§ 23-3-602 - Definitions. - Arkansas Statutes

23-3-602. Definitions.

As used in this subchapter, unless the context otherwise requires:

(1) "Certificate of extension project" or "certificate" means the commission order authorizing a gas utility seeking the order to undertake an extension project. The certificate shall be issued contemporaneously with the commission order approving the imposition of rates and surcharges sufficient to recover the excess expenditures arising out of those extension projects that have been certificated and completed pursuant to this subchapter;

(2) "Commission" means the Arkansas Public Service Commission;

(3) "Cost-of-service recovery" means the method by which the commission computes the change in rates necessary for the gas utility to recover the cost of that portion of the excess expenditures not recovered through the surcharge. Traditional cost-of-service principles shall be followed in adjusting rates when the cost-of-service recovery method is used to recover the cost of excess expenditures. The allocation of class responsibility for payment of the excess expenditures under the cost-of-service recovery method shall be in accordance with the most recent cost-of-service study approved for the applicant gas utility;

(4) "Excess expenditures" means the difference between:

(A) Expenditures made by a gas utility for extensions of service to areas not served by a gas utility;

(B) The sum of the investment allowable under a gas utility's extension policy, plus amounts, if any initially available from other applicable sources, which include without limitation funds from:

(i) The Arkansas Economic Development Commission or its successor;

(ii) Industrial development bonds, municipal bonds, city bonds, or improvement district bonds;

(iii) Special funds which may be created by particular commission orders for individual gas utilities in rate cases or other proceedings; and

(iv) Customer-provided contributions in aid of construction;

(5) "Extension project" means any extension proposed by a gas utility which is intended to serve areas of Arkansas not served by any gas utility or within the range of the extension policy of any gas utility, which will result in excess expenditures if constructed, and for which the gas utility seeks authorization from the commission to begin, together with the authorization to change its rates and surcharges to recover the excess expenditures as provided in this subchapter;

(6) "Gas utility" means any natural gas public utility jurisdictional to the Arkansas Public Service Commission; and

(7) "Surcharge" means a charge which the commission may authorize a gas utility to impose on those customers who directly benefit from extensions funded by excess expenditures. The surcharge may recover the entire excess expenditure or a portion thereof, as the commission shall order.