23-18-603. Definitions.

23-18-603. Definitions. As used in this subchapter: (1) “Avoided cost” means: (A) For an electric utility other than a municipal utility, the costs to an electric utility of electric energy or capacity, or both, that, but for the generation from the net-metering facility or facilities, the utility would generate itself or purchase from another source, as determined by a commission consistent with § 23-3-701 et seq.; or (B) For a municipal utility, the definition provided by the governing body of the municipal utility; (2) “Commission” means the Arkansas Public Service Commission or other appropriate governing body for an electric utility as defined in subdivision (3) of this section; (3) “Electric utility” means a public or investor-owned utility, an electric cooperative, or any private power supplier or marketer that is engaged in the business of supplying electric energy to the ultimate consumer or any customer classes within the state; (4)(A) “Municipal utility” means a utility system owned or operated by a municipality that provides electricity. (B) “Municipal utility” includes without limitation a: (i) Utility system managed or operated by a nonprofit corporation under § 14-199-701 et seq.; and (ii) Utility system owned or operated by a municipality or by a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.; (5) “Net excess generation” means the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate that a net-metering customer has fed back to the electric utility that exceeds the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate used by that customer during the applicable period determined by a commission; (6) “Net metering” means measuring the difference in amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate supplied by an electric utility to a net-metering customer and the electricity generated by a net-metering customer and fed back to the electric utility over the applicable period determined by a commission; (7) “Net-metering customer” means a customer of an electric utility that: (A) Is an owner of a net-metering facility; (B) Leases a net-metering facility subject to the following limitations: (i) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and (ii) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or (C) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A), as in effect on July 24, 2019; (8) “Net-metering facility” means a facility for the production of electric energy that: (A) Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and micro turbines that generate electricity if the fuel source is entirely derived from renewable resources; (B) Has a generating capacity of not more than: (i) The greater of twenty-five kilowatts (25 kW) or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months for residential use; (ii) For customers of electric utilities, one thousand kilowatts (1,000 kW) for use other than residential use unless otherwise allowed by a commission under § 23-18-604; or (iii) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605; (C) Is located in Arkansas; (D) Can operate in parallel with an electric utility's existing transmission and distribution facilities; (E) Is intended primarily to offset part or all of the net-metering customer requirements for electricity; and (F)(i) May include an energy storage device that is configured to receive electric energy solely from a net-metering facility. (ii) The capacity of an energy storage device shall not be used to calculate the capacity limits listed in subdivision (8)(B) of this section if the energy storage device is configured to receive electric energy solely from a net-metering facility; (9) “Quantifiable benefits” means the: (A) Reasonably demonstrated costs that: (i) Are related to the provision of electric service and based on the utility's most recent cost-of-service study filed with the commission; and (ii) Will be avoided by the utility by the use of net metering; (B) Monetary value provided to a utility by the use of net metering as specified by a market mechanism, if any, of the regional transmission organization of which the electric utility is a member; and (C) Monetary value provided to a utility by the use of net metering as specified by a market mechanism, if any, that measures utility distribution system benefits; and (10) “Renewable energy credit” means the environmental, economic, and social attributes of a unit of electricity, such as a megawatt hour, generated from renewable fuels that can be sold or traded separately.