Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 23
5 By: Senator B. Johnson
6 By: Representative L. Fite
8 For An Act To Be Entitled
9 AN ACT TO ESTABLISH THE ELECTRIC COOPERATIVE
10 CORPORATION SELF-REGULATION ACT OF 2021; AND FOR
11 OTHER PURPOSES.
15 TO ESTABLISH THE ELECTRIC COOPERATIVE
16 CORPORATION SELF-REGULATION ACT OF 2021.
19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
21 SECTION 1. Arkansas Code 23-18-201 is amended to read as follows:
22 23-18-201. Jurisdiction of commission generally.
23 Electric Except as specifically provided by law or if an electric
24 cooperative corporation has selected self-regulation as provided in 23-18-
25 308, an electric cooperative corporations corporation generating,
26 manufacturing, purchasing, acquiring, transmitting, distributing, selling,
27 furnishing, and disposing of electric power and energy in this state pursuant
28 to under the Electric Cooperative Corporation Act, 23-18-301 et seq., shall
29 be is subject to the general jurisdiction of the Arkansas Public Service
30 Commission in the same manner and to the same extent as provided by law for
31 the regulation, supervision, or control of public utilities except as
32 provided in this subchapter.
34 SECTION 2. Arkansas Code 23-18-308 is amended to read as follows:
35 23-18-308. Legislative findings and intent Jurisdiction of
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1 (a) The General Assembly finds that a corporation organized under this
3 (1) Is owned by the member-consumers that the corporation
4 serves; and
5 (2) Is regulated by the member-consumers through an elected and
6 governing board of directors.
7 (b) It is the intent of the General Assembly that it is in the public
8 interest to allow self-regulation for a corporation organized under this
10 (c) All corporations organized under this subchapter A corporation
11 shall be in all respects is subject to the jurisdiction, supervision,
12 regulation, and control of the Arkansas Public Service Commission to the same
13 extent and in the same manner as a public utility, except as otherwise
14 specifically provided by law or if a corporation has selected self-regulation
15 as described in subsection (d) of this section.
16 (d) The right of self-regulation and exemption from the jurisdiction
17 of the commission may be selected by the members of a corporation if:
18 (1) A vote on self-regulation and exemption occurred according
19 to the corporation's relevant governance documents;
20 (2) A majority of votes cast were in favor of self-regulation
21 and exemption; and
22 (3) The corporation notifies the commission, in writing, of the
23 results of the membership vote of the corporation within sixty (60) days of
24 the declaration of the results.
25 (e) A corporation that becomes self-regulated under this subchapter
27 (1) Set its own rates, terms, and conditions for service in a
28 manner that reasonably approximates the costs of providing service to the
29 respective classes of service of the corporation; and
30 (2) Ensure the rates, terms, and conditions for service of the
31 corporation are available for access on the website of the corporation or
32 other member-accessible location.
33 (f) A corporation that becomes self-regulated under this subchapter
34 may resubmit to the jurisdiction of the commission using the same procedure
35 described in subsection (d) of this section no earlier than twelve (12)
36 months from the date the corporation first provides notice to the commission
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1 that the corporation would be self-regulated under subdivision (d)(3) of this
3 (g) The commission shall retain jurisdiction over a corporation that
4 becomes self-regulated under this subchapter for:
5 (1) Areas of service established in 23-18-101;
6 (2) Siting of transmission facilities subject to a requirement
7 for a certificate of public convenience and necessity under 23-3-201 23-
8 3-205 or under the Utility Facility Environmental and Economic Protection
9 Act, 23-18-501 et seq., if the property for the facility will be acquired
10 by the corporation using the power of eminent domain;
11 (3) Proceedings brought by a member or consumer of the
12 corporation regarding quality of service;
13 (4) Pole attachments as described in 23-4-1001 et seq.; and
14 (5) Ad valorem tax assessments as described in 26-26-1601 et
16 (h) A self-regulated corporation shall not use its status as a
17 monopoly electric service provider to make the provision of electric service
18 conditional upon the nonelectric service offerings of the corporation.
19 (i) If another provision of Arkansas law conflicts with this
20 subchapter, this subchapter shall control.
22 SECTION 3. Arkansas Code 23-18-331 is amended to read as follows:
23 23-18-331. Service in incorporated areas.
24 (a)(1) The inclusion by incorporation, annexation, or otherwise of any
25 portion of a rural area assigned to corporations a corporation within the
26 limits of an incorporated or unincorporated city, town, or village,
27 regardless of its population, shall not in any respect impair or affect the
28 rights of the corporations under their certificates of convenience and
29 necessity a corporation to continue and extend electric service in the
30 included areas.
31 (2) Notwithstanding any other provisions of law, the
32 corporations shall be a corporation is entitled to continue and extend
33 service therein under the same terms and conditions as those contained in the
34 franchise or indeterminate permit of any other supplier of electric service
35 in the city, town, or village the same as though it were a party to the
36 franchise or indeterminate permit.
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1 (b)(1) A corporation which serves an area within the limits of any
2 municipality under the terms of this subchapter shall as to that area be
3 subject in all respects to the jurisdiction of the Arkansas Public Service
4 Commission to the same extent and in the same manner as it is subject to such
5 jurisdiction in areas outside the limits of municipalities.
6 (2) Any such A city, town, or village shall have the same
7 authority to impose taxes, charges, or fees in respect to the business of a
8 corporation conducted within the corporate limits of such the city, town, or
9 village as it has in respect to business conducted by other suppliers of
10 electric service.
11 (c) Nothing in this section shall in any manner This section does not
12 restrict or impair the right of any a municipality to acquire, construct,
13 expand, maintain, or operate any electric generation, transmission, or
14 distribution facilities within the corporate limits of the city, town, or
15 village in Arkansas as such the limits may of the city, town, or village now
16 exist or as such the limits of the city, town, or village may exist upon the
17 extension or expansion of the city limits of the city, town, or village.
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