1. (a) Each electric utility shall elect in its standard net-metering tariff one (1) of the rate structures outlined under Arkansas Code § 23-18-606.

2. (b) Each electric utility shall bill net-metering customers under either of two (2) different net-metering tariffs as outlined in the Appendix B standard net-metering tariffs:

   1. (1) For a net-metering facility of a net-metering customer that qualifies to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, pursuant to Arkansas Code § 23-18-604(c)(11)(A), electric utilities shall:

      1. (A) Credit a net-metering customer with the amount of any accumulated net excess generation in the next applicable billing period; and
      2. (B) Base the bill of the net-metering customer on the net amount of electricity as measured in kilowatt hours that the net-metering customer has received from or fed back to the electric utility during the billing period; or
   2. (2) For a net-metering facility of a net-metering customer that does not qualify to remain under the rate structure, terms, and conditions in effect before December 31, 2022, until June 1, 2040, pursuant to Arkansas Code § 23-18-604(c)(11)(A), electric utilities shall bill a net-metering customer under the alternative rate structure elected by the electric utility pursuant to Arkansas Code § 23-18-606.

3. (c) If the net-metering customer has any accumulated net-metering surplus or net excess generation during the applicable billing period:

   1. (1) The net-metering surplus or net excess generation shall first be credited to the net-metering customer’s generation meter;
   2. (2) After application of subdivision (c)(1) of this section and upon request of the net-metering customer pursuant to subsection (d) of this section, any remaining net-metering surplus or net excess generation shall be credited to one (1) or more of the net-metering customer’s additional meters in the rank order provided by the net-metering customer; and

   3. (3)

      1. (A) The net-metering surplus or net excess generation shall be credited as described in subdivisions (c)(1) and (2) of this section during subsequent billing periods.
      2. (B) The amount of net excess generation credits remaining in a net-metering customer’s account at the close of a billing period:

4. (i) Shall not expire; and

   1. (ii) Shall be carried forward to subsequent billing periods indefinitely.

      1. (C) For net excess generation credits older than twenty-four (24) months, a legacy or legacy-transitional net-metering customer may elect to have the electric utility purchase the net excess generation credits in the legacy or legacy-transitional net-metering customer’s account at the electric utility’s avoided cost if the sum to be paid to the legacy or legacy-transitional net-metering customer is at least one hundred dollars ($100).

      2. (D) An electric utility shall purchase at the electric utility’s avoided cost any net excess generation or net-metering surplus credits remaining in a net-metering customer’s account when the net-metering customer:

         1. (i) Ceases to be a customer of the electric utility;
         2. (ii) Ceases to operate the net-metering facility; or
         3. (iii) Transfers the net-metering facility to another person.
         4. (d) Upon request from a net-metering customer, an electric utility must apply net-metering surplus or net excess generation to the net-metering customer’s additional meters provided that:
   2. (1) The net-metering customer gives at least thirty (30) days’ notice to the electric utility of its request to apply net-metering surplus or net excess generation to the additional meter or meters;
   3. (2) The additional meter or meters must be identified at the time of the request;

   4. (3)

      1. (A) In the event that more than one (1) of the net-metering customer’s additional meters is identified, the net-metering customer must designate the rank order for the additional meters to which net-metering surplus or net excess generation is to be applied.
      2. (B) The net-metering customer cannot designate the rank order more than once during the annual billing cycle;
   5. (4) At the time an electric utility processes a request for applying any remaining net-metering surplus or net excess generation as a credit to one (1) or more of a net-metering customer’s meters in the rank order provided by the net-metering customer pursuant to Arkansas Code § 23-18-604(d), the electric utility shall synchronize the billing cycles of each additional meter with the net-metering customer’s generation meter; and
   6. (5) Billing and crediting for the net-metering facilities and additional meters of non-legacy net-metering customers shall comply with the requirements of Arkansas Code § 23-18-604(d)(2)(A).
5. (e) Any renewable energy credit may be retained, retired, or sold for the sole benefit of the net-metering customer.

Codification Notes: This section was promulgated as Rule 2.04 of the Net-metering Rules prior to codification into the Code of Arkansas Rules.