1. (a) Applicability.

   1. (1) This section applies to the conduct of negotiations on a case-by-case basis between electric utilities and qualifying facilities.
   2. (2) It does not apply to any qualifying facilities that elect to adopt a standard tariff available from the electric utility.

2. (b) General rule. To ensure the timely progress in the case-by-case negotiation of arrangements between an electric utility and a qualifying facility, the parties are to conduct negotiations in a manner that is consistent with the following procedural steps and schedules:

   1. (1)

      1. (A) Any party wishing to initiate negotiations with an electric utility shall send a written notification via certified mail to the designated utility.
      2. (B) The notification should contain the following information:

3. (i) The name, address, and responsible individual of the owner of the potential qualifying facility;

   1. (ii) A general description of the proposed facility;

      1. (iii) A general statement of the type of relationship that the potential qualifying facility wishes to enter into with the utility, e.g., duration, level of sales for energy, capacity; and

         1. (iv)
4. (a) (a) The nature of any specific data or information that the potential qualifying facility would like to inspect (see 23 CAR § 454-302, generally).

5. (b) (b) Any and all costs of supplying or generating such data or information shall be recovered from the qualifying facility and not from the utility's ratepayers;

   1. (2) Within thirty (30) days of the receipt of the initial notification provided by the potential qualifying facility, the electric utility shall:

      1. (A) Acknowledge receipt of the potential qualifying facility's notification and advise the qualifying facility of the estimated cost of supplying the data requested pursuant to subdivision (b)(1)(B)(iv) of this section, provided that once a potential qualifying facility initiates negotiations under this subsection with an electric utility, the utility may require the potential qualifying facility to furnish the information listed by 23 CAR § 454-207(b), optional screening procedure by electric utilities;
      2. (B) Supply the required requested data or information to the potential qualifying facility;
      3. (C) Designate a responsible individual to direct all interactions between the electric utility and the potential qualifying facility, and inform the potential qualifying facility of that person's identity; and
      4. (D) Designate a time and place not later than forty-five (45) days after receipt of the initial notification to hold a first negotiation session; and
   2. (3) The electric utility and potential qualifying facility will meet as often as possible to allow the conclusion of negotiations within one hundred fifty (150) days of the initial notification of the utility by the potential qualifying facility.

Codification Notes: This section was promulgated as Section 4.1 of the Cogeneration Rules prior to codification in the Code of Arkansas Rules.