§ 23-4-507 - Modification or disapproval of surcharge. - Arkansas Statutes

23-4-507. Modification or disapproval of surcharge.

(a) After its investigation and hearing thereon, the Arkansas Public Service Commission may modify or disapprove all or any portion of the surcharge upon a finding that:

(1) The expenditures were not made for the purposes set forth in 23-4-501 or were not reasonably incurred or were not substantiated;

(2) The amount of the surcharge has been erroneously calculated; or

(3) The allocation of the surcharge among the customers of the utility is unreasonable.

(b) (1) If the commission determines that the allocation of the surcharge among the customers of the utility should be modified, it shall fix and determine the appropriate allocation among the utility's customers which shall be applied prospectively.

(2) The commission shall further direct the utility to credit or charge, as the case may be, the affected classes of customers whose surcharges were determined to be improperly allocated for the period between the effective date of the surcharge and the effective date of the modification. As to those classes of customers entitled to credits, the utility also shall pay interest on those credits, as applicable.

(c) In the event that the commission determines that all or any portion of the proposed surcharge should be disapproved pursuant to either subdivision (a)(1) or (2) of this section, the commission shall determine the just and reasonable amount of the surcharge to be charged or applied by the utility from and after the time the proposed surcharge took effect. In the same order, the commission shall fix the amounts, plus interest, if any, to be refunded to the utility's customers.