1. (a) Definitions.

   1. (1) Newly constructed. “Newly constructed” means:

      1. (A) Original construction that was not irrevocably approved or constructed on or before July 1, 1981; or
      2. (B) Conversion of a building from one (1) use to another involving multiple customers.

   2. (2) Premises.

      1. (A) Separate premises. Premises are separate and shall be separately metered and billed if they are on different, noncontiguous tracts of land.
      2. (B) Nonseparate premises.
2. (i) Premises on the same tract or contiguous tracts of land may be master metered provided that the premises:
3. (a) (a) Are operated as one (1) location by an individual customer;
4. (b) (b) Are physically integrated and essentially part of each other;
5. (c) (c) Provide a complete service or produce a complete product;
6. (d) (d) Are similar in terms of the nature and purpose of energy use; and

7. (e) (e) Are in the same service territory.

   1. (ii) Tracts of land separated by public streets, public roads, or public alleys are considered contiguous.

      1. (iii) The customer shall:
8. (a) (a) Own and pay for all facilities beyond such master meter; and
9. (b) (b) Pay all costs associated with the installation, removal, and rearrangement of such facilities necessary to allow the utility to provide service through a single meter.

10. (b) General requirements.

    1. (1)

       1. (A) Utilities shall separately meter and bill separate premises even if under common ownership.
       2. (B) Utilities may not combine metering and billing unless some other part of this section allows it.

    2. (2)

       1. (A) Gas and electric utilities may not install master meters or combine the bills of individual customers in any newly constructed residential, commercial, and industrial complexes of two (2) stories or fewer, and mobile home parks.
       2. (B) This section does not apply to dormitories, hotels, and motels.

       3. (C) Gas and electric utilities shall offer to provide individual meters for all premises not covered by this section where multiple individual usage of gas and electricity could occur and where master metering would also be possible.

          1. (c) Exemptions.

    3. (1) If a utility or building owner applies for an exemption of subdivision (b)(2) of this section, it must:

       1. (A) Prove, in addition to the showing that must be made in 23 CAR § 455-104, that the costs of separate metering and billing would be greater than the long-term benefits to the utility’s ratepayers as a whole; and
       2. (B) Provide evidence that master metering does not conflict with the Arkansas Energy Code for New Building Construction, 15 CAR pt. 233.

    4. (2) Benefits to be considered may include, but are not limited to, the following:

       1. (A) Increased efficiency of consumption by individual devices;
       2. (B) Overall reduction of demand for present and future energy and capacity;
       3. (C) Encouragement of systems using renewable fuel sources other than fossil fuels;
       4. (D) Providing accurate price signals which reflect the true value and cost of energy to individual customers; and
       5. (E) Other benefits gained from energy efficiency and conservation.

Codification Notes: This section was promulgated as Rule 5.20 of the General Service Rules prior to codification in the Code of Arkansas Rules.