Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: S1/26/21 S2/1/21 S2/9/21 S3/2/21
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 23
4
5 By: Senator B. Johnson
6 By: Representative L. Fite
7
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.
12
13
14 Subtitle
15 TO ESTABLISH THE ELECTRIC COOPERATIVE
16 CORPORATION SELF-REGULATION ACT OF 2021.
17
18
19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
20
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.
33
34 SECTION 2. Arkansas Code 23-18-308 is amended to read as follows:
35 23-18-308. Legislative findings and intent Jurisdiction of
36 commission.
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1 (a) The General Assembly finds that a corporation organized under this
2 subchapter:
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
9 subchapter.
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) Excluding a generation and transmission cooperative as defined in
17 23-4-1101, the right of self-regulation and exemption from the jurisdiction
18 of the commission may be selected by the members of a corporation if:
19 (1)(A) At least ninety (90) days before a vote on self-
20 regulation, the corporation notifies the corporation's membership of the plan
21 to conduct a vote of member-consumers regarding self-regulation.
22 (B) The notice described in subdivision (d)(1)(A) of this
23 section shall:
24 (i) Be sent via postal mail to each member-
25 consumer's account using the address on file; and
26 (ii) Include:
27 (a) A summary of the vote proposed and the
28 reasons for the vote to be taken;
29 (b) Dates, times, and locations for at least
30 three (3) opportunities for member-consumer comments, which shall occur
31 before the vote is taken, including instructions for how to submit electronic
32 comments to the corporation; and
33 (c) The procedure necessary for the member-
34 consumer to cast a vote.
35 (C) The corporation shall post notice of the vote in
36 accessible locations, including without limitation the corporation
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1 newsletter, website, or other regular methods of member-consumer
2 communication;
3 (2) A vote on self-regulation and exemption occurred according
4 to the corporation's relevant governance documents;
5 (3) A majority of votes cast were in favor of self-regulation
6 and exemption; and
7 (4) The corporation notifies the commission, in writing, of the
8 results of the membership vote of the corporation within sixty (60) days of
9 the declaration of the results.
10 (e) After following the procedure in subsection (d) of this section,
11 once a majority of the votes cast are in favor of becoming self-regulated
12 under this subchapter, then the process to become self-regulated shall begin
13 as soon as possible and shall be completed within twelve (12) months of the
14 majority vote to become self-regulated.
15 (f) A corporation that becomes self-regulated under this subchapter
16 shall:
17 (1)(A) Set its own rates, terms, and conditions for service in a
18 manner that reasonably approximates the costs of providing service to the
19 respective classes of service of the corporation.
20 (B) For any changes in rates, a member-consumer shall be
21 provided advance notice of at least ninety (90) days through the same
22 communication channel the member-consumer selects for receiving billing; and
23 (2) Ensure the rates, terms, and conditions for service of the
24 corporation are available for access on the website of the corporation or
25 other member-accessible locations as well as those locations on file with the
26 commission for informational purposes as listed in the commission-designated
27 docket.
28 (g) Any corporate action undertaken in good faith while the
29 corporation acts in a self-regulated capacity is valid and effective as if
30 determined by the commission.
31 (h)(1) A corporation that becomes self-regulated under this subchapter
32 may resubmit to the jurisdiction of the commission if:
33 (A) The membership of a corporation requests a return to
34 the jurisdiction of the commission as follows:
35 (i) The commission or the corporation receives a
36 petition from at least ten percent (10%) of the corporation's member-
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1 consumers, as defined in 23-4-901, requesting that the corporation return
2 to the jurisdiction of the commission, following the same form and procedures
3 as described in 23-4-904; and
4 (ii) The commission orders the corporation or the
5 corporation decides to conduct a membership vote regarding returning to the
6 jurisdiction of the commission using the same procedure described in
7 subsection (d) of this section; or
8 (B) The corporation's board of directors holds a
9 membership vote on the return to the jurisdiction of the commission using the
10 same procedure described in subsection (d) of this section.
11 (2) After following the procedure in subdivision (h)(1)(A) or
12 subdivision (h)(1)(B) of this section, if a majority of the votes cast are in
13 favor of returning to the jurisdiction of the commission, then:
14 (A) The process to return the corporation to the
15 jurisdiction of the commission shall begin as soon as possible after the
16 membership vote; and
17 (B) Unless otherwise ordered by the commission, a
18 corporation's return to the jurisdiction of the commission shall be completed
19 within twelve (12) months of the majority vote to return to commission
20 jurisdiction.
21 (i) The commission shall retain jurisdiction over a corporation that
22 becomes self-regulated under this subchapter for:
23 (1) Areas of service established in 23-18-101;
24 (2) Siting of transmission facilities subject to a requirement
25 for a certificate of public convenience and necessity under 23-3-201 23-
26 3-205 or under the Utility Facility Environmental and Economic Protection
27 Act, 23-18-501 et seq., if the property for the facility will be acquired
28 by the corporation using the power of eminent domain;
29 (3) Proceedings brought by a member or consumer of the
30 corporation regarding quality of service;
31 (4) Pole attachments as described in 23-4-1001 et seq.;
32 (5) Ad valorem tax assessments as described in 26-26-1601 et
33 seq.;
34 (6) Net metering as defined in the Arkansas Renewable Energy
35 Development Act of 2001, 23-18-601 et seq.; and
36 (7) Demand response as defined in the Regulation of Electric
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1 Demand Response Act, 23-18-1001 et seq.
2 (j) A self-regulated corporation shall not use its status as a
3 monopoly electric service provider to:
4 (1) Make the provision of electric service conditional upon the
5 nonelectric service offerings of the corporation; or
6 (2) Offer consideration to induce a member-consumer to switch
7 from another public utility's service to the service of the corporation.
8 (k)(1) This subchapter does not conflict with:
9 (A) Section 14-207-101 et seq. or otherwise affect the
10 rights of a municipal electric utility, as defined in the Arkansas Municipal
11 Electric Utility Interlocal Cooperation Act of 2003, 25-20-401 et seq.,
12 relating to extensions of service or otherwise;
13 (B) The Broadband Over Power Lines Enabling Act, 23-18-
14 801 et seq.;
15 (C) Commission funding provisions described in 23-3-309
16 and 23-3-310;
17 (D) Section 23-3-114(a) concerning the prohibition of
18 unreasonable preferences or disadvantages for rates and service between
19 classes of service; and
20 (E) Other laws pertaining to public utilities that do not
21 address the jurisdiction or authority of the commission over a self-regulated
22 corporation.
23 (2) If another provision of Arkansas law conflicts with this
24 subchapter concerning the jurisdiction or authority of the commission over a
25 self-regulated corporation, then this subchapter controls.
26
27 SECTION 3. Arkansas Code 23-18-331 is amended to read as follows:
28 23-18-331. Service in incorporated areas.
29 (a)(1) The inclusion by incorporation, annexation, or otherwise of any
30 portion of a rural area assigned to corporations a corporation within the
31 limits of an incorporated or unincorporated city, town, or village,
32 regardless of its population, shall not in any respect impair or affect the
33 rights of the corporations under their certificates of convenience and
34 necessity a corporation under their commission approved service territory
35 certificate to continue and extend electric service in the included areas.
36 (2) Notwithstanding any other provisions of law, the
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1 corporations shall be a corporation is entitled to continue and extend
2 service therein under the same terms and conditions as those contained in the
3 franchise or indeterminate permit of any other supplier of electric service
4 in the city, town, or village the same as though it were a party to the
5 franchise or indeterminate permit.
6 (b)(1) A corporation which serves an area within the limits of any
7 municipality under the terms of this subchapter shall as to that area be
8 subject in all respects to the jurisdiction of the Arkansas Public Service
9 Commission to the same extent and in the same manner as it is subject to such
10 jurisdiction in areas outside the limits of municipalities.
11 (2) Any such A city, town, or village shall have the same
12 authority to impose taxes, charges, or fees in respect to the business of a
13 corporation conducted within the corporate limits of such the city, town, or
14 village as it has in respect to business conducted by other suppliers of
15 electric service.
16 (c) Nothing in this section shall in any manner This section does not
17 restrict or impair the right of any a municipality to acquire, construct,
18 expand, maintain, or operate any electric generation, transmission, or
19 distribution facilities within the corporate limits of the city, town, or
20 village in Arkansas as such the limits may of the city, town, or village now
21 exist or as such the limits of the city, town, or village may exist upon the
22 extension or expansion of the city limits of the city, town, or village.
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25 /s/B. Johnson
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