1. (a) Obligation to pay. Each qualifying facility shall be obligated to pay any interconnection costs estimated on a nondiscriminatory basis with respect to other customers with similar load characteristics.

2. (b) Reimbursement of interconnection costs.

   1. (1) Each utility shall make provisions in its standard tariff (see 23 CAR § 454-304) or the case-by-case legally binding obligations with qualifying facilities for the repayment of interconnection costs.

   2. (2) The utility shall provide the alternatives of either:

      1. (A) Complete payment at the inception of service; or
      2. (B) Periodic payments over a term of not less than two (2) years wherein such payments provide for the amortization of interconnection costs as well as a return to the utility equal to its pretax marginal cost of capital.
   3. (3) In addition, the qualifying facility will reimburse the utility for any recurring interconnection and administrative costs.

Codification Notes: This section was promulgated as Section 3.6 of the Cogeneration Rules prior to codification in the Code of Arkansas Rules.