AR: New law allows utilities to recover net metering “costs”


Arkansas has enacted legislation (H.B. 1004) that requires the Public Service Commission to establish rates to ensure that utilities recover the entire cost of providing service to net metering customers. The entire cost of providing service includes, without limitation, any quantifiable additional costs and/or benefits associated with the customer’s use of utility capacity, the distribution system, or the transmission system. Any costs affecting the utility’s reliability must also be included in the rate design. The law also authorizes the PSC to allow net metering for non-residential systems exceeding 300 kW if the decision improves the state’s ability to attract businesses. Residential net-metering systems are limited to either 25 kW or 100% of the net metering customer’s highest monthly usage within the previous 12 months.