The Arkansas Public Service Commission regulates twenty-four electric utilities in the State, including four investor-owned utilities, one generation and transmission cooperative utility, seventeen distribution cooperative utilities, and two Regional Transmission Organizations (RTO).
The Commission does not regulate municipally owned utilities, public power agencies, or exempt wholesale generators (Independent Power Producers).
On February 21, 2003, the Arkansas General Assembly passed Act 204 of 2003, The Electric Utility Regulatory Reform Act, repealing Chapter 19 of Title 23 (Act 1556 of 1999 and Act 324 of 2001). Act 204 found that it was in the public interest to continue regulating electric utility rates for the foreseeable future. All rules and regulations adopted by the Commission to facilitate or in anticipation of retail electric competition were rendered unnecessary by or were superceded by this Act.
In October, 2004, the Federal Energy Regulatory Commission approved the Southwest Power Pool's (SPP) request to operate as a RTO. Southwestern Electric Power Company, Oklahoma Gas and Electric Company and The Empire District Electric Company are members of the SPP RTO. Entergy Arkansas, Inc., which serves a significant portion of Arkansas, became a member of Midcontinent Independent System Operator, Inc. (MISO) RTO in December, 2014. Arkansas Electric Cooperative Corporation is a member of the SPP RTO and the MISO RTO.
Exempt wholesale generators are not subject to the jurisdiction of the Commission in accordance with Act 1322 of 1999. Generally, new transmission facilities constructed to connect the generating facility to the transmission grid require the issuance of a Certificate of Public Convenience and Necessity (CCN) or a Certificate of Environmental Compatibility and Public Need (CECPN) by the Commission. The filing requirements for CCNs and CECPNs are found in Section 6 of the Commission’s Rules of Practice and Procedure
Rates, riders, rules, and terms and conditions for service are found in the utility tariffs approved by the Commission for each jurisdictional electric utility.
Distribution Cooperatives report cost of debt and cost of energy adjustment factors to the Commission in accordance with the Distribution Cooperative Cost of Debt and Cost of Energy Uniform Reporting Procedures.
Director, Electric Section
Arkansas Public Service Commission