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23-4-1203. Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-4-1203. Definitions.
As used in this subchapter:
(1)(A) “Earned return rate” means a public utility's return on common equity for a formula rate review test period that is based on the numbers or values of the formula rate review test period and calculated by dividing the weighted earned common equity rate by the common equity ratio percentage.
(B) As used in subdivision (1)(A) of this section, “weighted earned common equity rate” means the weighted formula rate review test period cost rate for common equity minus the operating income deficiency, or excess, divided by a public utility's rate base;
(2) “Formula rate review test period” means a test period as stated in § 23-4-406 or a projected year;
(3) “Historical year” means, when using a formula rate review test period containing projections, the twelve (12) consecutive months that precede the second and any subsequent formula rate review test period;
(4) “Projected year” means the twelve (12) months following the proposed effective date under § 23-4-1205 for the first formula rate review filing and each subsequent consecutive twelve-month period; and
(5) “Target return rate” means a cost rate of common equity value as established by the Arkansas Public Service Commission in the commission's order addressing the public utility's most recent application for a general change in rates and charges.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-4-1203
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-4-1203
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 0dc4ba3fd50e872d61cfeb07bc2e9f9539732c5e2c5739f989cbc2551ae37e3b
Source location: content.xml paragraph 4944
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23-4-1203. Definitions.
As used in this subchapter:
(1)(A) “Earned return rate” means a public utility's return on common equity for a formula rate review test period that is based on the numbers or values of the formula rate review test period and calculated by dividing the weighted earned common equity rate by the common equity ratio percentage.
(B) As used in subdivision (1)(A) of this section, “weighted earned common equity rate” means the weighted formula rate review test period cost rate for common equity minus the operating income deficiency, or excess, divided by a public utility's rate base;
(2) “Formula rate review test period” means a test period as stated in § 23-4-406 or a projected year;
(3) “Historical year” means, when using a formula rate review test period containing projections, the twelve (12) consecutive months that precede the second and any subsequent formula rate review test period;
(4) “Projected year” means the twelve (12) months following the proposed effective date under § 23-4-1205 for the first formula rate review filing and each subsequent consecutive twelve-month period; and
(5) “Target return rate” means a cost rate of common equity value as established by the Arkansas Public Service Commission in the commission's order addressing the public utility's most recent application for a general change in rates and charges.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-4-1205. Filing — Procedure.
(a)(1) A public utility filing an application for a general change or modification to its rates and charges under § 23-4-401 et seq., may as part of its application, file a notice with the Arkansas Public Service Commission that the public utility is electing to have its rates regulated under a formula rate review mechanism as authorized by this subchapter.
(2) The notice shall designate the formula rate review test period based upon either a projected year or a test period under § 23-4-406.
(b) Upon receipt of a notice as described in subdivision (a)(1) of this section, the commission shall:
(1) Regulate the rates of the public utility according to this subchapter; and
(2) Be required to approve a formula rate review mechanism utilizing the formula rate review test period designated by the public utility.
(c)(1) A public utility that has filed a notice of intent or has an application for a general change in rates and charges pending under § 23-4-401 et seq. that contains a notice of election to be regulated under a formula rate review effective March 27, 2015, shall be regulated under this subchapter.
(2) A public utility shall not file for an initial formula rate review until at least one hundred eighty (180) days after rates have become effective pursuant to the final order on the application for a general change in rates. A public utility that has filed a notice of intent or has an application for a general change in rates and charges pending under § 23-4-401 et seq. that contains a notice of election to be regulated under a formula rate review effective March 27, 2015, may file for the initial formula rate review one hundred fifty (150) days after rates have become effective pursuant to the final order in the general rat
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-4-1205
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-4-1205. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-4-406. Test periods to justify new rates.
For the purpose of justifying the reasonableness of a proposed new rate schedule, a utility may utilize either a historical test period of twelve (12) consecutive calendar months or a forward-looking test period of twelve (12) consecutive calendar months consisting of six (6) months of actual historical data derived from the books and records of the utility and six (6) months of projected data which together shall be the period or test year upon which fair and reasonable rates shall be determined by the Arkansas Public Service Commission. However, the commission shall also permit adjustments to any test year so utilized to reflect the effects on an annualized basis of any and all changes in circumstances which may occur within twelve (12) months after the end of the test year where such changes are both reasonably known and measurable.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-4-406
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-4-406. This identifies an authority to review, not proof of applicability.