126.03.23-7. Cost Recovery
AR ADC 126.03.23-7Arkansas Administrative CodeEffective: April 20, 2018
Effective: April 20, 2018
Ark. Admin. Code 126.03.23-7
126.03.23-7. Cost Recovery
A. Cost recovery of conservation and energy efficiency programs shall be in accordance with the provisions of Ark. Code Ann. § 23-3-401 et seq. Cost recovery shall be limited to the incremental costs of providing the program that are not already included in the then current rates of the utility, and may include direct program costs, lost contributions to fixed costs and utility energy efficiency incentives.
B. A utility may request cost recovery through a surcharge or rider. If a utility requests cost recovery through a surcharge or rider, the cost recovery through that mechanism shall be limited to the incremental costs of providing the program that are not included in the then current rates of the utility, and may include direct program costs, lost contributions to fixed costs and utility energy efficiency incentives.
E. If a utility is recovering conservation and energy efficiency program costs through a surcharge or rider, the utility shall file, contemporaneous with the Annual Report under Section 9, a re-determined Energy Efficiency Cost Rate (“EECR”). In support of this re-determined rate, the utility shall file a schedule of actual program costs for the reporting period, actual amounts collected under the rider for the reporting period, and approved program budgets for the next calendar year. In addition, if the utility seeks Commission approval to recover lost contributions to fixed costs and/or utility energy efficiency incentives, and the utility seeks to recover these costs through a surcharge or rider, the utility shall incorporate these costs into the supporting schedule. Any incentive calculations shall be based on the reporting year. The EECR shall be adjusted to reflect a reconciliation of any over or under recovery for the prior year and the approved budget for the next calendar year.
Credits
Amended July 3, 2011; June 22, 2014; April 20, 2018.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 126.03.23-7, AR ADC 126.03.23-7
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