Stricken language would be deleted from and underlined language would be added to present law.
Act 701 of the Regular Session
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State of Arkansas As Engrossed: S4/3/23 1
94th General Assembly A Bill 2
Regular Session, 2023 SENATE BILL 454 3
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By: Senators M. McKee, Gilmore, Stone 5
By: Representative Beaty Jr. 6
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For An Act To Be Entitled 8
AN ACT CONCERNING PU BLIC UTILITY CONTRAC TS FOR 9
INTERRUPTIBLE SERVIC E; AND FOR OTHER PUR POSES. 10
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Subtitle 13
CONCERNING PUBLIC UTILITY CONTRACTS FOR 14
INTERRUPTIBLE SERVICE. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 18
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SECTION 1. Arkansas Code § 23 -3-117 is amended to read as follows: 20
23-3-117. Contracts for interruptible service with industrial users . 21
(a)(1) Public utilities are authorized to A public utility may 22
contract for the sale, on an interruptible basis, of utility services at 23
agreed prices for a definite term not to exceed twenty -five (25) years with 24
customers whose use of the service is for manufacturing, generation, 25
processing, preparation of products, or industrial purposes. 26
(2) However, the contracts A contract under subdivision (a)(1) 27
of this section: 28
(A) Before becoming effective, shall: 29
(i) be subject Be subject to approval by the 30
Arkansas Public Service Commission before becoming effectiv e; and 31
(ii) Demonstrate that the contract is in the public 32
interest; 33
(B) These contracts, after After approval by the 34
commission Arkansas Public Service Commission , shall continue in full force 35
and effect for the term thereof of the contract; and 36 As Engrossed: S4/3/23 SB454
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(C)(i) Specify the amount of interruptible load to be 1
achieved by the customer. 2
(ii) The amount under subdivision (a)(2)(C)(i) of 3
this section shall be permitted to be altered only one (1) time per year . 4
(b)(1) An electric utility shall have a schedule that offers 5
interruptible service when the electric utility's class of customers with the 6
highest level of consumption per customer that has rates that include a 7
demand component, and any successors to such a class, as the class existed on 8
January 1, 2023, has an annual usage for the class as a whole in excess of 9
five million megawatt hours (5,000,000 MWh). 10
(2) The rate schedule shall be consistent with and permitted by 11
applicable regional transmission organization tariffs and any applicable 12
order, rule, or regulation issued by the Federal Energy Regulatory Commission 13
and the Arkansas Public Service Commission, in order to the greatest extent 14
possible to qualify as a resource in the regional transmission organization's 15
wholesale market. 16
(3) If permitted by the applicable regional transmission 17
organization tariffs, the Federal Energy Regulatory Commission, and the 18
Arkansas Public Service Commission, then the rate schedule's pricing shall 19
be: 20
(A) Based on the embedded costs of the electric ut ility; 21
and 22
(B) Consistent with the cost -of-service study and 23
underlying allocation methods used to set the other rates of the electric 24
utility. 25
(4) The rate schedule shall include the demand rate discount 26
developed consistent with the method used i n Order No. 35 issued by the 27
Arkansas Public Service Commission in Docket No. 96 -360-U, on October 16, 28
1998. 29
(c)(1) Except as otherwise provided or required by the applicable 30
regional transmission organization or an applicable Federal Energy Regulatory 31
Commission order, rule, or regulation, an electric utility shall not prohibit 32
a customer from taking interruptible service based solely upon a fuel source 33
the customer uses to meet the customer's contracted interruptible 34
requirements. 35
(2) An electric uti lity customer's accounts that are taking 36 As Engrossed: S4/3/23 SB454
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interruptible service under an electric utility's rate schedule for 1
interruptible service shall not be eligible for net -metering or be allowed to 2
participate in net-metering under the Arkansas Cost -Shifting Prevention Act 3
of 2023, § 23-18-601 et seq., unless the Arkansas Public Service Commission 4
has: 5
(A) On or before December 31, 2022, issued an order 6
addressing an individual net -metering customer's application for approval of 7
a net-metering facility with a name plate generating capacity in excess of 8
ten thousand kilowatts (10,000 kW) if an individual net -metering customer 9
takes service under an electric utility's rate schedule for interruptible 10
service; and 11
(B) Determined that it is in the public interest for that 12
individual interruptible customer to be a net -metering customer. 13
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/s/Gilmore 15
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APPROVED: 4/11/23 18
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