23 CAR pt. 457 | 23 CAR Part 457 — Net-metering Rules

Chapter XVI

Subchapter A

Subpart 1

23 CAR § 457-101 Purpose {#sec-23-car-457-101 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-101}

23 CAR § 457-101. Purpose.

The purpose of this part is to establish rules for net energy metering and interconnection.

History

Codification Notes: This section was promulgated as Rule 1.02 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-102 Statutory provisions {#sec-23-car-457-102 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-102}

23 CAR § 457-102. Statutory provisions.

(a) This part is developed pursuant to the Arkansas Cost-Shifting Prevention Act of 2023, Arkansas Code § 23-18-601 et seq., as amended.

(b) This part is promulgated pursuant to the Arkansas Public Service Commission’s authority under Arkansas Code §§ 23-2-301, 23-2-304(a)(3), 23-2-305, and 23-18-604(b)(1).

(c) Nothing in this part shall govern, limit, or restrict the Arkansas Public Service Commission’s authority under Arkansas Code § 23-18-604.

History

Codification Notes: This section was promulgated as Rule 1.03 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-103 Definitions {#sec-23-car-457-103 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-103}

23 CAR § 457-103. Definitions.

The following definitions shall apply throughout this part, and any references to this part shall include these definitions except as required by context or by Arkansas Code § 23-18-604(c)(11)(A) as interpreted by the Arkansas Public Service Commission in Docket No. 23-021-R:

(1)(A) “Additional meter” means a meter associated with the net-metering customer’s account to which the net-metering customer may request an electric utility apply credit with net excess generation or net-metering surplus from the net-metering customer’s generation meter.

(B) Additional meter or meters:

(i) Shall be under common ownership within a single electric utility’s service area;

(ii) Shall be used to measure the net-metering customer’s requirements for electricity;

(iii) May be in a different class of service than the generation meter;

(iv) Shall be assigned to one (1), and only one (1), generation meter;

(v) Shall not be a generation meter; and

(vi) Shall not be associated with unmetered service;

(2) “Annual billing cycle” means the normal annual fiscal accounting period used by the electric utility;

(3) “Avoided cost” means as defined in Arkansas Code § 23-18-603(1);

(4) “Billing period”. The billing period for net-metering will be the same as the billing period under the net-metering customer’s applicable standard rate schedule;

(5)(A) “Biomass resource” means a resource that may use one (1) or more organic fuel sources that can either be processed into synthetic fuels or burned directly to produce steam or electricity, provided that the:

(i) Resources are renewable and environmentally sustainable in their production and use; and

(ii) Process of conversion to electricity results in a net environmental benefit.

(B) This includes, but is not limited to:

(i) Dedicated energy crops and trees;

(ii) Agricultural food and feed crops;

(iii) Agricultural crop wastes and residues;

(iv) Wood wastes and residues;

(v) Aquatic plants;

(vi) Animal wastes; and

(vii) Other accepted organic, renewable waste materials;

(6) “Commission” means the Arkansas Public Service Commission;

(7) “Distribution cooperative” means a member-owned electric utility organized pursuant to the Electric Cooperative Corporation Act, Arkansas Code § 23-18-301 et seq., that purchases the wholesale electricity it distributes to its members from Arkansas Electric Cooperative Corporation;

(8)(A) “Electric utility” means as defined in Arkansas Code § 23-18-603(3).

(B) Pursuant to Arkansas Code § 23-18-604(e), a person who acts as a lessor or service provider as described in Arkansas Code § 23-18-603(8)(A)(ii) or § 23-18-603(8)(A)(iii) shall not be considered an electric utility;

(9) “Energy storage device” means a device that:

(A) Captures energy produced at one (1) time;

(B) Stores that energy for a period of time; and

(10) “Facilities Agreement” means an agreement that provides the net-metering customer a good-faith estimate, based on the results of a facilities study, for the net-metering customer’s appropriate portion of the make-ready costs and associated expenses required to enable the net-metering customer’s use of the electric utility’s facilities and to cover the direct costs of interconnection and any grid upgrades required to connect the net-metering facility pursuant to Arkansas Code § 23-18-604(c)(9)(B)(i) and (ii), including applicable costs of constructing the electric utility facilities necessary to interconnect a net-metering facility as referred to in Arkansas Code § 23-18-604(c)(11)(A)(ii);

(11)(A) “Facilities study” means a comprehensive engineering study conducted by an electric utility detailing the electric system infrastructure and the impacts to the transmission and/or distribution systems that would result if a proposed interconnection request were connected without project modifications or electric system modifications.

(B) The purpose of a facilities study is to determine the required modifications to the electric utility’s transmission and/or distribution system to mitigate any potential adverse system impacts, including the appropriate portion of the estimated make-ready costs and the approximate time required to build and install such modifications as necessary to accommodate an interconnection request;

(12) “Fuel cell resource” means a resource that converts the chemical energy of a fuel directly to direct current electricity without intermediate combustion or thermal cycles;

(13) “Generation meter” means the meter associated with the net-metering customer’s account to which the net-metering facility is physically attached;

(14)(A) “Geothermal resource” means a resource in which the prime mover is a steam turbine.

(B) The steam is generated in the earth by heat from the earth's magma;

(15)(A) “Hydroelectric resource” means a resource in which the prime mover is a water wheel.

(B) The water wheel is driven by falling water;

(16)(A) “Locational Marginal Price” means a market-based pricing mechanism used in electricity markets to determine the cost of electricity at a specific location on the power grid.

(B) It reflects the cost of supplying electricity at a particular point, taking into account the cost of generation, transmission losses, and congestion on the power grid;

(17) “Micro turbine resource” means a resource that uses a small combustion turbine to produce electricity;

(18) “Monthly grid charge” means as defined in Arkansas Code § 23-18-603(4);

(19) “Net excess generation” means as defined in Arkansas Code § 23-18-603(6);

(20) “Net-metering” means as defined in Arkansas Code § 23-18-603(7);

(21)(A) “Net-metering customer” means as defined in Arkansas Code § 23-18-603(8).

(B) “Legacy net-metering customer” means a customer who submitted a Standard Interconnection Agreement for Net-metering Facilities for a particular net-metering facility prior to March 13, 2023.

(C) “Legacy-transitional net-metering customer” means a customer who submitted a Standard Interconnection Agreement for Net-metering Facilities for a particular net-metering facility on or after March 13, 2023, but whose net-metering facility qualifies to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, pursuant to Arkansas Code § 23-18-604(c)(11)(A).

(D)“Non-legacy net-metering customer” means a net-metering customer whose net-metering facility does not qualify to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, pursuant to Arkansas Code § 23-18-604(c)(11)(A);

(22) “Net-metering facility” means as defined in Arkansas Code § 23-18-603(9);

(23) “Net-metering surplus” means as defined in Arkansas Code § 23-18-603(10);

(24) “Parallel operation”.

(A) “Parallel operation with an electric utility’s distribution facilities” means the operation of a net-metering facility in compliance with applicable safety standards and power generation limits under this part while the net-metering facility is connected to the electric utility’s distribution system.

(B) “Parallel operation with an electric utility’s transmission facilities” means the operation of a net-metering facility in compliance with applicable safety standards and power generation limits under this part if an electric utility owns transmission facilities that will be impacted by a net-metering facility;

(25) “Renewable energy credit” means as defined in Arkansas Code § 23-18-603(11);

(26) “Residential use” means service provided under an electric utility’s standard rate schedules applicable to residential service;

(27) “Solar resource” means a resource in which electricity is generated through the collection, transfer, and/or storage of the sun's heat or light; and

(28) “Wind resource” means a resource in which an electric generator is powered by a wind-driven turbine.

History

Codification Notes: This section was promulgated as Rule 1.01 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-104 Other provisions {#sec-23-car-457-104 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-104}

23 CAR § 457-104. Other provisions.

(a) This part applies to all electric utilities, as defined in this part, that are jurisdictional to the Arkansas Public Service Commission.

(b) This part is not intended to and does not affect or replace any Arkansas Public Service Commission-approved general service policy, procedure, rule, or service application of any utility that addresses items other than those covered in this part.

(c) Net-metering customers taking service under the provisions of the net-metering tariff may not simultaneously take service under the provisions of any other alternative source generation, cogeneration, or interruptible service tariffs except as provided in:

(1) Arkansas Code § 23-18-603(8)(B)(i) and (ii); and

(2) Arkansas Code § 23-18-604(c)(11)(A).

(d)(1) When calculating a net-metering customer’s highest monthly usage pursuant to Arkansas Code § 23-18-603(9), an electric utility shall base its calculation upon the net-metering customer’s energy usage in kilowatt hours (kWh) and shall establish the corresponding net-metering facility size limitation as the facility’s estimated average output that would meet the customer’s usage in that same month of the year.

(2) The lesser of the limit based upon highest monthly usage or the statutory nameplate generating capacity will then apply.

(e) Electric utilities shall not require legacy net-metering customers who submitted a Standard Interconnection Agreement for Net-metering Facilities for a particular net-metering facility prior to March 13, 2023, to reduce the generating capacity of the individual net-metering facility to meet the new generating capacity limits in Arkansas Code § 23-18-603(9) that became effective on March 13, 2023.

(f) Electric utilities shall not require legacy net-metering customers who submitted a Standard Interconnection Agreement for Net-metering Facilities for a particular net-metering facility prior to March 13, 2023, to relocate any of their net-metering facilities to meet the new limitations in Arkansas Code § 23-18-603(9) on co-locating that became effective on March 13, 2023.

History

Codification Notes: This section was promulgated as Rule 1.04 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

Subpart 2

23 CAR § 457-201 Electric utility requirements {#sec-23-car-457-201 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-201}

23 CAR § 457-201. Electric utility requirements.

(a)(1) An electric utility shall allow net-metering facilities of legacy net-metering customers and legacy-transitional net-metering customers to be interconnected using a standard meter capable of registering the flow of electricity in two (2) directions.

(2) An electric utility shall not require legacy net-metering customers or legacy-transitional net-metering customers to purchase or install a two-channel digital meter as a condition of continued net-metering service until June 1, 2040.

(b) An electric utility shall allow net-metering facilities of non-legacy net-metering customers to be interconnected using, at a minimum, a single standard two-channel digital meter capable of registering the flow of electricity in two (2) directions that separately measures the electric energy in kilowatt hours (kWh) that is:

(1) Supplied by an electric utility to the net-metering customer; and

(2) Generated by the net-metering customer’s net-metering facility and fed back to an electric utility.

History

Codification Notes: This section was promulgated as Rule 2.01 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-202 Metering requirements {#sec-23-car-457-202 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-202}

23 CAR § 457-202. Metering requirements.

(a)(1) Metering equipment shall be installed to both accurately measure the electricity supplied by the electric utility to each net-metering customer and also to accurately measure the electricity generated by each net-metering customer that is fed back to the electric utility over the applicable billing period.

(2) If nonstandard metering equipment is required, the customer is responsible for the cost differential between the required metering equipment and the utility’s standard two-channel digital metering equipment for the customer’s current rate schedule, as applicable pursuant to 23 CAR § 457-201.

(b)(1) Accuracy requirements for a meter operating in both forward and reverse registration modes shall be as defined in the Arkansas Public Service Commission’s Special Rules — Electric, 23 CAR pt. 463.

(2) A test to determine compliance with this accuracy requirement shall be made by the electric utility either before or at the time the net-metering facility is placed in operation in accordance with this part.

History

Codification Notes: This section was promulgated as Rule 2.02 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-203 Cost recovery and new or additional charges {#sec-23-car-457-203 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-203}

23 CAR § 457-203. Cost recovery and new or additional charges.

(a) Any new or additional charge that would increase a net-metering customer’s costs beyond those of other customers in the rate class shall be filed by the electric utility with the Arkansas Public Service Commission for approval in its net-metering tariffs, including but not limited to the following:

(1) A charge to recover any cost of the standard two-channel digital meter that is not otherwise included in the rates paid by the net-metering customer; and

(2) A standard one-time fee to recover administrative and related interconnection review costs.

(b) An electric utility may recover any net-metering surplus or the dollar value of any net excess generation applied to the bills of net-metering customers in the same manner that the electric utility recovers the cost of fuel and purchased energy.

(c) Each electric utility shall follow its net-metering tariff or other applicable rate schedules as approved by the Arkansas Public Service Commission to ensure that each net-metering customer pays either the entire costs of an electric utility’s facilities and associated expenses or the appropriate portion of the costs and associated expenses required to:

(1) Provide service to the net-metering customer; and

(2) Enable the net-metering customer’s use of the electric utility facilities.

History

Codification Notes: This section was promulgated as Rule 2.03 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-204 Billing for net-metering {#sec-23-car-457-204 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-204}

23 CAR § 457-204. Billing for net-metering.

(a) Each electric utility shall elect in its standard net-metering tariff one (1) of the rate structures outlined under Arkansas Code § 23-18-606.

(b) Each electric utility shall bill net-metering customers under either of two (2) different net-metering tariffs as outlined in the Appendix B standard net-metering tariffs:

(1) For a net-metering facility of a net-metering customer that qualifies to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, pursuant to Arkansas Code § 23-18-604(c)(11)(A), electric utilities shall:

(A) Credit a net-metering customer with the amount of any accumulated net excess generation in the next applicable billing period; and

(B) Base the bill of the net-metering customer on the net amount of electricity as measured in kilowatt hours that the net-metering customer has received from or fed back to the electric utility during the billing period; or

(2) For a net-metering facility of a net-metering customer that does not qualify to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, pursuant to Arkansas Code § 23-18-604(c)(11)(A), electric utilities shall bill a net-metering customer under the alternative rate structure elected by the electric utility pursuant to Arkansas Code § 23-18-606.

(c) If the net-metering customer has any accumulated net-metering surplus or net excess generation during the applicable billing period:

(1) The net-metering surplus or net excess generation shall first be credited to the net-metering customer’s generation meter;

(2) After application of subdivision (c)(1) of this section and upon request of the net-metering customer pursuant to subsection (d) of this section, any remaining net-metering surplus or net excess generation shall be credited to one (1) or more of the net-metering customer’s additional meters in the rank order provided by the net-metering customer; and

(3)(A) The net-metering surplus or net excess generation shall be credited as described in subdivisions (c)(1) and (2) of this section during subsequent billing periods.

(B) The amount of net excess generation credits remaining in a net-metering customer’s account at the close of a billing period:

(i) Shall not expire; and

(ii) Shall be carried forward to subsequent billing periods indefinitely.

(C) For net excess generation credits older than twenty-four (24) months, a legacy or legacy-transitional net-metering customer may elect to have the electric utility purchase the net excess generation credits in the legacy or legacy-transitional net-metering customer’s account at the electric utility’s avoided cost if the sum to be paid to the legacy or legacy-transitional net-metering customer is at least one hundred dollars ($100).

(D) An electric utility shall purchase at the electric utility’s avoided cost any net excess generation or net-metering surplus credits remaining in a net-metering customer’s account when the net-metering customer:

(i) Ceases to be a customer of the electric utility;

(ii) Ceases to operate the net-metering facility; or

(iii) Transfers the net-metering facility to another person.

(d) Upon request from a net-metering customer, an electric utility must apply net-metering surplus or net excess generation to the net-metering customer’s additional meters provided that:

(1) The net-metering customer gives at least thirty (30) days’ notice to the electric utility of its request to apply net-metering surplus or net excess generation to the additional meter or meters;

(2) The additional meter or meters must be identified at the time of the request;

(3)(A) In the event that more than one (1) of the net-metering customer’s additional meters is identified, the net-metering customer must designate the rank order for the additional meters to which net-metering surplus or net excess generation is to be applied.

(B) The net-metering customer cannot designate the rank order more than once during the annual billing cycle;

(4) At the time an electric utility processes a request for applying any remaining net-metering surplus or net excess generation as a credit to one (1) or more of a net-metering customer’s meters in the rank order provided by the net-metering customer pursuant to Arkansas Code § 23-18-604(d), the electric utility shall synchronize the billing cycles of each additional meter with the net-metering customer’s generation meter; and

(5) Billing and crediting for the net-metering facilities and additional meters of non-legacy net-metering customers shall comply with the requirements of Arkansas Code § 23-18-604(d)(2)(A).

(e) Any renewable energy credit may be retained, retired, or sold for the sole benefit of the net-metering customer.

History

Codification Notes: This section was promulgated as Rule 2.04 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-205 Meter aggregation {#sec-23-car-457-205 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-205}

23 CAR § 457-205. Meter aggregation.

(a) Except as provided in subsections (b) and (c) of this section, an electric utility shall separately meter, bill, and credit each net-metering facility even if one (1) or more net-metering facilities are under common ownership.

(b) Pursuant to Arkansas Code § 23-18-604(d), at the net-metering customer’s discretion, an electric utility shall apply net-metering credits for net-metering customers who are billed under Arkansas Code § 23-18-606(a)(2)(A) – (G) or the net-metering surplus for all other customers from a net-metering customer’s net-metering facility to the bill for another meter location of the net-metering customer if the net-metering facility and the separate meter location are under common ownership of the same net-metering customer within a single electric utility’s allocated service territory, subject to the limitations and exceptions provided in Arkansas Code § 23-18-604(d) except as required by Arkansas Code § 23-18-604(c)(11)(A), that does not impose those limitations on the net-metering facilities of customers who meet its requirements, i.e., legacy and legacy-transitional net-metering customers.

(c)(1) A net-metering customer seeking to aggregate multiple accounts under common ownership shall submit a request to the electric utility identifying the accounts that are under common ownership.

(2) The request shall include the following documents:

(A) Standard application form and affidavit as approved by the Arkansas Public Service Commission; and

(B)(i) Sworn affidavit.

(ii) The net-metering customer shall submit a sworn affidavit by a person with personal knowledge affirming that the net-metering customer is in fact the legal owner or authorized representative responsible for paying the bill for all accounts listed in the application form.

History

Codification Notes: This section was promulgated as Rule 2.05 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-206 Legacy status for net-metering facilities {#sec-23-car-457-206 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-206}

23 CAR § 457-206. Legacy status for net-metering facilities.

(a) A net-metering facility of a net-metering customer shall remain under the rate structure terms and conditions in effect before December 31, 2022, until June 1, 2040, if the net-metering customer has qualified under Arkansas Code § 23-18-604(c)(11)(A) by having done one (1) of the following:

(1) Submitted a Standard Interconnection Agreement for Net-metering Facilities to the electric utility before September 30, 2024;

(2) Submitted a Facilities Agreement or equivalent document to establish an account with an electric utility and paid all estimated make-ready costs of constructing the electric utility facilities necessary to interconnect the net-metering facility before September 30, 2024; or

(3) Filed a complaint with the Arkansas Public Service Commission addressing a disputed Facilities Agreement or equivalent document to establish an account with an electric utility after the presentation by the electric utility to the net-metering customer of the Facilities Agreement and the required costs of constructing the facilities necessary to interconnect the net-metering facility before September 30, 2024.

(b)(1) For the purpose of a net-metering facility qualifying for legacy-transitional status under subdivision (a)(2) of this section, a net-metering customer will be deemed to have paid all costs of constructing electric utility facilities necessary to interconnect the net-metering facility before September 30, 2024, if prior to September 30, 2024, the net-metering customer has paid all estimated make-ready costs as designated in the Facilities Agreement presented to the net-metering customer by an electric utility.

(2) If the electric utility adjusts the make-ready cost estimate for the Facilities Agreement based on actual make-ready costs incurred and requests the net-metering customer to pay those additional costs subsequent to the initial presentation of the Facilities Agreement, such subsequent cost adjustment shall be paid by the net-metering customer but shall not defeat the net-metering customer’s qualification for legacy status under subsection (a) of this section.

(c)(1) A net-metering facility may be upgraded by adding a material increase in nameplate generating capacity and retain legacy-transitional status so long as the net-metering facility still meets the:

(A) Statutory definition under Arkansas Code § 23-18-603(9); and

(B) Requirements of Arkansas Code § 23-18-604(c)(11)(A).

(2) If a net-metering facility adds a material increase in generating capacity after March 13, 2023, that does not meet the requirements of Arkansas Code §§ 23-18-603(9) and 23-18-604(c)(11)(A), the new and additional capacity will not qualify for legacy-transitional status and thus shall be billed pursuant to one (1) of the rate structures established in Arkansas Code § 23-18-606.

(3) However, the addition of non-legacy generating capacity to a legacy-transitional net-metering facility will not result in the revocation of legacy net-metering status for any portion of the net-metering facility previously qualified for such status.

(d) For the date of eligibility for legacy status to be established under subsection (a) of this section and Arkansas Code § 23-18-604(c)(11)(A):

(1) The electric utility need not have approved and signed the Standard Interconnection Agreement for Net-metering Facilities or Facilities Agreement; and

(2) Section 5., Certification, of the Standard Interconnection Agreement for Net-metering Facilities need not be completed.

(e) The legacy status period shall attach to the net-metering facility on the premises rather than the net-metering customer.

(f) If the net-metering customer sells a premises with a net-metering facility, the:

(A) Standard Interconnection Agreement for Net-metering Facilities and Facilities Agreement may be transferred to the new net-metering customer; and

(B) Legacy status period shall continue until June 1, 2040.

(g) A net-metering customer may not transfer a net-metering facility to a new premises or location and continue to operate under the legacy status period.

(h) Maintenance and repair of existing net-metering facilities, including replacement of system parts with newer technology after September 30, 2024, shall not be a triggering event that ends the legacy status period, even if the modifications marginally increase system output due to increases in efficiency and new technology, so long as such maintenance and repair does not materially increase the generating capacity of the net-metering facility.

(i) A net-metering facility qualifying for legacy status under this section remains subject to any other change or modification in rates, terms, or conditions approved by the Arkansas Public Service Commission.

History

Codification Notes: This section was promulgated as Rule 2.06 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-207 Leases and safe harbor for service agreements {#sec-23-car-457-207 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-207}

23 CAR § 457-207. Leases and safe harbor for service agreements.

(a) A net-metering customer entering into a lease for a net-metering facility shall provide to the electric utility a standard notice and affidavit approved by the Arkansas Public Service Commission to the electric utility certifying that the lease is in compliance with:

(1) All Arkansas Public Service Commission rules; and

(2) Arkansas Code § 23-18-603(9)(A)(ii).

(b) A net-metering customer entering into a service agreement for a net-metering facility who is relying on Arkansas Code § 23-18-603(9)(A) to qualify for net-metering shall submit a standard notice and affidavit approved by the Arkansas Public Service Commission to the electric utility certifying that the:

(1) Customer qualifies for safe-harbor protection as provided by Arkansas Code § 23-18-603(9)(A)(iii)(a) and 26 U.S.C. § 7701(e)(3)(A); and

(2) Service agreement is in compliance with all Arkansas Public Service Commission rules.

(c)(1)(A) Disputes over compliance with subsection (a) or (b) of this section shall be submitted to staff for review and attempted resolution.

(B) Thereafter, a net-metering customer or electric utility that disagrees with staff’s resolution may petition the Arkansas Public Service Commission to resolve the dispute.

(2) Electric utilities shall presume that any person who submits a completed notice and affidavit form is in compliance with the Arkansas Public Service Commission’s rules and the provisions under Arkansas Code § 23-18-603(9) until the Arkansas Public Service Commission makes a finding otherwise.

History

Codification Notes: This section was promulgated as Rule 2.07 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-208 Annual avoided-cost redetermination {#sec-23-car-457-208 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-208}

23 CAR § 457-208. Annual avoided-cost redetermination.

(a) If an electric utility elects to use the rate structure outlined in Arkansas Code § 23-18-606(a)(1), the electric utility shall file any needed revisions to its net-metering tariff on or before February 1 of each calendar year, to become effective on March 1 of the same year, updating the avoided cost to reflect the twelve-month average for the prior calendar year of the applicable Locational Marginal Price associated with the electric utility’s load zone in the Midcontinent Independent System Operator (MISO) or Southwest Power Pool (SPP) Independent System Operator Market.

(b)(1) The electric utility shall use the historic hourly average real-time Locational Marginal Price for the prior calendar year for the purpose of calculating the annual avoided-cost rate updates in its net-metering tariff.

(2) Any electric utility whose load zone encompasses both MISO and SPP shall use a blended rate to calculate the avoided cost.

(3) A distribution cooperative shall use the avoided-cost rate based on the load zones applicable to the wholesale power it purchases as calculated by Arkansas Electric Cooperative Corporation.

History

Codification Notes: This section was promulgated as Rule 2.08 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

Subpart 3

23 CAR § 457-301 Requirements for initial interconnection of a net-metering facility {#sec-23-car-457-301 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-301}

23 CAR § 457-301. Requirements for initial interconnection of a net-metering facility.

(a) A net-metering customer and owner of the net-metering facility, if different, shall execute a Standard Interconnection Agreement for Net-metering Facilities, Appendix A, prior to interconnection with the electric utility’s facilities.

(b)(1) A net-metering facility shall be capable of operating in parallel and safely commencing the delivery of power into the utility system at a single point of interconnection.

(2) To prevent a net-metering facility from back-feeding a de-energized line, a net-metering facility shall have a visibly open, lockable, manual disconnect switch that is accessible by the electric utility and clearly labeled.

(c)(1) The net-metering customer and owner of the net-metering facility, if different, shall submit a Standard Interconnection Agreement for Net-metering Facilities to the electric utility at least thirty (30) days prior to the date the net-metering customer intends to interconnect the net-metering facilities to the electric utility’s facilities.

(2) Part I, Standard Information, Sections 1 through 5 of the Standard Interconnection Agreement for Net-metering Facilities must be completed by the net-metering customer and owner, if different from customer, for the notification to be valid.

(3) The net-metering customer shall have all equipment necessary to complete the interconnection prior to such notification.

(4) If mailed, the date of notification shall be the third day following the mailing of the Standard Interconnection Agreement for Net-metering Facilities.

(5) The electric utility shall provide a copy of the Standard Interconnection Agreement to the net-metering customer upon request.

(d)(1) Following notification by the net-metering customer or owner as specified in subsection (c) of this section, the electric utility shall review the plans for the facility and provide the results of its review to the net-metering customer, in writing, within thirty (30) calendar days.

(2) Any items that would prevent parallel operation due to violation of safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

(e) The net-metering facility, at the net-metering customer’s expense, shall meet safety and performance standards established by local and national electrical codes including:

(1) The National Electrical Code;

(2) The Institute of Electrical and Electronics Engineers;

(3) The National Electrical Safety Code; and

(4) Underwriters Laboratories.

(f) The net-metering facility, at the net-metering customer’s expense, shall meet all safety and performance standards adopted by the electric utility and filed with and approved by the Arkansas Public Service Commission pursuant to this part that are necessary to ensure safe and reliable operation of the net-metering facility to the electric utility’s system.

(g) If the electric utility’s existing facilities are not adequate to interconnect with the net-metering facility, the net-metering customer shall pay the cost of additional or reconfigured facilities prior to the installation or reconfiguration of the facilities.

(h) Pursuant to Arkansas Code § 23-18-603(9)(D), if an electric utility owns transmission facilities that will be impacted by a net-metering facility, a net-metering customer must obtain an electric utility’s permission to operate its facilities in parallel with the electric utility’s transmission facilities.

History

Codification Notes: This section was promulgated as Rule 3.01 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-302 Requirements for modifications or changes to a net-metering facility {#sec-23-car-457-302 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-302}

23 CAR § 457-302. Requirements for modifications or changes to a net-metering facility.

(a)(1) Prior to being made, the net-metering customer or owner of the net-metering facility shall notify the electric utility of, and the electric utility shall evaluate, any modifications or changes to the net-metering facility described in Part I, Standard Information, Section 2 of the Standard Interconnection Agreement for Net-metering Facilities.

(2) The notice provided by the net-metering customer or owner of the net-metering facility shall provide detailed information describing the modifications or changes to the electric utility in writing, including a revised Standard Interconnection Agreement for Net-metering Facilities that clearly identifies the changes to be made.

(3) The utility shall review the proposed changes to the facility and provide the results of its evaluation to the customer, in writing, within thirty (30) days of receipt of the customer’s proposal.

(4) Any items that would prevent parallel operation due to violation of applicable safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

(b) If the net-metering customer or owner of the net-metering facility makes such modification without the electric utility’s prior written authorization and the execution of a new Standard Interconnection Agreement for Net-metering Facilities, the electric utility shall have the right to suspend net-metering service pursuant to the procedures in Subpart 6 of the Arkansas Public Service Commission’s General Service Rules, 23 CAR pt. 455.

(c) A net-metering facility shall not be modified or changed to generate electrical energy in excess of the amount necessary to offset all of the net-metering customer requirements for electricity.

(d) If a net-metering customer proposes a modification or upgrade to a net-metering facility that has previously qualified for legacy or legacy-transitional status, an electric utility may only require the net-metering customer to submit a new Standard Interconnection Agreement for Net-metering Facilities for the modification or upgrade if the customer is proposing a material increase in nameplate generating capacity.

History

Codification Notes: This section was promulgated as Rule 3.02 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-303 Requirements for Preliminary Interconnection Site Review Request {#sec-23-car-457-303 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-303}

23 CAR § 457-303. Requirements for Preliminary Interconnection Site Review Request.

(a)(1) For the purpose of requesting that the electric utility conduct a preliminary interconnection site review for a proposed net-metering facility to determine the net-metering facility’s impact to the electric utility’s grid through technical review and if additional site screening may be required to determine the applicable interconnection costs prior to interconnection of the net-metering facility, the net-metering customer may notify the electric utility by submitting a completed Preliminary Interconnection Site Review Request.

(2) The net-metering customer shall submit a separate Preliminary Interconnection Site Review Request for each point of interconnection if information about multiple points of interconnection is requested.

(3) Each Preliminary Interconnection Site Review Request will be considered separately and in the order in which received.

(4) Part I, Standard Information, Sections 1 through 4 of the Preliminary Interconnection Site Review Request must be completed for the notification to be valid.

(5) If mailed, the date of notification shall be the third day following the mailing of the Preliminary Interconnection Site Review Request.

(6) The electric utility shall provide a copy of the Preliminary Interconnection Site Review Request to the net-metering customer upon request.

(b)(1) Following notification by the net-metering customer as specified in subsection (a) of this section, the electric utility shall review the plans of the facility interconnection and provide the results of its review to the net-metering customer in writing within thirty (30) calendar days.

(2) If the net-metering customer requests that multiple interconnection site reviews be conducted, the electric utility shall make reasonable efforts to provide the net-metering customer with the results of the review within thirty (30) calendar days.

(3) If the electric utility cannot meet the deadline, it shall provide the net-metering customer with an estimated date by which it will complete the review.

(4) The net-metering customer may request parallel processing of multiple reviews but must pay actual costs of conducting the review and any subsequent costs associated with site screening that may be required under subsection (c) of this section.

(5) In such event, the electric utility shall respond to the request and shall process and present the results of the multiple reviews within a reasonable time, not to exceed ninety (90) days.

(6) Any items that would prevent parallel operation due to violation of safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

(c)(1) The preliminary interconnection site review is nonbinding and need only include existing data and does not require the electric utility to conduct a study or other analysis of the proposed interconnection site in the event that data is not readily available.

(2) The electric utility shall notify the net-metering customer if additional site screening may be required prior to interconnection of the facility.

(3) The net-metering customer shall be responsible for:

(A) The actual costs of conducting the preliminary interconnection site review; and

(B) Any subsequent costs associated with site screening that may be required.

(d)(1) The preliminary interconnection site review does not relieve the net-metering customer of the requirement to execute a Standard Interconnection Agreement for Net-metering Facilities prior to interconnection of the facility.

(2) The preliminary interconnection site review process is optional for a net-metering customer and may be used to determine the net-metering facility’s impact to the electric utility’s grid through technical review and if additional site screening may be required to determine the appropriate portion of the costs and associated expenses required to provide service to the net-metering customer and enable the net-metering customer’s use of the electric utility’s facilities prior to installing a net-metering facility.

(3) A net-metering customer may choose to proceed with installing a net-metering facility and submitting a Standard Interconnection Agreement for Net-metering Facilities without going through the preliminary interconnection site review process.

(4) Regardless of whether a net-metering customer submits a Preliminary Interconnection Site Review Request, the net-metering customer is responsible for their appropriate portion of any required interconnection costs.

(e) An electric utility may charge a net-metering customer an Arkansas Public Service Commission-approved standard one-time fee for each Preliminary Interconnection Site Review Request submitted or at the time of interconnection after executing a Standard Interconnection Agreement for Net-metering Facilities to recover administrative and related interconnection review costs pursuant to Arkansas Code § 23-18-604(9)(A), as filed in its net-metering tariff.

History

Codification Notes: This section was promulgated as Rule 3.03 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-304 Requirements for facilities study and Facilities Agreement {#sec-23-car-457-304 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-304}

23 CAR § 457-304. Requirements for facilities study and Facilities Agreement.

(a)(1) A net-metering customer may request that the electric utility conduct a facilities study for the purpose of determining any applicable costs of constructing electric utility facilities necessary to mitigate any potential adverse system impacts and interconnect a net-metering facility pursuant to Arkansas Code § 23-18-604(c)(11)(A)(ii).

(2) The facilities study request should be made in writing but does not have to be made on any particular form unless the electric utility has an approved request form approved as part of its net-metering tariff.

(b)(1) The facilities study shall specify and estimate the cost of the equipment, engineering, procurement, construction work including protection, and any additional requirements needed to implement system upgrades and interconnection facilities necessary to safely interconnect a net-metering facility to the electric utility’s system pursuant to Arkansas Code § 23-18-604(c)(9)(B)(i) and (ii).

(2) The Facilities Agreement shall reflect that estimate as part of its terms when presented to the net-metering customer.

(c)(1) An electric utility may charge a net-metering customer a deposit for each facilities study to recover estimated interconnection study costs pursuant to Arkansas Code § 23-18-604(c)(9)(B), as filed in its standard net-metering tariff.

(2) Any portion of the deposit not actually incurred by the electric utility as a result of the study shall be:

(A) Promptly returned to the net-metering customer; or

(B) Credited towards the facility costs established by the Facilities Agreement for the net-metering facility.

(d) Each electric utility shall file with its net-metering tariff for Arkansas Public Service Commission approval its standard Facilities Agreement.

(e) Following the completion of a facilities study, if a net-metering customer elects to proceed with interconnection, the net-metering customer shall execute a standard Facilities Agreement in the form filed with the electric utility’s net-metering tariff and approved by the Arkansas Public Service Commission.

(f) The Facilities Agreement shall specify the net-metering customer’s appropriate portion of the estimated costs required to provide interconnection service to the net-metering facility pursuant to Arkansas Code § 23-18-604(c)(9)(B), including the net-metering customer’s appropriate portion of any costs of constructing the electric utility facilities necessary to interconnect a net-metering facility, as determined by the facilities study.

(g) Deadlines for electric utilities.

(1) An electric utility shall use reasonable efforts to complete a facilities study within one hundred twenty (120) days.

(2) If a facilities study will take more than one hundred twenty (120) days, an electric utility shall:

(A) Notify the customer in writing that the review cannot be completed in one hundred twenty (120) days; and

(B) Provide an alternate schedule.

(3) An electric utility shall not unreasonably delay providing the results of a facilities study and corresponding Facilities Agreement.

(h)(1) In the event that an electric utility is not able to provide final interconnection costs within the deadlines outlined in subsection (g) of this section, the electric utility shall provide a good-faith estimate of the appropriate portion of the costs and associated expenses required to provide service to the net-metering customer and enable the net-metering customer’s use of the electric utility’s facilities, including any applicable costs of constructing the electric utility facilities necessary to interconnect a net-metering facility pursuant to Arkansas Code § 23-18-604(c)(11)(A)(ii).

(2) If the net-metering customer and electric utility proceed with executing the Facilities Agreement based on a good-faith estimate, the electric utility shall credit or charge the net-metering customer for any difference between the estimate and actual costs once the final appropriate costs are determined.

History

Codification Notes: This section was promulgated as Rule 3.04 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

Subpart 4

23 CAR § 457-401 Standard Interconnection Agreement for Net-metering Facilities, Preliminary Interconnection Site Review Request, Facilities Agreement, and standard net-metering tariffs {#sec-23-car-457-401 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-401}

23 CAR § 457-401. Standard Interconnection Agreement for Net-metering Facilities, Preliminary Interconnection Site Review Request, Facilities Agreement, and standard net-metering tariffs.

(a)(1) Each electric utility shall file, for approval by the Arkansas Public Service Commission, the Standard Interconnection Agreement for Net-metering Facilities (Appendix A), the Preliminary Interconnection Site Review Request (Appendix A-1), its standard Facilities Agreement (Appendix A-2), and two (2) net-metering tariffs, legacy and non-legacy, in standard tariff format (Appendix B).

(2) Facilities Agreement. Each electric utility shall file with its net-metering tariff as Appendix A-2 its standard Facilities Agreement.

(3) Standard net-metering tariffs. Each electric utility shall file the following net-metering tariffs:

(A) A legacy net-metering tariff applicable to the net-metering facilities of net-metering customers who qualify for legacy status pursuant to 23 CAR § 457-206; and

(B) A non-legacy non-metering tariff applicable to the net-metering facilities of net-metering customers who do not qualify for legacy status pursuant to 23 CAR § 457-206.

(b)(1) When filing its net-metering tariffs for Arkansas Public Service Commission approval, an electric utility may propose deviations to the standard net-metering tariffs, including appendices, for the Arkansas Public Service Commission’s consideration.

(2) Any electric utility that requests a deviation from the standard net-metering tariffs shall specifically identify the requested deviation or deviations and file supporting testimony pursuant to the Arkansas Public Service Commission’s Rules of Practice and Procedure, 23 CAR pt. 462, demonstrating good cause and public interest for the proposed deviation.

History

Codification Notes: This section was promulgated as Rule 4.01 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-402 Additional filing and reporting requirements {#sec-23-car-457-402 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-402}

23 CAR § 457-402. Additional filing and reporting requirements.

(a) Each electric utility shall file in Docket No. 06-105-U by March 15 of each year a report individually listing each net-metering facility, the type of resource (solar, wind, storage, etc.), its use by specific rate class or classes, generator capacity rating, inverter capacity rating, and if the net-metering facility is associated with additional meters (yes or no) as of the end of the previous calendar year.

(b) The annual report shall be provided in spreadsheet format.

History

Codification Notes: This section was promulgated as Rule 4.02 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

Subpart 5

23 CAR § 457-501 Gaming defined {#sec-23-car-457-501 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-501}

23 CAR § 457-501. Gaming defined.

(a) “Gaming” means manipulating, misrepresenting, or otherwise configuring a net-metering facility or facilities in a manner that is intended to result in, or that actually results in, the avoidance of statutory or Arkansas Public Service Commission limits or rules.

(b) Gaming of this part includes, but is not limited to, the following actions:

(1) Adding additional capacity to an existing net-metering facility without complying with 23 CAR § 457-302; and

(2) Unauthorized interconnections.

History

Codification Notes: This section was promulgated as Rule 5.01 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-502 Gaming prohibited {#sec-23-car-457-502 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-502}

23 CAR § 457-502. Gaming prohibited.

Gaming of this part is prohibited.

History

Codification Notes: This section was promulgated as Rule 5.02 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR § 457-503 Penalties for gaming {#sec-23-car-457-503 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-503}

23 CAR § 457-503. Penalties for gaming.

Any net-metering customer found to be engaged in activity considered to be gaming under this part may have their qualification as a net-metering customer suspended or terminated by the Arkansas Public Service Commission following notice and opportunity for hearing.

History

Codification Notes: This section was promulgated as Rule 5.03 of the Net-metering Rules prior to codification into the Code of Arkansas Rules. Authorities: Arkansas Code § 23-18-604; Arkansas Code § 23-2-304; Arkansas Code § 23-2-305

23 CAR pt. 457, Appendix A Standard Interconnection Agreement for Net-Metering Facilities {#sec-23-car-pt.-457-appendix-a omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR pt. 457, Appendix A}

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-1

APPENDIX A STANDARD INTERCONNECTION AGREEMENT FOR NET-METERING FACILITIES

I. STANDARD INFORMATION

Section 1. Customer Information Name: Mailing Address: City: State: Zip Code: E- mail Address: Facility Location (if different from above): Daytime Phone: Evening Phone: Utility Customer Account Number (from electric bill) to which the Net-Metering Facility is physically attached: Type of Facility (circle one) Customer-owned Leased Service Agreement

Section 2. Owner Information (if different from Customer) Name: Contact Person: Mailing Address: City: State: Zip Code: Daytime Phone: Evening Phone: E- Mail Address: Fax:

Section 3. Generation Facility Information System Type: Solar Wind Hydro Geothermal Biomass Fuel Cell Micro turbine Energy Storage Device (circle all that apply) Generator Rating (kW): DC Inverter Rating (kW): AC

Describe Location of Accessible and Lockable Disconnect:

Inverter Manufacturer: Inverter Model: Inverter Location: Inverter Power Rating:

Expected Capacity Factor: Expected annual production of electrical energy (kWh) calculated using industry recognized simulation model (PVWatts, etc.):

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-1

Section 4. Installation Information Attach a detailed electrical diagram of the Net-Metering Facility. Installed by: Qualifications/Credentials: Mailing Address: City: State: Zip Code: Daytime Phone: Installation Date:

Section 5. Certification The system has been installed in compliance with national electric codes, including the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), the National Electrical Safety Code (NESC), and Underwriters Laboratories (UL) and (if applicable) the local Building/Electrical Code of (City/County)

Signed (Inspector): Date: (In lieu of signature of inspector, a copy of the final inspection certificate may be attached.)

The system has been installed to my satisfaction and I have been given system warranty information and an operation manual, and have been instructed in the operation of the system.

Signed (Net Metering Customer): Date: Signed (Owner if different from Customer): Date:

Section 6. Utility Verification and Approval Facility Interconnection Approved: Date: Metering Facility Verification by: Verification Date: Utility’s e-mail address:

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-6

II. INTERCONNECTION AGREEMENT TERMS AND CONDITIONS

This Interconnection Agreement for Net-Metering Facilities ("Agreement") is made and entered into this day of , 20 , by ("Electric Utility") and ("Customer"), a (specify whether corporation or other) and (“Owner”), a (specify whether corporation or other), each hereinafter sometimes referred to individually as "Party" or collectively as the "Parties." In consideration of the mutual covenants set forth herein, the Parties agree as follows:

Section 1. The Net-Metering Facility The Net-Metering Facility meets the requirements of Ark. Code Ann. § 23-18-603(10) and the Arkansas Public Service Commission's Net-Metering Rules.

Section 2. Governing Provisions The Parties shall be subject to the applicable provisions of Ark. Code Ann. § 23-18- 601, et seq. and the terms and conditions set forth in this Agreement, the Commission’s Net-Metering Rules, the Commission’s General Service Rules, and the Electric Utility's applicable tariffs.

Section 3. Interruption or Reduction of Deliveries The Electric Utility shall not be obligated to accept and may require Customer to interrupt or reduce deliveries when necessary in order to construct, install, repair, replace, remove, investigate, or inspect any of its equipment or part of its system; or if it reasonably determines that curtailment, interruption, or reduction is necessary because of emergencies, forced outages, force majeure, or compliance with prudent electrical practices. Whenever possible, the Utility shall give the Customer reasonable notice of the possibility that interruption or reduction of deliveries may be required. Notwithstanding any other provision of this Agreement, if at any time the Utility reasonably determines that either the facility may endanger the Electric Utility's personnel or other persons or property, or the continued operation of the Customer's facility may endanger the integrity or safety of the Utility's electric system, the Electric Utility shall have the right to disconnect and lock out the Customer's facility from the Electric Utility's electric system. The Customer's facility shall remain disconnected until such time as the Electric Utility is reasonably satisfied that the conditions referenced in this Section have been corrected.

Section 4. Interconnection Customer shall deliver the as-available energy to the Electric Utility at the Electric Utility's meter. Electric Utility shall furnish and install a standard kilowatt hour meter for Legacy- Transitional Net- Metering Customers or a single standard two-channel digital hour meter for Non-Legacy Net-Metering Customers. Customer shall provide and install a meter socket for the Electric Utility's meter and any related interconnection equipment per the Electric Utility's technical requirements, including safety and performance standards. The Net-Metering Customer and Owner of the Net-Metering Facility, if different, shall

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-6

submit a Standard Interconnection Agreement to the Electric Utility at least thirty (30) days prior to the date the Customer intends to interconnect the Net- Metering Facilities to the utility's facilities. Part I, Standard Information, Sections 1 through 5 of the Standard Interconnection Agreement must be completed by the Net-Metering Customer and Owner (if different from Customer), for the notification to be valid. The Customer shall have all equipment necessary to complete the interconnection prior to such notification. If mailed, the date of notification shall be the third day following the mailing of the Standard Interconnection Agreement. The Electric Utility shall provide a copy of the Standard Interconnection Agreement to the Customer upon request.

Following submission of the Standard Interconnection Agreement by the Customer, the utility shall review the plans of the facility and provide the results of its review to the Customer, in writing, within 30 calendar days. Any items that would prevent Parallel Operation due to violation of applicable safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

If the Electric Utility’s existing facilities are not adequate to interconnect with the Net- Metering Facility, the Customer shall pay the cost of additional or reconfigured facilities prior to the installation or reconfiguration of the facilities.

To prevent a Net-Metering Facility from back-feeding a de-energized line, the Customer shall install a manual disconnect switch with lockout capability that is accessible to utility personnel at all hours.

Customer, at C ustomer’s expense, shall meet all safety and performance standards established by local and national electrical codes including the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), the National Electrical Safety Code (NESC), and Underwriters Laboratories (UL).

Customer, at Customer’s expense, shall meet all safety and performance standards adopted by the utility and filed with and approved by the Commission that are necessary to assure safe and reliable operation of the Net Metering Facility to the utility's system.

Customer shall not commence Parallel Operation of the Net-Metering Facility until the Net Metering Facility has been inspected and approved by the Electric Utility. Such approval shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, the Electric Utility's approval to operate the Customer's Net-Metering Facility in parallel with the Utility's electrical system should not be construed as an endorsement, confirmation, warranty, guarantee, or representation concerning the safety, operating characteristics, durability, or reliability of the Customer's Net-Metering Facility.

Section 5. Modifications or Changes to the Net-Metering Facility Described in Part 1, Section 2

Prior to being made, the Customer shall notify the Electric Utility of, and the Electric Utility shall evaluate, any modifications or changes to the Net-Metering Facility described in Part 1, Standard Information, Section 2 of the Standard Interconnection

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-6

Agreement for Net-Metering Facilities, in compliance with the Commission’s Net- Metering Rules and the Electric Utility’s tariffs.

If the Customer makes such modification without the Electric Utility’s prior written authorization and the execution of a new Standard Interconnection Agreement, the Electric Utility shall have the right to suspend Net-Metering service pursuant to the procedures in Section 6 of the Commission’s General Service Rules.

A Net-Metering Facility shall not be modified or changed to generate electrical energy in excess of the amount necessary to offset all of the Net-Metering Customer requirements for electricity.

Section 6. Maintenance and Permits The C ustomer shall obtain any governmental authorizations and permits required for the construction and operation of the Net-Metering Facility and interconnection facilities. The Customer shall maintain the Net-Metering Facility and interconnection facilities in a safe and reliable manner and in conformance with all applicable laws and regulations.

Section 7. Access to Premises The Electric Utility may enter the Customer's premises to inspect the Customer's protective devices and read or test the meter. The Electric Utility may disconnect the interconnection facilities without notice if the Electric Utility reasonably believes a hazardous condition exists and such immediate action is necessary to protect persons, or the Electric Utility's facilities, or property of others from damage or interference caused by the Customer's facilities, or lack of properly operating protective devices. Section 8. Indemnity and Liability The following is Applicable to Agreements between the Electric Utility and to all Customers and Owners except the State of Arkansas and any entities thereof, local governments, and federal agencies: Each Party shall indemnify the other Party, its directors, officers, agents, and employees against all loss, damages, expense and liability to third persons for injury to or death of persons or injury to property caused by the indemnifying party's engineering, design, construction, ownership, maintenance or operations of, or the making of replacements, additions or betterment to, or by failure of, any of such Party's works or facilities used in connection with this Agreement by reason of omission or negligence, whether active or passive. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs that may be incurred by the other Party in enforcing this indemnity. It is the intent of the Parties hereto that, where negligence is determined to be contributory, principles of comparative negligence will be followed and each Party shall bear the proportionate cost of any loss, damage, expense and liability attributable to that Party’s negligence. Nothing in this paragraph shall be applicable to the Parties in any agreement entered into with the State of Arkansas or any entities thereof, or with local governmental entities or federal agencies. Furthermore, nothing in this Agreement shall be construed to waive the sovereign immunity of the State of Arkansas or any entities thereof. The Arkansas State Claims Commission has exclusive jurisdiction over claims against the state.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-6

Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to or any liability to any person not a Party to this Agreement. Neither the Electric Utility, its officers, agents or employees shall be liable for any claims, demands, costs, losses, causes of action, or any other liability of any nature or kind, arising out of the engineering, design, construction, ownership, maintenance or operation of, or the making of replacements, additions or betterment to, or by failure of, the Customer's facilities by the Customer or any other person or entity. Section 9. Notices The Net-Metering Customer shall notify the Electric Utility of any changes in the information provided herein.

All written notices shall be directed as follows: Attention: [Electric Utility Agent or Representative] [Electric Utility Name and Address] [Electric Utility Email Address] Attention: [Customer] Name: Address: City: Email: Customer notices to Electric Utility shall refer to the Customer's electric service account number set forth in Section 1 of this Agreement.

Section 10. Term of Agreement The term of this Agreement shall be the same as the term of the otherwise applicable standard rate schedule. This Agreement shall remain in effect until modified or terminated in accordance with its terms or applicable regulations or laws.

Section 11. Assignment This Agreement and all provisions hereof shall inure to and be binding upon the respective Parties hereto, their personal representatives, heirs, successors, and assigns. The Customer and/or Owner shall notify the Electric Utility if this Agreement is assigned to a new Net-Metering Customer pursuant to Rule 2.06(F).

Section 12. Net-Metering Customer and Owner Certification I hereby certify that all of the information provided in this Agreement is true and correct, to the best of my knowledge, and that I have read and understand the Terms and Conditions of this Agreement. Signature (Customer): Date: Signature (Owner if different from Customer): Date: IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-6

Dated this day of , 20 .

Customer: Electric Utility:

By: By:

Title: Title: Mailing Address: Mailing Address:

E- mail Address: E- mail Address:

Third-Party Owner (if applicable):

By: Title: Mailing Address:

Email Address:

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A-7

STANDARD INTERCONNECTION AGREEMENT FOR NET-METERING FACILITIES

Disclaimer

POSSIBLE FUTURE RULES OR RATE CHANGES, OR BOTH AFFECTING YOUR NET- METERING FACILITY

The following is a supplement to the Interconnection Agreement you signed with [Electric Utility].

Electricity rates, basic charges, and service fees, set by [Electric Utility] and approved by the Arkansas Public Service Commission (Commission), are subject to change.
I understand that I will be responsible for paying any future increases to my electricity rates, basic charges, or service fees from [Electric Utility].
My Net-Metering System is subject to the current rates of [Electric Utility], and the rules and regulations of the Commission. The [Electric Utility] may change its rates in the future with approval of the Commission or the Commission may alter its rules and regulations, or both may happen. If either or both occurs, my system will be subject to those changes.

By signing below, you acknowledge that you have read and understand the above disclaimer.

Name (printed)

Signature (Customer)

Date

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A1-1

APPENDIX A-1 PRELIMINARY INTERCONNECTION SITE REVIEW REQUEST

I. STANDARD INFORMATION

Section 1. Customer Information Name: Contact Person: Mailing Address: City: State: Zip Code: Facility Location (if different from above): Daytime Phone: Evening Phone: E- Mail Address: If the requested point of interconnection is the same as an existing electric service, provide the electric service account number: Additional Customer Accounts (from electric bill) to be credited with Net Excess Generation: Annual Energy Requirements (kWh) in the previous twelve (12) months for the account physically attached to the Net- Metering Facility and for any additional accounts listed (in the absence of historical data reasonable estimates for the class and character of service may be made):

Type of Facility (circle one) Customer-owned Leased Service Agreement

Section 2. Owner Information (if different from customer information) Name: Contact Person: Mailing Address: City: State: Zip Code: Daytime Phone: Evening Phone: E- Mail Address:

Section 3. Generation Facility Information System Type: Solar Wind Hydro Geothermal Biomass Fuel Cell Micro Turbine Energy Storage Device (circle all that apply) Generator Rating (kW): DC Inverter Rating (kW): AC Capacity Factor: Expected annual production of electrical energy (kWh) of the facility calculated using industry recognized simulation model (PVWatts, etc):

Section 4. Interconnection Information Attach a detailed electrical diagram showing the configuration of all generating facility equipment, including protection and control schemes. Requested Point of Interconnection:

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A1-2

Customer-Site Load (kW) at Net-Metering Facility location (if none, so state): Interconnection Request: Single Phase: Three Phase: Section 5. Signature I hereby certify that, to the best of my knowledge, all the information provided in this Preliminary Interconnection Site Review is true and correct. Net-Metering Customer Signature: Date: Owner Signature (if different from Customer): Date:

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 A1-6

II. TERMS AND CONDITIONS

Section 1. Requirements for Request For the purpose of requesting that the Electric Utility conduct a preliminary interconnection site review for a proposed Net-Metering Facility if requested by the Customer, the Customer shall notify the Electric Utility by submitting a completed Preliminary Interconnection Site Review Request. The Customer shall submit a separate Preliminary Interconnection Site Review Request for each point of interconnection if information about multiple points of interconnection is requested. Part 1, Standard Information, Sections 1 through 4 of the Preliminary Interconnection Site Review Request must be completed for the notification to be valid. If mailed, the date of notification shall be the third day following the mailing of the Preliminary Interconnection Site Review Request. The Electric Utility shall provide a copy of the Preliminary Interconnection Site Review Request to the Customer upon request.

Section 2. Utility Review Following submission of the Preliminary Interconnection Site Review Request by the Customer the Electric Utility shall review the plans of the facility interconnection and provide the results of its review to the Customer, in writing, within 30 calendar days. If the Customer requests that multiple interconnection site reviews be conducted the Electric Utility shall make reasonable efforts to provide the Customer with the results of the review within 30 calendar days. If the Electric Utility cannot meet the deadline, it shall provide the Customer with an estimated date by which it will complete the review. Any items that would prevent Parallel Operation due to violation of safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

The preliminary interconnection site review is non-binding and need only include existing data and does not require the Electric Utility to conduct a study or other analysis of the proposed interconnection site in the event that data is not readily available. The Electric Utility shall notify the Customer if additional site screening may be required prior to interconnection of the facility. The Customer shall be responsible for the actual costs for conducting the preliminary interconnection site review and any subsequent costs associated with site screening that may be required.

Section 3. Standard Interconnection Agreement The preliminary interconnection site review does not relieve the Customer of the requirement to execute a Standard Interconnection Agreement prior to interconnection of the facility.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B ARKANSAS PUBLIC SERVICE COMMISSION THIS SPACE FOR PSC USE ONLY B-1

X. LEGACY NET-METERING

X.1. DEFINITIONS

X.1.1. Legacy Net-Metering Customer – A customer who meets either the definition of Legacy Net-Metering Customer or Legacy-Transitional Net- Metering Customer as defined in the Net-Metering Rules.

X.1.2 Legacy Net-Metering Facility – A Net-Metering Facility meeting the requirements of Ark. Code Ann. § 23-18-603, as in effect on March 12, 2023 (i.e., before the effective date of Act 278 of 2023).

X.1.3 Legacy-Transitional Net-Metering Facility – A Net-Metering Facility meeting the requirements of Ark. Code Ann. § 23-18-603, as in effect on March 13, 2023 (i.e., the effective date of Act 278 of 2023).

X.1.4 All other terms are as defined in Ark. Code Ann. § 23-18-603, except as required by context or by Ark. Code Ann. § 23-18-604(c)(11)(A) as interpretated by the Commission in Docket No. 23-021-R.

X.2. AVAILABILITY

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B ARKANSAS PUBLIC SERVICE COMMISSION Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-2

Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

Customer as defined herein and who has obtained a signed Standard Interconnection Agreement for a Legacy Net-Metering Facility or Facilities or a Legacy-Transitional Net- Metering Facility or Facilities with an Electric Utility pursuant to the Net-Metering Rules and Ark. Code Ann. § 23-18-601 et. seq.

The provisions of the customer’s standard rate schedule are modified as specified herein.

X.2.2. Customers taking service under the provisions of this tariff may not simultaneously take service under the provisions of any other alternative source generation or co-generation tariff

X.3. MONTHLY BILLING RATE STRUCTURE, TERMS, AND CONDITIONS

X.3.1. The monthly billing rate structure, terms, and conditions outlined herein apply until June 1, 2040, to Net-Metering Facilities of Legacy Net-Metering Customers.

X.3.2. The Electric Utility shall separately meter, bill, and credit each Net- Metering Facility even if one (1) or more Net-Metering Facilities are under common ownership.

X.3.3. On a monthly basis, the Legacy Net-Metering Customer shall be billed the charges applicable under the currently effective standard rate schedule and any appropriate rider schedules.

X.3.4. If the kWhs supplied by the Electric Utility exceeds the kWhs generated

by the Net-Metering Facility and fed back to the Electric Utility during the Billing Period, the Legacy Net-Metering Customer shall be billed for the net billable kWhs supplied by the Electric Utility in accordance with the rates and charges under the Legacy Net-Metering Customer’s standard rate schedule.

X.3.5. If the kWhs generated by the Net-Metering Facility and fed back to the Electric Utility during the Billing Period exceed the kWhs supplied by the Electric Utility to the Legacy Net- Metering Customer during the applicable Billing Period, the Electric Utility shall credit the Legacy Net- Metering Customer with any accumulated Net Excess Generation in the next applicable Billing Period.

X.3.6. Net Excess Generation shall first be credited to the Legacy Net-Metering Customer’s meter to which the Net-Metering Facility is physically attached (Generation Meter).

X.3.7. After application of X.3.6. and upon request of the Legacy Net-Metering Customer pursuant to X.3.9., any remaining Net Excess Generation shall be credited to one or more of the Legacy Net-Metering Customer’s meters (Additional Meters) in the rank order provided by the Legacy Net-Metering Customer.

X.3.8. Net Excess Generation shall be credited as described in X.3.7. and X.3.8. during subsequent Billing Periods; the Net Excess Generation credits remaining in a Legacy Net- Metering Customer’s account at the close of a billing cycle shall not expire and shall be carried forward to subsequent billing cycles indefinitely. For Net Excess Generation credits older than Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

twenty-four (24) months, a Legacy Net-Metering Customer may elect to have the Electric Utility purchase the Net Excess Generation credits in the Legacy Net-Metering Customer’s account at the Electric Utility’s Avoided Cost plus any additional sum determined under the Net Metering Rules, if the sum to be paid to the Legacy Net- Metering Customer is at least one hundred dollars ($100). An Electric Utility shall purchase at the Electric Utility’s Avoided Cost, any Net Excess Generation Credits remaining in a Legacy Net-Metering Customer’s account when the Legacy Net-Metering Customer:

ceases to be a customer of the Electric Utility;
ceases to operate the Net-Metering Facility; or
transfers the Net-Metering Facility to another person.

When purchasing Net Excess Generation credits from a Legacy Net- Metering Customer, the Electric Utility shall calculate the payment based on its Avoided Costs for the current year.

X.3.9. Upon request from a Legacy Net-Metering Customer an Electric Utility must apply Net Excess Generation to the Legacy Net-Metering Customer’s Additional Meters provided that:

(a) The Legacy Net-Metering Customer must give at least 30 days’ notice to the Electric Utility.

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

measure the Legacy Net-Metering Customer’s requirements for electricity; may be in a different class of service than the Generation Meter; shall be assigned to one, and only one, Generation Meter; shall not be a Generation Meter; and shall not be associated with unmetered service.

However, the common ownership requirement shall not apply if more than two customers that are governmental entities or other entities that are exempt from state and federal income tax defined under Ark. Code Ann.§ 23-18-603(7)(c) co- locate at a site hosting the Net Metering Facility.

(c) In the event that more than one of the Legacy Net-Metering Customer’s meters is identified, the Legacy Net-Metering Customer must designate the rank order for the Additional Meters to which excess kWh are to be applied. The Legacy Net-Metering Customer cannot designate the rank order more than once during the Annual Billing Cycle.

X.4 ADDITIONAL CHARGES, FEES, AND REQUIREMENTS

X.4.1 An Electric Utility may apply the following additional charges, fees, and requirements to Legacy Net-Metering Customers taking service under this Standard Net-Metering Tariff pursuant to Net-Metering Rule 2.03.

[Either indicate “None” or list all charges, fees, or requirements])

X .4.2 None Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

X.4.3 A standard one-time fee to recover administrative and related interconnection review costs: $XX per [indicate per Legacy Net-Metering Customer or per service]

X .5 RENEWABLE ENERGY CREDITS

X.5.1. Any Renewable Energy Credit created as the result of electricity supplied by a Legacy Net-Metering Customer is the property of the Legacy Net-Metering Customer that generated the Renewable Energy Credit. Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

ATTACHMENT 1

STANDARD INTERCONNECTION AGREEMENT FOR NET-METERING FACILITIES

(insert document) Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

ATTACHMENT 2

PRELIMINARY INTERCONNECTION SITE REVIEW REQUEST

(insert document) Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

ATTACHMENT 3

FACILITIES AGREEMENT

(insert document) Name of Company

Class of Service: All Part III. Rate Schedule No. X

PSC File Mark Only

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-1

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

X. NON-LEGACY NET-METERING

X.1. DEFINITIONS

X.1.1. Non-Legacy Net-Metering Customer – A Net-Metering Customer who meets the definition of Non-Legacy Net-Metering Customer as defined in the Net- Metering Rules.

X.1.2 All other terms are as defined in Ark. Code Ann. § 23-18-603.

X.2. AVAILABILITY

X.2.1. Service under the provisions of this tariff is available to any residential or any other customer who takes service under standard rate schedule(s) (list schedules) who is a Non-Legacy Net-Metering Customer and who has obtained a signed Standard Interconnection Agreement for a Net-Metering Facility or Net-Metering Facilities with an Electric Utility pursuant to the Net-Metering Rules and Ark. Code Ann. § 23- 18-601 et. seq., The provisions of the customer’s standard rate schedule are modified as specified herein.

X.2.2. Net-Metering Customers taking service under the provisions of this tariff may not simultaneously take service under the provisions of any other alternative source generation, co-generation, or interruptible service tariff except as provided in Ark. Code Ann. § 23-18- 603(8)(B).

Per Ark. Code Ann. § 23-18-606(a)(1) (Note: Pursuant to Per Ark. Code Ann. § 23-18- 606(a), each Electric Utility must elect either Option 1 or Option 2.)

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-2

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

X.3. MONTHLY BILLING RATE STRUCTURE, TERMS, AND CONDITIONS – AVOIDED COST X.3.1 This monthly billing rate structure, terms, and conditions is governed by Ark. Code Ann. § 23-18- 606(a)(1). X.3.2. The Electric Utility shall separately meter, bill, and credit each Net-Metering Facility even if one (1) or more Net-Metering Facilities are under common ownership. X.3.3 The Electric Utility shall separately meter the electric energy, measured in kWhs: (a) Supplied by the Electric Utility to the Net-Metering Customer; and (b) Fed back to the Electric Utility from the Net-Metering Customer’s Net- Metering Facility at any time during the applicable billing period. X.3.4 The Electric Utility shall apply the: (a) Commission-approved customer charge, demand, charge, minimum bill provision, and other applicable Commission-approved charges under Ark. Code Ann. § 23-18- 604(c)(1)(A); (b) Commission-approved charges under Ark. Code Ann. § 23-18- 604(c)(1)(A) to the applicable net-metering customers, including without limitation any rates, riders, and surcharges applied based on the volume of kWhs of electricity supplied by an Electric Utility pursuant to this rate structure; and (c) Avoided Cost of the Electric Utility to all kWhs supplied to the Electric Utility by a Net- Metering Customer during the applicable billing period to be credited to the total bill of the Net-Metering Customer in a dollar value, excluding the customer charge and any applicable demand charge or minimum bill provision that the Net-Metering Customer shall pay each month.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-3

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

X.3.5 The Electric Utility shall credit the Net-Metering Customer with any accumulated Net- Metering Surplus as measured in dollars during the next applicable billing period.

X.3.6 Upon request from a Net-Metering Customer pursuant to Ark. Code Ann. § 23- 18-604(d)(2) and Net-Metering Rule 2.05(D), an Electric Utility must apply Net- Metering Surplus to the Net- Metering Customer’s Additional Meters provided that: (a) The Net-Metering Customer must give at least 30 days’ notice to the Electric Utility. (b) The Additional Meter(s) must be identified at the time of the request. Additional Meter(s) shall be under common ownership within a single Electric Utility’s service area; shall be used to measure the Net-Metering Customer’s requirements for electricity; may be in a different class of service than the Generation Meter; shall be assigned to one, and only one, Generation Meter; shall not be a Generation Meter; shall not be associated with unmetered service; and shall be located within a one hundred (100) miles radius of the individual Net-Metering Customer’s Net-Metering Facility unless the Net-Metering Customer meets one of the exceptions provided in Net-Metering Rule 2.05 and Ark. Code. Ann. § 23-18-604(d)(2)(A)(i)(a). (c) To request meter aggregation, the Net-Metering Customer must submit a standard meter aggregation application form and affidavit pursuant to Net-Metering Rule 2.05 and designate the rank order for the Additional Meters to which excess kWh are to be applied. The Net-Metering Customer cannot designate the rank order more than once during the Annual Billing Cycle. X. 3.7 Annual Avoided Cost Redetermination

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-4

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

The Electric Utility shall file a revised Avoided Cost on or before February 1 of each calendar year in compliance with Rule 2.08 of the Net-Metering Rules. The revised Avoided Cost shall be filed in the docket initiated for the Electric Utility and shall be accompanied by a set of workpapers sufficient to fully document the calculations of the revised Avoided Cost and otherwise comply with the Commission’s Rules of Practice and Procedure. The revised Avoided Cost shall be determined by the application of Ark. Code Ann. § 23-18-603 and the Net-Metering Rules to reflect the twelve month average for the prior calendar year of the applicable Locational Marginal Price associated with the Electric Utility's load zone in the Midcontinent Independent System Operator or Southwest Power Pool Independent System Operator Market. The revised Avoided Cost shall be effective for bills rendered on and after the first billing cycle of March of the filing year and shall then remain in effect for twelve (12) months. The Avoided Cost rate for March 1, 20XX, to February 28, 20XX, is $ X.XX/kWh.

Option 2: Per A.C.A. 23-18-606(a)(2) X.3. MONTHLY BILLING RATE STRUCTURE, TERMS, AND CONDITIONS – MONTHLY GRID CHARGE X.3.1 This monthly billing rate structure, terms, and conditions is governed by Ark. Code Ann. § 23-18-606(a)(2). X.3.2. The Electric Utility shall separately meter, bill, and credit each Net-Metering Facility even if one (1) or more Net-Metering Facilities are under common ownership. X.3.3 The Electric Utility shall separately meter the electric energy, measured in kWhs:

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-5

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

(a) Supplied by the Electric Utility to the Net-Metering Customer; and (b) Fed back to the Electric Utility from the Net-Metering Customer’s Net- Metering Facility at any time during the applicable billing period. X.3.4 The Electric Utility shall apply the: (a) Commission-approved customer charge, demand, charge, minimum bill provision, and other applicable Commission-approved charges under Ark. Code Ann. § 23-18-604(c)(1)(A); and (b) Commission-approved riders or surcharges under Ark. Code Ann. § 23- 18- 604(c)(1)(A), including without limitation any rates, riders, and surcharges applied based on the volume of kWhs of electricity supplied by an Electric Utility pursuant to this rate structure. X.3.5 The Electric Utility shall credit the Net-Metering Customer with any accumulated Net Excess Generation during the next applicable billing period.

X.3.6 The Electric Utility shall calculate the net kWhs of the electric energy supplied by the Electric Utility to the Net-Metering Customer, less the Net Excess Generation and any Net Excess Generation carried forward from prior billing periods.

X.3.7 The Electric Utility shall apply the Commission-approved retail rate, not to exceed the kWhs supplied to the net-Metering Customer by the Electric Utility during the applicable billing period.

X.3.8 Upon request from a Net-Metering Customer pursuant to Ark. Code Ann. § 23-18-604(d)(2) and Net-Metering Rule 2.05(D), an Electric Utility must apply Net Excess Generation to the Net-Metering Customer’s Additional Meters provided that: (a) The Net-Metering Customer must give at least 30 days’ notice to the Electric Utility.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-6

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

(b) The Additional Meter(s) must be identified at the time of the request. Additional Meter(s) shall be under common ownership within a single Electric Utility’s service area; shall be used to measure the Net-Metering Customer’s requirements for electricity; may be in a different class of service than the Generation Meter; shall be assigned to one, and only one, Generation Meter; shall not be a Generation Meter; shall not be associated with unmetered service; and shall be located within a one hundred (100) miles radius of the individual Net-Metering Customer’s Net-Metering Facility unless the Net-Metering Customer meets one of the exceptions provided in Net-Metering Rule 2.05 and Ark. Code. Ann. § 23-18-604(d)(2)(A)(i)(a). (c) To request meter aggregation, the Net-Metering Customer must submit a standard meter aggregation application form and affidavit pursuant to Net-Metering Rule 2.05 and designate the rank order for the Additional Meters to which excess kWh are to be applied. The Net-Metering Customer cannot designate the rank order more than once during the Annual Billing Cycle. X.3.9 After applying Net Excess Generation to any Additional Meters pursuant to X.4.7, the Electric Utility shall carry forward any remaining Net Excess Generation to the next billing period.

X.3.10 The Electric Utility shall calculate and apply the Monthly Grid Charge pursuant to Ark. Code Ann. § 23-18-607.

X.3.11 The Monthly Grid Charge is $X.XX/kWh.

X.4 ADDITIONAL CHARGES, FEES, AND REQUIREMENTS

X.4.1 An Electric Utility may apply the following additional charges, fees, and requirements to Net- Metering Customers taking service under this Standard Net-Metering Tariff pursuant to Net- Metering Rule 2.03.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-7

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

[Either indicate “None” or list all charges, fees, or requirements])

X.4.2 None OR X.4.2 A charge to recover any cost of the standard two-channel digital meter: $XX/meter

X.4.3 A standard one-time fee to recover administrative and related interconnection review costs: $XX per [indicate per Net-Metering Customer or per service]

X. 5 RENEWABLE ENERGY CREDITS

X.5.1 A Net-metering customer retains any Renewable Energy Credit created as a result of the electricity supplied by a Net-Metering Customer that generated the renewable energy credit.

X.5.2 The Renewable Energy Credit may be retained, retired, or sold for the sole benefit of the Net- Metering Customer.

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-8

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

ATTACHMENT 1

STANDARD INTERCONNECTION AGREEMENT FOR NET-METERING FACILITIES

(insert document)

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-9

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

ATTACHMENT 2

PRELIMINARY INTERCONNECTION SITE REVIEW REQUEST

(insert document)

APSC FILED Time: 9/29/2023 3:01:28 PM: Recvd 9/29/2023 2:56:41 PM: Docket 23-021-R-Doc. 121 Appendix B

Original Sheet No. Replacing: Sheet No. THIS SPACE FOR PSC USE ONLY B-10

PSC File Mark Only Name of Company

Kind of Service: Electric Class of Service: All Part III. Rate Schedule No. X Title: NON-LEGACY NET-METERING

ATTACHMENT 3

FACILITIES AGREEMENT

(insert document)

23 CAR Part 457 — Net-metering Rules

Chapter XVI

Subchapter A

Subpart 1

23 CAR § 457-101 Purpose {#sec-23-car-457-101 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-101}

23 CAR § 457-102 Statutory provisions {#sec-23-car-457-102 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-102}

23 CAR § 457-103 Definitions {#sec-23-car-457-103 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-103}

23 CAR § 457-104 Other provisions {#sec-23-car-457-104 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-104}

Subpart 2

23 CAR § 457-201 Electric utility requirements {#sec-23-car-457-201 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-201}

23 CAR § 457-202 Metering requirements {#sec-23-car-457-202 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-202}

23 CAR § 457-203 Cost recovery and new or additional charges {#sec-23-car-457-203 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-203}

23 CAR § 457-204 Billing for net-metering {#sec-23-car-457-204 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-204}

23 CAR § 457-205 Meter aggregation {#sec-23-car-457-205 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-205}

23 CAR § 457-206 Legacy status for net-metering facilities {#sec-23-car-457-206 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-206}

23 CAR § 457-207 Leases and safe harbor for service agreements {#sec-23-car-457-207 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-207}

23 CAR § 457-208 Annual avoided-cost redetermination {#sec-23-car-457-208 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-208}

Subpart 3

23 CAR § 457-301 Requirements for initial interconnection of a net-metering facility {#sec-23-car-457-301 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-301}

23 CAR § 457-302 Requirements for modifications or changes to a net-metering facility {#sec-23-car-457-302 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-302}

23 CAR § 457-303 Requirements for Preliminary Interconnection Site Review Request {#sec-23-car-457-303 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-303}

23 CAR § 457-304 Requirements for facilities study and Facilities Agreement {#sec-23-car-457-304 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-304}

Subpart 4

23 CAR § 457-401 Standard Interconnection Agreement for Net-metering Facilities, Preliminary Interconnection Site Review Request, Facilities Agreement, and standard net-metering tariffs {#sec-23-car-457-401 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-401}

23 CAR § 457-402 Additional filing and reporting requirements {#sec-23-car-457-402 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-402}

Subpart 5

23 CAR § 457-501 Gaming defined {#sec-23-car-457-501 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-501}

23 CAR § 457-502 Gaming prohibited {#sec-23-car-457-502 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-502}

23 CAR § 457-503 Penalties for gaming {#sec-23-car-457-503 omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR § 457-503}

23 CAR pt. 457, Appendix A Standard Interconnection Agreement for Net-Metering Facilities {#sec-23-car-pt.-457-appendix-a omnilex-key=us-ar-regs-official--title-23-part-457--23 CAR pt. 457, Appendix A}

Continue your research in ChatGPT or Claude