -metering customer on 2
446	446		the net amount of electricity that the ne t-metering customer has received 3
447	447		from or fed back to the electric utility during the billing period; 4
448	448		(7) May expand the scope of net metering to include additional 5
449	449		facilities that do not use a renewable energy resource for a fuel if so doing 6
450	450		results in distribution system, environmental, or public policy benefits; 7
451	451		(8) Shall provide that: 8
452	452		(A)(i) The amount of the net excess generation credit as 9
453	453		measured in kilowatt hours or kilowatt hours multiplied by the applicable 10
454	454		rate remaining in a net -metering customer's account at the close of a billing 11
455	455		cycle shall not expire and shall be carried forward to subsequent billing 12
456	456		cycles indefinitely. 13
457	457		(ii) However, for net excess generation credits 14
458	458		older than twenty-four (24) months, a net -metering customer may elect to have 15
459	459		the electric utility purchase the net excess generation credits in the net -16
460	460		metering customer's account at the electric utility's avoided cost, plus any 17
461	461		additional sum determined under this section, if the sum to be paid to the 18
462	462		net-metering customer is at least one hundred dollars ($100). 19
463	463		(iii) An electric utility shall purchase at the 20
464	464		electric utility's avoided cost, plus any additional sum determined under 21
465	465		this section, any net excess generation credit remaining in a net -metering 22
466	466		customer's account when the net -metering customer: 23
467	467		(a) Ceases to be a customer of the electric 24
468	468		utility; 25
469	469		(b) Ceases to operate the net -metering 26
470	470		facility; or 27
471	471		(c) Transfers the net -metering facility to 28
472	472		another person; and 29
473	473		(B) A renewable energy credit created as the result of 30
474	474		electricity supplied by a net -metering customer is the property of the net -31
475	475		metering customer that generated the renewable energy credit; and 32
476	476		(9) May allow a net -metering facility with a generating capacity 33
477	477		that exceeds the limits provided under § 23 -18-603(8)(B)(ii) or § 23 -18-34
478	478		603(8)(B)(iii) of up to twenty thousand kilowatts (20,000 kW) if: 35
479		-	(A) For any net-metering facility with a generating 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	479	+	(A) For any net-metering facility with a generating 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
480	480
481		-	13 02-28-2023 14:34:33 CRH048
	481	+	13 02-27-2023 10:55:55 CRH048
482	482
483	483
484	484		capacity of less than five thousand kilowatts (5,000 kW): 1
485	485		(i) The net-metering facility is not for residential 2
486	486		use; 3
487	487		(ii) Increasing the generating capacity limits for 4
488	488		individual net-metering facilities results in distribution system, 5
489	489		environmental, or public policy benefits or allowing an increased generating 6
490	490		capacity for the net-metering facility would increase the state's ability to 7
491	491		attract businesses to Arkansas; and 8
492	492		(iii) Allowing an increased generating capacity for 9
493	493		the net-metering facility is in the public interest; or 10
494	494		(B) For any net-metering facility with a generating 11
495	495		capacity of greater than five thousand kilowatts (5,000 kW): 12
496	496		(i) The net-metering facility is not for residential 13
497	497		use; 14
498	498		(ii) Increasing the generating capacity limits for 15
499	499		individual net-metering facilities results in distributi on system, 16
500	500		environmental, or public policy benefits or allowing an increased generating 17
501	501		capacity for the net -metering facility would increase the ability of the 18
502	502		state to attract business to Arkansas; 19
503	503		(iii) Allowing an increased generating capacity for 20
504	504		the net-metering facility does not result in an unreasonable allocation of 21
505	505		costs to other utility customers; and 22
506	506		(iv) Allowing an increased generating capacity for 23
507	507		the net-metering facility is in the public interest; and 24
508	508		(10)(A) Shall allow the ne t-metering facility of a net -metering 25
509	509		customer who has submitted a standard interconnection agreement, as referred 26
510	510		to in the rules of the Arkansas Public Service Commission, to the electric 27
511	511		utility after July 24, 2019, but before December 31, 2022, to rema in under 28
512	512		the rate structure in effect when the net -metering contract was signed, for a 29
513	513		period not to exceed twenty (20) years, subject to approval by a commission. 30
514	514		(B) A net-metering facility under subdivision (b)(10)(A) 31
515	515		of this section remains subject to any other change or modification in rates, 32
516		-	terms, and conditions (11)(A) Allow a net-metering ~~facility of an individual~~ 33
517		-	~~net-metering customer to remain under~~ the rate structure in effect before 34
518		-	~~December 31, 2022, as set forth in § 23 -~~18-606(a)(2)(A)-(G), until June 1, 35
519		-	~~2040, if the net-metering~~ ~~customer has:~~ 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	516	+	terms, and conditions (11)(A) Allow a net -metering customer to remain under 33
	517	+	the rate structure in effect before December 31, 2022, as set forth in § 23 -34
	518	+	18-606(a)(2)(A)-(G), until June 1, 2040, if the net -metering customer has: 35
	519	+	(i) Submitted a standard interconnection agreement 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
520	520
521		-	14 02-28-2023 14:34:33 CRH048
	521	+	14 02-27-2023 10:55:55 CRH048
522	522
523	523
524		-	~~(i) Submitted a standard interconnection agreement~~ 1
525		-	~~to the electric utility before September 30,~~ ~~2024;~~ 2
526		-	~~(ii) Submitted a facilities agreement or equivalent~~ 3
527		-	~~document~~ to ~~establish an account with an electric utilit y and paid all costs~~ 4
528		-	~~of constructing the electric utility facilities necessary to interconnect the~~ 5
529		-	~~net-metering facility before September 30,~~ ~~2024; or~~ 6
530		-	~~(iii) Filed~~ a ~~complaint with a commission addressing~~ 7
531		-	~~a disputed facilities agreement or equivalent document to establish~~ an 8
532		-	~~account with an~~ electric utility ~~and paid all costs of constructing~~ the 9
533		-	~~electric utility facilities necessary to interconnect the net -metering~~ 10
534		-	~~facility before September 30,~~ ~~2024 .~~ 11
535		-	~~(B) A net-metering facility~~ of ~~an individual net-metering~~ 12
536		-	~~customer that does not meet the requirements of subdivision~~ (~~c)(11)(A~~) of 13
537		-	~~this section shall be~~ billed using ~~one (1) of~~ the rate ~~structures established~~ 14
538		-	in ~~§ 23-18-606.~~ 15
539		-	~~(C) A net-metering~~ ~~facility billed using the rate~~ 16
540		-	~~structures described in subdivisions (c)(11)(A) and (B) of this section~~ 17
541		-	~~remains subject to any other change or modification~~ in ~~rates, terms,~~ ~~and~~ 18
542		-	~~conditions.~~ 19
543		-	~~(c)(1)(d)~~(1) ~~Except as provided in subdivision (c)(2)(d)(2) of this~~ 20
544		-	~~section, an electric utility shall separately met er, bill, and credit each~~ 21
545		-	net-metering ~~facility even if one (1) or more net -metering facilities are~~ 22
546		-	~~under common ownership.~~ 23
547		-	(2)(A)(i) At the ~~an individual~~ net-metering ~~customer's~~ 24
548		-	~~discretion,~~ an ~~electric utility may shall apply~~ net-metering ~~credits for~~ 25
549		-	~~customers who are billed under § 23 -18-606(a)(2)(A)-(G) or the~~ net-metering 26
550		-	~~surplus for all other customers from a an~~ individual net-metering customer's 27
551		-	~~net-metering facility to the bill for another~~ meter location of the 28
552		-	~~individual~~ net-metering customer ~~if the net-metering~~ ~~facility and the~~ 29
553		-	~~separate meter location are under common ownership of the same individual~~ 30
554		-	~~net-metering customer~~ within a ~~single electric utility's allocated service~~ 31
555		-	~~area territory and:~~ 32
556		-	~~(a) Are located within a one hundred (100)~~ 33
557		-	~~miles radius of the individual net -metering~~ ~~customer's net -metering facility,~~ 34
558		-	~~unless:~~ 35
559		-	(1) ~~A commission approved a greater~~ 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	524	+	to the electric utility before September 30, 2024; 1
	525	+	(ii) Submitted a facilities agreement or equivalent 2
	526	+	document to establish an account with an electric utility and paid all costs 3
	527	+	of constructing the electric utility facilities necessary to interconnect the 4
	528	+	net-metering facility before September 30, 2024; or 5
	529	+	(iii) Filed a complaint with a commission addressing 6
	530	+	a disputed facilities agreement or equivalent document to est ablish an 7
	531	+	account with an electric utility and paid all costs of constructing the 8
	532	+	electric utility facilities necessary to interconnect the net -metering 9
	533	+	facility before September 30, 2024 . 10
	534	+	(B) A net-metering customer that does not meet the 11
	535	+	requirements of subdivision (c)(11)(A) of this section shall be billed using 12
	536	+	one (1) of the rate structures established in § 23 -18-606. 13
	537	+	(C) A net-metering facility billed using the rate 14
	538	+	structures described in subdivisions (c)(11)(A) and (B) of this section 15
	539	+	remains subject to any other change or modification in rates, terms, and 16
	540	+	conditions. 17
	541	+	(c)(1)(d)(1) Except as provided in subdivision (c)(2)(d)(2) of this 18
	542	+	section, an electric utility shall separately meter, bill, and credit each 19
	543	+	net-metering facility even if one (1) or more net -metering facilities are 20
	544	+	under common ownership. 21
	545	+	(2)(A)(i) At the an individual net-metering customer's 22
	546	+	discretion, an electric utility may shall apply net-metering credits for 23
	547	+	customers who are billed under § 23 -18-606(a)(2)(A)-(G) or the net-metering 24
	548	+	surplus for all other customers from a an individual net-metering customer's 25
	549	+	net-metering facility to the bill for another meter location of the 26
	550	+	individual net-metering customer if the net-metering facility and the 27
	551	+	separate meter location are under common ownership of the same individual 28
	552	+	net-metering customer within a single electric utility's allocated service 29
	553	+	area territory and: 30
	554	+	(a) Are located within a one hundred (100) 31
	555	+	miles radius of the individual net -metering customer's net-metering facility, 32
	556	+	unless: 33
	557	+	(1) A commission approved a greater 34
	558	+	distance for an individual net -metering customer before December 31, 2022; 35
	559	+	(2) An individual net -metering customer 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
560	560
561		-	15 02-28-2023 14:34:33 CRH048
	561	+	15 02-27-2023 10:55:55 CRH048
562	562
563	563
564		-	~~distance for an individual~~ net -metering ~~customer before December 31, 2022;~~ 1
565		-	~~(2) An individual~~ net -metering ~~customer~~ 2
566		-	~~has executed a contract~~ with a ~~net -metering~~ ~~facility developer by February~~ 3
567		-	~~22, 2023,~~ ~~to purchase a net -metering facility~~ with a ~~nameplate capacity not~~ 4
568		-	~~to exceed twenty thousand kilowatts (20,000 kW) with a greater distance and~~ 5
569		-	~~has filed that contract with a co mmission under a protective order by March~~ 6
570		-	~~31, 2023;~~ or 7
571		-	~~(3) An individual net -metering~~ ~~customer~~ 8
572		-	~~has filed an application~~ with a ~~commission for approval of a net -metering~~ 9
573		-	~~facility with~~ a ~~nameplate generating capacity~~ not ~~to exceed twenty thousand~~ 10
574		-	~~kilowatts (20~~,~~000 kW)~~ ~~with~~ a greater distance ~~before December 31, 2022; or~~ 11
575		-	~~(b) For a net-metering~~ ~~facility that did not~~ 12
576		-	~~require approval by a commission~~, ~~are constructed at a greater distance and~~ 13
577		-	~~included in an executed standard interconnection agreemen t submitted before~~ 14
578		-	~~December 31,~~ ~~2023.~~ 15
579		-	~~(ii) Subdivision (c)(2)(A)(i) of this section does~~ 16
580		-	~~not apply if more than two~~ (2) ~~customers that are governmental entities or~~ 17
581		-	~~other entities that are exempt from state and federal income tax defined~~ 18
582		-	~~under § 23-18-603(7)(C) co-locate~~ ~~at a site hosting the~~ net -metering ~~facility~~ 19
583		-	~~A separate meter location under subdivision (d)(2)(A)(i) of this section~~ 20
584		-	~~shall be credited only with~~ net -metering ~~surplus from one (1) net -metering~~ 21
585		-	~~facility owned by the same~~ net -metering ~~customer, with all accounts being~~ 22
586		-	~~under common ownership~~ for the ~~same individual net -metering customer.~~ 23
587		-	~~(B)~~ Net ~~excess generation Net~~-metering ~~surplus shall be~~ 24
588		-	~~credited first to the an individual~~ net-metering ~~customer's bill for the~~ 25
589		-	~~meter to which the net -metering~~ ~~facility is physically attached.~~ 26
590		-	~~(C) After applying net excess generation~~ net-metering 27
591		-	surplus ~~under subdivision (c)(2)(B)(d)(2)(B) of this section and upon request~~ 28
592		-	of the net-metering customer ~~under subdivision (c)(2)(A)(d)(2)(A) of this~~ 29
593		-	~~section, any remaining~~ net ~~excess generation net~~-metering ~~surplus shall be~~ 30
594		-	~~credited to one (1) or more of~~ the individual net-metering customer~~'s bills~~ 31
595		-	~~for the individual net -metering~~ ~~customer's meters in the rank order provided~~ 32
596		-	~~by the individual net-metering customer.~~ 33
597		-	(d)(e) A ~~person who that acts~~ as ~~a lessor or service provider as~~ 34
598		-	~~described in § 23-18-603(7)(B) § 23-18-603(9)(B) or § 23-18-603(7)(C) § 23-~~35
599		-	~~18-603~~(9)~~(C)~~ shall not be ~~considered a public utility as defined in § 23 -1-~~36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	564	+	has executed a contract with a net -metering facility developer by February 1
	565	+	22, 2023, to purchase a net -metering facility with a nameplate capacity not 2
	566	+	to exceed twenty thousand kilowatts (20,000 kW) with a greater distance and 3
	567	+	has filed that contract with a commission under a protective order by March 4
	568	+	31, 2023; or 5
	569	+	(3) An individual net -metering customer 6
	570	+	has filed an application with a commission for approval of a net -metering 7
	571	+	facility with a nameplate generating capacity not to exceed twenty thousand 8
	572	+	kilowatts (20,000 kW) with a greater distance before December 31, 2022; or 9
	573	+	(b) For a net-metering facility that did not 10
	574	+	require approval by a commission, are constructed at a greater distance and 11
	575	+	included in an executed standard interconnection agreement submitted before 12
	576	+	December 31, 2023. 13
	577	+	(ii) Subdivision (c)(2)(A)(i) of this section does 14
	578	+	not apply if more than two (2) customers that are governmental entities or 15
	579	+	other entities that are exempt from state and federal income tax defined 16
	580	+	under § 23-18-603(7)(C) co-locate at a site hosting the net -metering facility 17
	581	+	A separate meter location under subdivision (d)(2)(A)(i) of this section 18
	582	+	shall be credited only with net -metering surplus from one (1) net -metering 19
	583	+	facility owned by the same net -metering customer, with all accounts being 20
	584	+	under common ownership for the same individual net -metering customer. 21
	585	+	(B) Net excess generation Net-metering surplus shall be 22
	586	+	credited first to the an individual net-metering customer's bill for the 23
	587	+	meter to which the net -metering facility is physically attached. 24
	588	+	(C) After applying net excess generation net-metering 25
	589	+	surplus under subdivision (c)(2)(B)(d)(2)(B) of this section and upon request 26
	590	+	of the net-metering customer under subdivision (c)(2)(A)(d)(2)(A) of this 27
	591	+	section, any remaining net excess generation net-metering surplus shall be 28
	592	+	credited to one (1) or more of the individual net-metering customer's bills 29
	593	+	for the individual net -metering customer's meters in the rank order provided 30
	594	+	by the individual net-metering customer. 31
	595	+	(d)(e) A person who that acts as a lessor or service provider as 32
	596	+	described in § 23-18-603(7)(B) § 23-18-603(9)(B) or § 23-18-603(7)(C) § 23-33
	597	+	18-603(9)(C) shall not be considered a public utility as defined in § 23 -1-34
	598	+	101. 35
	599	+	(f) An electric utility shall not be obligated to: 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
600	600
601		-	16 02-28-2023 14:34:33 CRH048
	601	+	16 02-27-2023 10:55:55 CRH048
602	602
603	603
604		-	~~101.~~ 1
605		-	~~(f) An electric utility shall not be obligated~~ to: 2
606		-	~~(1) Accept~~ or ~~release any portion~~ of ~~its~~ or ~~another electric~~ 3
607		-	~~utility's allocated service territory to accommodate the development,~~ 4
608		-	~~construction,~~ or ~~operation~~ of a net -~~metering facility; or~~ 5
609		-	~~(2) Publish, provide, or release any information regarding~~ its 6
610		-	~~electric utility facilities or system to aid in the location of the net -~~7
611		-	~~metering facilities beyond its established site review process~~. 8
612		-	9
613		-	~~23-18-605. Municipal utilities.~~ 10
614		-	~~(a) A~~ municipal utility ~~shall allow net -metering facilities to be~~ 11
615		-	~~interconnected according~~ to ~~the ordinances, rules, or regulations established~~ 12
616		-	~~by the governing body of the municipal utility.~~ 13
617		-	~~(b)~~ The ~~governing body of a municipal utility may elect to follow~~ 14
618		-	~~procedures under § 23 -18-604~~, ~~§ 23-18-606, or § 23-18-607 or may adopt~~ 15
619		-	~~ordinances~~, ~~rules,~~ or ~~regulations establishing the rates, terms, and~~ 16
620		-	~~conditions allowing the interconnection~~ of ~~net -metering facilities, including~~ 17
621		-	~~generation facilities and energy storage devices,~~ ~~whether owned or leased by~~ 18
622		-	~~a customer or operated by a third party on behalf~~ of a ~~customer.~~ 19
623		-	(c) ~~The governing body of a municipal utility may limit the generating~~ 20
624		-	~~capacity of a net-metering~~ ~~facility to less than twenty -five kilowatts (25~~ 21
625		-	~~kW)~~ for ~~residential customers~~ or ~~three hundred kilowatts (300 kW) for~~ 22
626		-	~~nonresidential customers only after the governing body finds that the~~ 23
627		-	~~capacity limit is necessary for reliable~~ utility ~~operations or the public~~ 24
628		-	~~health, safety,~~ or ~~welfare.~~ 25
629		-	~~(d)~~ The ~~governing body~~ of a municipal utility ~~shall not establish a~~ 26
630		-	rate ~~or fee~~ that ~~reduces the value of electric energy from~~ a ~~net -metering~~ 27
631		-	~~facility to below~~ the ~~avoided cost~~ of the municipal utility. 28
632		-	~~(e) For customers who receive service under~~ a ~~rate that includes a~~ 29
633		-	~~demand component,~~ the ~~governing bod y~~ of ~~the municipal utility shall require a~~ 30
634		-	~~municipal utility to credit a~~ net -metering customer ~~with any accumulated net~~ 31
635		-	~~excess generation in~~ the ~~next applicable~~ billing ~~period and base the bill of~~ 32
636		-	~~the customer on the net amount of electricity that the net -metering customer~~ 33
637		-	~~has received from or fed back to the municipal utility during the billing~~ 34
638		-	~~period~~. 35
639		-	36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	604	+	(1) Accept or release any portion of its or another electric 1
	605	+	utility's allocated service territory to accommodate the development, 2
	606	+	construction, or operation of a net -metering facility; or 3
	607	+	(2) Publish, provide, or release any information regarding its 4
	608	+	electric utility facilities or system to aid in the location of the net -5
	609	+	metering facilities beyond its established site review process. 6
	610	+	7
	611	+	23-18-605. Municipal utilities. 8
	612	+	(a) A municipal utility shall allow net -metering facilities to be 9
	613	+	interconnected accordin g to the ordinances, rules, or regulations established 10
	614	+	by the governing body of the municipal utility. 11
	615	+	(b) The governing body of a municipal utility may elect to follow 12
	616	+	procedures under § 23 -18-604, § 23-18-606, or § 23-18-607 or may adopt 13
	617	+	ordinances, rules, or regulations establishing the rates, terms, and 14
	618	+	conditions allowing the interconnection of net -metering facilities, including 15
	619	+	generation facilities and energy storage devices, whether owned or leased by 16
	620	+	a customer or operated by a third party on beh alf of a customer. 17
	621	+	(c) The governing body of a municipal utility may limit the generating 18
	622	+	capacity of a net-metering facility to less than twenty -five kilowatts (25 19
	623	+	kW) for residential customers or three hundred kilowatts (300 kW) for 20
	624	+	nonresidential customers only after the governing body finds that the 21
	625	+	capacity limit is necessary for reliable utility operations or the public 22
	626	+	health, safety, or welfare. 23
	627	+	(d) The governing body of a municipal utility shall not establish a 24
	628	+	rate or fee that reduces the valu e of electric energy from a net -metering 25
	629	+	facility to below the avoided cost of the municipal utility. 26
	630	+	(e) For customers who receive service under a rate that includes a 27
	631	+	demand component, the governing body of the municipal utility shall require a 28
	632	+	municipal utility to credit a net -metering customer with any accumulated net 29
	633	+	excess generation in the next applicable billing period and base the bill of 30
	634	+	the customer on the net amount of electricity that the net -metering customer 31
	635	+	has received from or fed back to the municipal utility during the billing 32
	636	+	period. 33
	637	+	34
	638	+	23-18-606. Rate structure determination. 35
	639	+	(a) At its discretion, an electric utility may elect to use one (1) of 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
640	640
641		-	17 02-28-2023 14:34:33 CRH048
	641	+	17 02-27-2023 10:55:55 CRH048
642	642
643	643
644		-	~~23-18-606.~~ Rate ~~structure determination.~~ 1
645		-	~~(a) At its discretion, an electric utility may elect to use one~~ (1) of 2
646		-	the ~~following rate structures to deve lop rates for net-metering customers:~~ 3
647		-	~~(1) A rate structure in which the electric utility~~: 4
648		-	(A) ~~Separately meters~~ the electric ~~energy, measured in~~ 5
649		-	~~kilowatt hours:~~ 6
650		-	(i) ~~Supplied by~~ the electric utility to the net -7
651		-	metering customer~~; and~~ 8
652		-	~~(ii) Fed back to the electric utility from the net -~~9
653		-	~~metering customer's net -metering facility at any time during~~ the ~~applicable~~ 10
654		-	~~billing period;~~ 11
655		-	~~(B) Applies the:~~ 12
656		-	(i) ~~Commission-approved customer charge, demand~~ 13
657		-	~~charge, minimum bill provision, and other applicable~~ commission -approved 14
658		-	~~charges under § 23-18-~~604(c)(1)(A); 15
659		-	~~(ii) Commission-approved~~ ~~charges under § 23 -18-~~16
660		-	~~604(c)(1)(A)~~ to the ~~applicable net -metering customers, including without~~ 17
661		-	~~limitation any rates,~~ ~~riders,~~ and ~~surcharges applied based on the volume of~~ 18
662		-	~~kilowatt hours~~ of ~~electricity supplied by an~~ electric utility ~~pursuant~~ to ~~the~~ 19
663		-	~~rate structure~~ the electric utility ~~elects under this subsection;~~ ~~and~~ 20
664		-	~~(iii) Avoided cost~~ of the ~~electric utility to all kilowatt hours~~ 21
665		-	~~supplied to the electric utility by a net -~~metering customer ~~during~~ the 22
666		-	applicable ~~billing period to be credited to the total~~ bill of the net -23
667		-	~~metering~~ customer ~~in a dollar value, excluding the customer charge and any~~ 24
668		-	~~applicable demand charge or minimum bill provision that~~ the net -metering 25
669		-	~~customer shall pay each month;~~ 26
670		-	~~(C) Credits the net -metering customer with any accumulated~~ 27
671		-	net-metering ~~surplus as measured in dollars during the next appl icable~~ 28
672		-	~~billing period;~~ ~~and~~ 29
673		-	(D) ~~Credits the bills of the net -metering customer's other~~ 30
674		-	~~meters with~~ the ~~net-metering surplus measured in dollars under § 23 -18-~~31
675		-	~~604~~(d)~~(2); or~~ 32
676		-	~~(2) A rate structure in which the electric utility~~: 33
677		-	(A) ~~Separately meters~~ the electric ~~energy, measured in~~ 34
678		-	~~kilowatt hours:~~ 35
679		-	(i) ~~Supplied by~~ the electric utility to the net -36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	644	+	the following rate structures to develop rates for net -metering customers: 1
	645	+	(1) A rate structure in which the electric utility: 2
	646	+	(A) Separately meters the electric energy, measured in 3
	647	+	kilowatt hours: 4
	648	+	(i) Supplied by the electric utility to the net -5
	649	+	metering customer; and 6
	650	+	(ii) Fed back to the electric utility from the net-7
	651	+	metering customer's net -metering facility at any time during the applicable 8
	652	+	billing period; 9
	653	+	(B) Applies the: 10
	654	+	(i) Commission-approved customer charge, demand 11
	655	+	charge, minimum bill provision, and other applicable commission -approved 12
	656	+	charges under § 23-18-604(c)(1)(A); 13
	657	+	(ii) Commission-approved charges under § 23 -18-14
	658	+	604(c)(1)(A) to the applicable net -metering customers, including without 15
	659	+	limitation any rates, riders, and surcharges applied based on the volume of 16
	660	+	kilowatt hours of electricity supplied by an electric utility pursuant to the 17
	661	+	rate structure the electric utility elects under this subsection; and 18
	662	+	(iii) Avoided cost of the electric utility to all kilowatt hours 19
	663	+	supplied to the electric utility by a net -metering customer during the 20
	664	+	applicable billing period to be credited to the total bill of the net -21
	665	+	metering customer in a dollar value, excluding the customer charge and any 22
	666	+	applicable demand charge or minimum bill provision that the net -metering 23
	667	+	customer shall pay each month; 24
	668	+	(C) Credits the net -metering customer with any accumulated 25
	669	+	net-metering surplus as measured in dollars during the next appl icable 26
	670	+	billing period; and 27
	671	+	(D) Credits the bills of the net -metering customer's other 28
	672	+	meters with the net-metering surplus measured in dollars under § 23 -18-29
	673	+	604(d)(2); or 30
	674	+	(2) A rate structure in which the electric utility: 31
	675	+	(A) Separately meters the electric energy, measured in 32
	676	+	kilowatt hours: 33
	677	+	(i) Supplied by the electric utility to the net -34
	678	+	metering customer; and 35
	679	+	(ii) Fed back to the electric utility from the net -36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
680	680
681		-	18 02-28-2023 14:34:33 CRH048
	681	+	18 02-27-2023 10:55:55 CRH048
682	682
683	683
684		-	metering customer~~; and~~ 1
685		-	~~(ii) Fed back to the electric utility from the net -~~2
686		-	~~metering customer's net -metering facility at any time during~~ the ~~applicabl e~~ 3
687		-	~~billing period;~~ 4
688		-	~~(B) Applies the:~~ 5
689		-	(i) ~~Commission-approved customer charge, demand~~ 6
690		-	~~charge, minimum bill provision, and other applicable~~ commission -approved 7
691		-	~~charges under~~ § 23-18-604(c)(1)(A); and 8
692		-	~~(ii) Commission-approved riders or~~ surcharges ~~under~~ 9
693		-	~~§ 23-18-604(c)(1)(A), including without limitation any rates,~~ ~~riders, and~~ 10
694		-	~~surcharges applied based on the volume of kilowatt hours of electricity~~ 11
695		-	~~supplied by an electric utility pursuant to~~ the ~~rate structure the electric~~ 12
696		-	~~utility elects under this s ubsection~~; 13
697		-	(C) ~~Credits~~ the net ~~-metering customer with any accumulated~~ 14
698		-	~~net excess generation during~~ the ~~next applicable billing period;~~ 15
699		-	~~(D) Calculates~~ the net ~~kilowatt hours of the electric~~ 16
700		-	~~energy supplied by the electric utility to the net -metering customer, less~~ 17
701		-	the ~~net excess generation and any net excess generation carried forward from~~ 18
702		-	~~prior billing periods;~~ 19
703		-	~~(E) Applies~~ the ~~commission -approved retail rate,~~ ~~except as~~ 20
704		-	~~provided in subdivision (a)(2)(B) of this section, not to exceed~~ the ~~kilowatt~~ 21
705		-	~~hours supplied to the~~ net ~~-metering customer by the electric utility during~~ 22
706		-	the applicable ~~billing period;~~ 23
707		-	~~(F) Carries forward any net excess generation that exceeds~~ 24
708		-	~~the kilowatt hours supplied by the electric utility during the applicable~~ 25
709		-	~~billing period to~~ the ~~next billing period~~; 26
710		-	(G) ~~Excludes any net excess generation applied to another~~ 27
711		-	~~meter location of~~ the ~~net -metering~~ ~~customer under § 23 -18-604(d); and~~ 28
712		-	~~(H) Applies the monthly grid charge~~ under ~~§ 23 -18-607~~. 29
713		-	~~(b) A commission shall approve the rates established by a rate~~ 30
714		-	~~structure used by an electric utility under subsection (a) of this section~~. 31
715		-	32
716		-	~~23-18-607.~~ Monthly grid charge. 33
717		-	(a)~~(1) If an electric utility follows~~ the ~~rate structure in § 23 -18-~~34
718		-	~~606(2)~~, ~~the electric utility shall apply a monthly grid charge to:~~ 35
719		-	~~(A) Collect any of the fixed charges that are collected~~ 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	684	+	metering customer's net -metering facility at any time during the applicabl e 1
	685	+	billing period; 2
	686	+	(B) Applies the: 3
	687	+	(i) Commission-approved customer charge, demand 4
	688	+	charge, minimum bill provision, and other applicable commission -approved 5
	689	+	charges under § 23-18-604(c)(1)(A); and 6
	690	+	(ii) Commission-approved riders or surcharges under 7
	691	+	§ 23-18-604(c)(1)(A), including without limitation any rates, riders, and 8
	692	+	surcharges applied based on the volume of kilowatt hours of electricity 9
	693	+	supplied by an electric utility pursuant to the rate structure the electric 10
	694	+	utility elects under this s ubsection; 11
	695	+	(C) Credits the net -metering customer with any accumulated 12
	696	+	net excess generation during the next applicable billing period; 13
	697	+	(D) Calculates the net kilowatt hours of the electric 14
	698	+	energy supplied by the electric utility to the net -metering customer, less 15
	699	+	the net excess generation and any net excess generation carried forward from 16
	700	+	prior billing periods; 17
	701	+	(E) Applies the commission -approved retail rate, except as 18
	702	+	provided in subdivision (a)(2)(B) of this section, not to exceed the kilowatt 19
	703	+	hours supplied to the net -metering customer by the electric utility during 20
	704	+	the applicable billing period; 21
	705	+	(F) Carries forward any net excess generation that exceeds 22
	706	+	the kilowatt hours supplied by the electric utility during the applicable 23
	707	+	billing period to the next billing period; 24
	708	+	(G) Excludes any net excess generation applied to another 25
	709	+	meter location of the net -metering customer under § 23 -18-604(d); and 26
	710	+	(H) Applies the monthly grid charge under § 23 -18-607. 27
	711	+	(b) A commission shall approve the rates established by a rate 28
	712	+	structure used by an electric utility under subsection (a) of this section. 29
	713	+	30
	714	+	23-18-607. Monthly grid charge. 31
	715	+	(a)(1) If an electric utility follows the rate structure in § 23 -18-32
	716	+	606(2), the electric utility shall apply a monthly grid charge to: 33
	717	+	(A) Collect any of the fixed charges that are collected 34
	718	+	through volumetric charges, including without limitation any riders and 35
	719	+	surcharges; and 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
720	720
721		-	19 02-28-2023 14:34:33 CRH048
	721	+	19 02-27-2023 10:55:55 CRH048
722	722
723	723
724		-	~~through volumetric charges,~~ ~~including without limitation any riders~~ and 1
725		-	~~surcharges; and~~ 2
726		-	(B) ~~Exclude the cost of fuel~~ and ~~purchased energy.~~ 3
727		-	(2) The ~~monthly grid ch arge shall be calculated based upon the:~~ 4
728		-	~~(A)~~ Currently approved rates~~; and~~ 5
729		-	(B) ~~Cost-of-service study underlying~~ the ~~electric~~ 6
730		-	~~utility's currently approved rates adjusted for any commission -approved:~~ 7
731		-	(i) ~~Formula rate plan~~ adjustments under ~~the Formula~~ 8
732		-	~~Rate Review Act,~~ ~~§ 23 -4-1201 et seq.; or~~ 9
733		-	~~(ii) Adjustments under § 23 -4-901 et seq.~~ 10
734		-	(b) The ~~monthly grid charge under this section shall be calculated for~~ 11
735		-	~~each customer class as follows:~~ 12
736		-	(~~1)(A~~) ~~Calculate~~ the ~~sum of all~~ fixed costs collected through 13
737		-	~~volumetric~~ rates. 14
738		-	~~(B) The fixed costs collected through volumetric rates~~ 15
739		-	~~shall be any demand-related~~ ~~or customer-related~~ costs ~~collected~~ in ~~rates~~ 16
740		-	~~stated~~ in dollars per kilowatt hour~~; and~~ 17
741		-	~~(2)(A) Convert~~ the fixed costs ~~calculated in~~ subdivision (b)(1) 18
742		-	~~of this~~ section ~~into a rate,~~ ~~expressed in dollars per kilowatt hour,~~ by 19
743		-	~~dividing~~ the ~~total of~~ the ~~fixed costs under subdivision (b)(1) of this~~ 20
744		-	~~section for each customer class by the~~ electric utility's ~~sales during the~~ 21
745		-	~~test-year used to develop the retail~~ rates ~~approved by the commission in the~~ 22
746		-	~~electric utility's most recent application~~ for ~~a general change or~~ 23
747		-	~~modification in rates~~ under ~~§ 23 -4-401 et seq.~~ 24
748		-	(B) The monthly ~~grid charge for each customer class shall~~ 25
749		-	be determined ~~by mult iplying the fixed costs expressed~~ under ~~subdivision~~ 26
750		-	(~~b)(2)(A~~) of this section ~~by the expected monthly output of a one -kilowatt~~ 27
751		-	~~alternating~~ current ~~solar photovoltaic solar system determined under~~ 28
752		-	~~subsection (c) of this section.~~ 29
753		-	(~~c)(1~~) ~~The expected monthl y output of a one-~~kilowatt ~~alternating~~ 30
754		-	~~current solar photovoltaic solar system shall be:~~ 31
755		-	(A~~) Expressed in~~ kilowatt ~~hours; and~~ 32
756		-	(B) ~~Calculated~~ by ~~dividing the expected average annual~~ 33
757		-	~~output for a one-kilowatt alternating current solar photovoltaic s olar system~~ 34
758		-	~~using the process described in subdivisions (c)~~(2) ~~and (3) of this section by~~ 35
759		-	~~twelve (12).~~ 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	724	+	(B) Exclude the cost of fuel and purchased energy. 1
	725	+	(2) The monthly grid ch arge shall be calculated based upon the: 2
	726	+	(A) Currently approved rates; and 3
	727	+	(B) Cost-of-service study underlying the electric 4
	728	+	utility's currently approved rates adjusted for any commission -approved: 5
	729	+	(i) Formula rate plan adjustments under the Formula 6
	730	+	Rate Review Act, § 23 -4-1201 et seq.; or 7
	731	+	(ii) Adjustments under § 23 -4-901 et seq. 8
	732	+	(b) The monthly grid charge under this section shall be calculated for 9
	733	+	each customer class as follows: 10
	734	+	(1)(A) Calculate the sum of all fixed costs collected through 11
	735	+	volumetric rates. 12
	736	+	(B) The fixed costs collected through volumetric rates 13
	737	+	shall be any demand-related or customer-related costs collected in rates 14
	738	+	stated in dollars per kilowatt hour; and 15
	739	+	(2)(A) Convert the fixed costs calculated in subdivision (b)(1) 16
	740	+	of this section into a rate, expressed in dollars per kilowatt hour, by 17
	741	+	dividing the total of the fixed costs under subdivision (b)(1) of this 18
	742	+	section for each customer class by the electric utility's sales during the 19
	743	+	test-year used to develop the retail rates approved by the commission in the 20
	744	+	electric utility's most recent application for a general change or 21
	745	+	modification in rates under § 23 -4-401 et seq. 22
	746	+	(B) The monthly grid charge for each customer class shall 23
	747	+	be determined by mult iplying the fixed costs expressed under subdivision 24
	748	+	(b)(2)(A) of this section by the expected monthly output of a one -kilowatt 25
	749	+	direct current solar photovoltaic solar system determined under subsection 26
	750	+	(c) of this section. 27
	751	+	(c)(1) The expected monthly out put of a one-kilowatt direct current 28
	752	+	solar photovoltaic solar system shall be: 29
	753	+	(A) Expressed in kilowatt hours; and 30
	754	+	(B) Calculated by dividing the expected average annual 31
	755	+	output for a one-kilowatt direct current solar photovoltaic solar system 32
	756	+	using the process described in subdivisions (c)(2) and (3) of this section by 33
	757	+	twelve (12). 34
	758	+	(2) For a fixed-tilt solar photovoltaic system, the average 35
	759	+	annual output for a one -kilowatt direct current solar photovoltaic solar 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
760	760
761		-	20 02-28-2023 14:34:33 CRH048
	761	+	20 02-27-2023 10:55:55 CRH048
762	762
763	763
764		-	~~(2) For a fixed-tilt solar photovoltaic system, the average~~ 1
765		-	~~annual output for a one -~~kilowatt ~~alternating current solar photovoltaic solar~~ 2
766		-	~~system shall be:~~ 3
767		-	(A~~) Expressed in kilowatt hours; and~~ 4
768		-	(B) ~~Determined~~ using ~~the National Renewable Energy~~ 5
769		-	~~Laboratory PVWatts Calculator using a direct current to alternating current~~ 6
770		-	(~~DC/AC~~) ~~ratio of one and one -tenth (1.1) using~~ a single ~~location central to~~ 7
771		-	~~the electric utility's service territory.~~ 8
772		-	~~(3) For a single-axis tracking~~ solar ~~photovoltaic system,~~ ~~the~~ 9
773		-	~~average annual output for a one -~~kilowatt ~~alternating current solar~~ 10
774		-	~~photovoltaic solar system shall be:~~ 11
775		-	(A~~) Expressed in kilowatt hours; and~~ 12
776		-	(B) ~~Determined~~ using ~~the National Renewable Energy~~ 13
777		-	~~Laboratory PVWatts Calculator using a direct current~~ to ~~alternating current~~ 14
778		-	(~~DC/AC~~) ~~ratio~~ of ~~one and three -tenths (1.3) using a single location central~~ 15
779		-	~~to the~~ electric utility~~'s service territory.~~ 16
780		-	~~(d)~~ The ~~monthly grid charge shall not be less than the amount~~ of ~~any~~ 17
781		-	~~electric utility fixed costs~~ that ~~are collected through volumetric charges,~~ 18
782		-	~~including without limitation any riders, and excluding the cost of fuel and~~ 19
783		-	~~purchased energy that the net -metering~~ ~~customer avoids.~~ 20
784		-	21
785		-	~~SECTION 2.~~ ~~Arkansas Code Title 4,~~ ~~Chapter 88, is amended to add an~~ 22
786		-	~~additional subchapter to read as follows:~~ 23
787		-	~~Subchapter 11 — Customer Protections for Net -metering Customers Act~~ 24
788		-	25
789		-	~~4-88-1101. Title~~. 26
790		-	~~This subchapter shall be known and may be cited as "Customer~~ 27
791		-	~~Protections for Net-metering~~ ~~Customers Act"~~. 28
792		-	29
793		-	~~4-88-1102. Definitions.~~ 30
794		-	~~As used in this subchapter:~~ 31
795		-	(1) "Net-metering ~~customer~~" has the same meaning as defined in 32
796		-	the Arkansas Cost-Shifting Prevention Act of 2023, § 23 -18-601 et. seq~~; and~~ 33
797		-	~~(2) "Net-metering facility" has the same meaning as defined in~~ 34
798		-	~~the Arkansas Cost~~-~~Shifting Prevention Act of 2023, § 23 -18-601 et~~. ~~seq~~. 35
799		-	36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	764	+	system shall be: 1
	765	+	(A) Expressed in kilowatt hours; and 2
	766	+	(B) Determined using the National Renewable Energy 3
	767	+	Laboratory PVWatts Calculator using a direct current to alternating current 4
	768	+	(DC/AC) ratio of one and one -tenth (1.1) using a single location central to 5
	769	+	the electric utility's service territory. 6
	770	+	(3) For a single-axis tracking solar photovoltaic system, the 7
	771	+	average annual output for a one -kilowatt direct current solar photovoltaic 8
	772	+	solar system shall be: 9
	773	+	(A) Expressed in kilowatt hours; and 10
	774	+	(B) Determined using the N ational Renewable Energy 11
	775	+	Laboratory PVWatts Calculator using a direct current to alternating current 12
	776	+	(DC/AC) ratio of one and three -tenths (1.3) using a single location central 13
	777	+	to the electric utility's service territory. 14
	778	+	(d) The monthly grid charge shal l not be less than the amount of any 15
	779	+	electric utility fixed costs that are collected through volumetric charges, 16
	780	+	including without limitation any riders, and excluding the cost of fuel and 17
	781	+	purchased energy that the net -metering customer avoids. 18
	782	+	19
	783	+	SECTION 2. Arkansas Code Title 4, Chapter 88, is amended to add an 20
	784	+	additional subchapter to read as follows: 21
	785	+	Subchapter 11 — Customer Protections for Net -metering Customers Act 22
	786	+	23
	787	+	4-88-1101. Title. 24
	788	+	This subchapter shall be known and may be cited as "Customer 25
	789	+	Protections for Net-metering Customers Act". 26
	790	+	27
	791	+	4-88-1102. Definitions. 28
	792	+	As used in this subchapter: 29
	793	+	(1) "Net-metering customer" has the same meaning as defined in 30
	794	+	the Arkansas Cost-Shifting Prevention Act of 2023, § 23 -18-601 et. seq; and 31
	795	+	(2) "Net-metering facility" has the same meaning as defined in 32
	796	+	the Arkansas Cost-Shifting Prevention Act of 2023, § 23 -18-601 et. seq. 33
	797	+	34
	798	+	4-88-1103. Net-metering customer protections. 35
	799	+	The net-metering customer protections shall include without limitation 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
800	800
801		-	21 02-28-2023 14:34:33 CRH048
	801	+	21 02-27-2023 10:55:55 CRH048
802	802
803	803
804		-	~~4-88-1103. Net-metering customer protections.~~ 1
805		-	~~The~~ net~~-metering customer protections shall include without limitation~~ 2
806		-	~~the following,~~ a: 3
807		-	~~(1) Requirement that any person who sells or leases a net -~~4
808		-	~~metering facility or who provides a net -metering service to a net -metering~~ 5
809		-	~~customer under the Arkansas Cost -Shifting Prevention Act of 2023, § 23 -18-601~~ 6
810		-	~~et. seq shall:~~ 7
811		-	(A~~)(i)~~ Provide a prospective ~~or existing net -metering~~ 8
812		-	customer a ~~minimum of five (5) business days to evaluate a proposal to~~ 9
813		-	~~construct a net-metering~~ ~~facility to provide all or part of the prospective~~ 10
814		-	or existing ~~net-metering customer's needs for el ectric energy within a single~~ 11
815		-	~~electric utility's allocated service territory.~~ 12
816		-	(ii) ~~The proposal to~~ the ~~prospective or existing~~ 13
817		-	net-metering customer ~~shall include:~~ 14
818		-	~~(a) A description~~ of ~~the system and the~~ 15
819		-	~~system's placement on~~ the ~~net -metering customer's premises or other location~~ 16
820		-	~~consistent with~~ the ~~requirements of this subchapter;~~ 17
821		-	~~(b) A description of the nameplate generating~~ 18
822		-	~~capacity and expected monthly and~~ annual ~~output of~~ the ~~net -metering facility~~ 19
823		-	~~in kilowatt hours~~; 20
824		-	(c) ~~The~~ estimated ~~annual degradation to~~ the 21
825		-	net-metering facility; 22
826		-	(d) ~~An estimated timeline for~~ the ~~installation~~ 23
827		-	~~of the net-metering~~ facility; 24
828		-	(e) The ~~total cost of~~ the ~~net -metering~~ 25
829		-	~~facility~~; 26
830		-	(f) The ~~amounts due at the signing for and at~~ 27
831		-	~~the completion of~~ the ~~installation~~; 28
832		-	(g) The ~~payment schedule;~~ 29
833		-	~~(h)~~ The ~~payback period;~~ 30
834		-	~~(i)~~ The ~~forecasted savings monthly and annual~~ 31
835		-	~~bill savings provided by the proposed net -metering facility in dollars based~~ 32
836		-	on the ~~rate structure as defined in § 23 -18-606~~; 33
837		-	~~(j) A description of any warranties;~~ 34
838		-	(k) ~~The length of~~ the ~~term of any warranties;~~ 35
839		-	~~and~~ 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	804	+	the following, a: 1
	805	+	(1) Requirement that any person who sells or leases a net -2
	806	+	metering facility or who provides a net -metering service to a net -metering 3
	807	+	customer under the Arkansas Cost -Shifting Prevention Act of 2023, § 23 -18-601 4
	808	+	et. seq shall: 5
	809	+	(A)(i) Provide a pr ospective or existing net -metering 6
	810	+	customer a minimum of five (5) business days to evaluate a proposal to 7
	811	+	construct a net-metering facility to provide all or part of the prospective 8
	812	+	or existing net-metering customer's needs for electric energy within a sin gle 9
	813	+	electric utility's allocated service territory. 10
	814	+	(ii) The proposal to the prospective or existing 11
	815	+	net-metering customer shall include: 12
	816	+	(a) A description of the system and the 13
	817	+	system's placement on the net -metering customer's premises or other location 14
	818	+	consistent with the requirements of this subchapter; 15
	819	+	(b) A description of the nameplate generating 16
	820	+	capacity and expected monthly and annual output of the net -metering facility 17
	821	+	in kilowatt hours; 18
	822	+	(c) The estimated annual degradation to the 19
	823	+	net-metering facility; 20
	824	+	(d) An estimated timeline for the installation 21
	825	+	of the net-metering facility; 22
	826	+	(e) The total cost of the net -metering 23
	827	+	facility; 24
	828	+	(f) The amounts due at the signing for and at 25
	829	+	the completion of the installation; 26
	830	+	(g) The payment schedule; 27
	831	+	(h) The payback period; 28
	832	+	(i) The forecasted savings monthly and annual 29
	833	+	bill savings provided by the proposed net -metering facility in dollars based 30
	834	+	on the rate structure as defined in § 23 -18-606; 31
	835	+	(j) A description of any warranties; 32
	836	+	(k) The length of the term of any warranties; 33
	837	+	and 34
	838	+	(l) Notice that the prospective or existing 35
	839	+	net-metering customer may file a complaint with the Attorney General; 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
840	840
841		-	22 02-28-2023 14:34:33 CRH048
	841	+	22 02-27-2023 10:55:55 CRH048
842	842
843	843
844		-	(l) ~~Notice that~~ the ~~prospective~~ or ~~existing~~ 1
845		-	net-metering customer ~~may file a complaint with the Attorney General;~~ 2
846		-	~~(B) Perform an energy eff iciency audit on~~ the ~~potential or~~ 3
847		-	~~existing~~ net-metering ~~customer's premises and any customer meter locations~~ to 4
848		-	~~be served by~~ the ~~proposed net -metering facility as part~~ of ~~the proposal to~~ 5
849		-	~~sell~~ or ~~lease a net-metering facility~~ or ~~provide a~~ net -metering ~~service to a~~ 6
850		-	~~net-metering~~ customer ~~under the Arkansas Cost -Shifting Prevention Act~~ of 7
851		-	~~2023, § 23-18-601 et. seq, or~~ inform the prospective or existing net -metering 8
852		-	customer of ~~how to obtain an~~ energy efficiency ~~audit; and~~ 9
853		-	~~(C) Inform~~ the ~~prospective~~ or ~~exist ing~~ net-metering 10
854		-	customer of the ~~available energy efficiency measures to address the results~~ 11
855		-	~~of the audit as part~~ of ~~the proposal to sell or lease a net -metering facility~~ 12
856		-	~~or provide a net-metering service~~ to a net -metering ~~customer under the~~ 13
857		-	~~Arkansas Cost-Shifting~~ ~~Prevention Act of 2023, § 23 -18-601~~ ~~et. seq;~~ 14
858		-	~~(2) Demonstration to the prospective or existing net -metering~~ 15
859		-	~~customer that~~ the ~~proposed net~~ -metering ~~facility meets all applicable safety~~ 16
860		-	~~requirements and standards;~~ ~~and~~ 17
861		-	~~(3) Demonstration~~ to ~~the prospective or existing~~ net -metering 18
862		-	~~customer that the person who sells~~ or ~~leases a net -metering facility or who~~ 19
863		-	~~provides~~ a ~~net metering service to a net metering customer holds:~~ 20
864		-	~~(A) All required permits to install~~, ~~construct, or operate~~ 21
865		-	~~a net-metering~~ ~~facility in the state, and, if the governing county, city,~~ or 22
866		-	~~local authority does not require an electrical inspection,~~ ~~an executed~~ 23
867		-	~~certification that no electrical inspection or permit is required;~~ and 24
868		-	~~(B) A bond or other acceptable financial secu rity to~~ 25
869		-	~~ensure proper maintenance of the net -metering facility and decommissioning of~~ 26
870		-	~~the net-metering facility~~. 27
871		-	28
872		-	~~4-88-1104. Enforcement.~~ 29
873		-	~~Any violation of this subchapter may be enforced under the powers of~~ 30
874		-	~~the office of the Attorney General under the A rkansas Deceptive Trade~~ 31
875		-	~~Practices Act, § 4-88-101 et seq., including without limitation all~~ 32
876		-	~~enforcement powers~~. 33
877		-	34
878		-	~~SECTION 3. DO NOT CODIFY. TEMPORARY LANGUAGE. Rules.~~ 35
879		-	(a) The ~~Arkansas Public Service Commission,~~ ~~after notice~~ and ~~hearing,~~ 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 ~~H2/28/23~~ HB1370
	844	+	(B) Perform an energy efficiency audit on the poten tial or 1
	845	+	existing net-metering customer's premises and any customer meter locations to 2
	846	+	be served by the proposed net -metering facility as part of the proposal to 3
	847	+	sell or lease a net-metering facility or provide a net -metering service to a 4
	848	+	net-metering customer under the Arkansas Cost -Shifting Prevention Act of 5
	849	+	2023, § 23-18-601 et. seq, or inform the prospective or existing net -metering 6
	850	+	customer of how to obtain an energy efficiency audit; and 7
	851	+	(C) Inform the prospective or existing net -metering 8
	852	+	customer of the available energy efficiency measures to address the results 9
	853	+	of the audit as part of the proposal to sell or lease a net -metering facility 10
	854	+	or provide a net-metering service to a net -metering customer under the 11
	855	+	Arkansas Cost-Shifting Prevention Act of 2023, § 23-18-601 et. seq; 12
	856	+	(2) Demonstration to the prospective or existing net -metering 13
	857	+	customer that the proposed net -metering facility meets all applicable safety 14
	858	+	requirements and standards; and 15
	859	+	(3) Demonstration to the prospective or existing n et-metering 16
	860	+	customer that the person who sells or leases a net -metering facility or who 17
	861	+	provides a net metering service to a net metering customer holds: 18
	862	+	(A) All required permits to install, construct, or operate 19
	863	+	a net-metering facility in the state, a nd, if the governing county, city, or 20
	864	+	local authority does not require an electrical inspection, an executed 21
	865	+	certification that no electrical inspection or permit is required; and 22
	866	+	(B) A bond or other acceptable financial security to 23
	867	+	ensure proper maintenance of the net -metering facility and decommissioning of 24
	868	+	the net-metering facility. 25
	869	+	26
	870	+	4-88-1104. Enforcement. 27
	871	+	Any violation of this subchapter may be enforced under the powers of 28
	872	+	the office of the Attorney General under the Arkansas Deceptive Trad e 29
	873	+	Practices Act, § 4-88-101 et seq., including without limitation all 30
	874	+	enforcement powers. 31
	875	+	32
	876	+	SECTION 3. DO NOT CODIFY. TEMPORARY LANGUAGE. Rules. 33
	877	+	(a) The Arkansas Public Service Commission, after notice and hearing, 34
	878	+	shall: 35
	879	+	(1) Modify the commission rules to conform to this act; and 36 As Engrossed: H2/20/23 H2/21/23 H2/27/23 HB1370
880	880
881		-	23 02-28-2023 14:34:33 CRH048
	881	+	23 02-27-2023 10:55:55 CRH048
882	882
883	883
884		-	~~shall:~~ 1
885		-	~~(1) Modify the commission rules to conform to this act; and~~ 2
886		-	(2) ~~Submit~~ the commission ~~rules~~ to the ~~Legislative Council by~~ 3
887		-	~~December 31,~~ ~~2023.~~ 4
888		-	~~(b) The commission shall approve modifications to the electric~~ 5
889		-	~~utilities' rate schedules applicable to net -metering to conform to this act~~ 6
890		-	by ~~December 31, 2023.~~ 7
891		-	8
892		-	~~SECTION 4.~~ ~~EMERGENCY CLAUSE. It is found~~ and ~~determined by the~~ 9
893		-	~~General Assembly of~~ the ~~State~~ of Arkansas ~~that delay in the enactment of this~~ 10
894		-	~~act may result in unjust~~, ~~unreasonable~~, and ~~unduly discrim inatory rates; and~~ 11
895		-	~~that this act is~~ immediately necessary for the ~~protection~~ of ~~Arkansas~~ 12
896		-	~~ratepayers. Therefore,~~ ~~an emergency is declared to exist, and this act being~~ 13
897		-	~~immediately necessary for~~ the ~~preservation~~ of the ~~public peace, health, and~~ 14
898		-	~~safety shall become effective on:~~ 15
899		-	~~(1)~~ The ~~date~~ of ~~its approval by~~ the Governor; 16
900		-	~~(2) If the bill is neither approved nor vetoed by the Governor,~~ 17
901		-	~~the expiration of~~ the ~~period of time during which~~ the ~~Governor may~~ veto ~~the~~ 18
902		-	~~bill; or~~ 19
903		-	~~(3) If the bill is vetoed by t he Governor and the veto is~~ 20
904		-	~~overridden, the date the last house overrides the veto.~~ 21
905		-	22
	884	+	(2) Submit the commission rules to the Legislative Council by 1
	885	+	December 31, 2023. 2
	886	+	(b) The commission shall approve modifications to the electric 3
	887	+	utilities' rate schedules applicable to net -metering to conform to this act 4
	888	+	by December 31, 2023. 5
	889	+	6
	890	+	SECTION 4. EMERGENCY CLAUSE. It is found and determined by the 7
	891	+	General Assembly of the State of Arkansas that delay in the enactment of this 8
	892	+	act may result in unjust, unreasonable, and unduly discrim inatory rates; and 9
	893	+	that this act is immediately necessary for the protection of Arkansas 10
	894	+	ratepayers. Therefore, an emergency is declared to exist, and this act being 11
	895	+	immediately necessary for the preservation of the public peace, health, and 12
	896	+	safety shall become effective on: 13
	897	+	(1) The date of its approval by the Governor; 14
	898	+	(2) If the bill is neither approved nor vetoed by the Governor, 15
	899	+	the expiration of the period of time during which the Governor may veto the 16
	900	+	bill; or 17
	901	+	(3) If the bill is vetoed by t he Governor and the veto is 18
	902	+	overridden, the date the last house overrides the veto. 19
	903	+	20
	904	+	21
	905	+	/s/L. Fite 22
906	906		23
907		-	~~/s/L. Fite~~ 24
	907	+	24
908	908		25
909	909		26
910	910		27
911	911		28
912	912		29
913	913		30
914	914		31
915	915		32
916	916		33
917	917		34
918	918		35
919	919		36