Arkansas

Summary In May 2007, the Public Service Commission (PSC) approved Rules for Conservation and Energy Efficiency Programs requiring electric and gas utilities to propose and administer energy efficiency programs (Docket No. 06-004-R, Orders No. 1, 12, 18). Investor-owned electric and natural gas public utilities are required to make Comprehensive Plan filings beginning April 1, 2009.  Prior to 2007, despite a 1977 statute in place that established the legal basis for utility energy efficiency programs, such programs generally had not been funded and offered by utilities in Arkansas over most of the last 30 years. Along with these new requirements for conservation and energy efficiency programs, the Arkansas PSC also has recently established new guidelines for utility resource planning, which include provisions for demand-side resources.

 In May 2007, the Public Service Commission approved Rules for Conservation and Energy Efficiency Programs requiring electric and gas utilities to propose and administer energy efficiency programs (Docket No. 06-004-R, Orders No. 1, 12, 18). The state’s jurisdictional utilities filed Energy Efficiency Plans in July 2007 containing proposed Quick Start efficiency programs. All seven gas and electric utilities elected to sponsor and fund statewide programs supporting weatherization of severely energy-inefficient homes and promoting energy efficiency education through media channels. The three gas companies jointly sponsored a statewide energy audit program for commercial and industrial customers.  Each of the seven utilities individually proposed EE programs. There are now 22 electric utilities regulated by the AR PSC, including cooperatives and investor-owned, but not municipal or independent power producers.

Investor-owned electric and natural gas public utilities are required to make Comprehensive Plan filings beginning April 1, 2009. These are intended to move beyond the Quick Start plans for program years 2007 through 2009. Arkansas Oklahoma Gas Corporation, Arkansas Western Gas Company, Centerpoint Energy Resources Corporation, Empire District Electric Company, and Oklahoma Gas and Electric Company were granted an extension for filing, which were due July 1, 2009 (see Docket No. 06-004-R; 2007 Energy Efficiency TF Dockets No. 075 - 079 and 081 - 085; 2008 RP Dockets No. 038 - 063, 065 – 067).

Based on the Arkansas Weatherization Program Annual Report, the Quick Start Arkansas Weatherization Program (AWP) has overcome significant start-up barriers to become a highly successful energy efficiency and weatherization program, very well regarded by recipients of the services provided. AWP performance has improved to the point that in the fourth quarter of 2008, the agencies achieved an average of 79% of their implementation targets. By continuing this trajectory into 2009 and beyond, the agencies are achieving energy efficiency savings at unprecedented rates in Arkansas energy-inefficient homes (see Arkansas Weatherization Program Annual Report – 2008. Docket Nos. 07-079-TF and 08-065-RP).

In Docket No. 08-144-U, Order No. 1 (Oct. 7, 2008), the commission established an inquiry regarding the promotion of the expanded development of Sustainable Energy Resources, including energy efficiency, demand response, renewable resources, and Automatic Metering Infrastructure in Arkansas. The Arkansas Sustainable Energy Collaborative was also established to assist the commission in conducting the inquiry.

According to the Energy Information Administration, Arkansas electric utilities reported efficiency program savings of 6,154 MWh in 2007.

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Recovery of incremental costs associated with commission-approved electricity and natural gas energy efficiency programs is accomplished through Energy Efficiency Cost Recovery riders. According to the Energy Information Administration, Arkansas utilities spent $1.6 million on energy efficiency in 2007.  Arkansas spending on natural gas efficiency programs was $530,000 in 2008.

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None in place or proposed.

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In 2007 rate cases, the Arkansas PSC approved a decoupling mechanism, a Billing Determinant Adjustment (BDA) Tariff that furthers its goal of promoting energy efficiency, for the three major natural gas distribution companies in the state. The purpose of the BDA Tariff is to account for declines in non-gas revenues due to declining gas volumes caused by conservation and decreasing billing determinants. The tariff applies to the Residential and Small Commercial rate classes and will be in effect for three evaluation periods (2008, 2009, and 2010).

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Pending as of July 2009, Dockets E-00000J-08-0314 and G-00000C-08-0314 are currently investigating regulatory and rate incentives for gas and electric utilities.

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The commission approved "Resource Planning Guidelines for Electric Utilities" in Docket 06-028-R (final order issued in January 2007).These guidelines include specific requirements for demand-side resources. Utilities are required to consider "all reasonably useful and economic supply and demand resources that are available to a utility or its customers" for "incremental capacity needs." Further, "[u]tility efforts to encourage energy efficiency, conservation, demand-side management, interruptible load and price responsive demand should be identified." Although there is no loading order prioritizing energy efficiency, the commission approved Rules for Conservation and Energy Efficiency Programs in May 2007 (Docket 06-004-R) requiring utilities to file energy efficiency plans to implement cost-effective energy efficiency programs. Additionally, all investor-owned electric and natural gas public utilities are required to make Comprehensive Plan filings. The Comprehensive Plans are intended to move energy efficiency in Arkansas beyond the initial Quick Start plans that were filed and approved for program years 2007 through 2009.

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• Arkansas Public Service Commission
• Statewide collaborative proceedings. Search for documents in Docket #06-004-R.
• Rules for Conservation and Energy Efficiency Programs
• Database of State Incentives for Renewables and Efficiency
• Southeast Energy Efficiency Alliance
  

Last Updated 08/24/2009

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