1. (a) If an electric utility elects to use the rate structure outlined in Arkansas Code § 23-18-606(a)(1), the electric utility shall file any needed revisions to its net-metering tariff on or before February 1 of each calendar year, to become effective on March 1 of the same year, updating the avoided cost to reflect the twelve-month average for the prior calendar year of the applicable Locational Marginal Price associated with the electric utility’s load zone in the Midcontinent Independent System Operator (MISO) or Southwest Power Pool (SPP) Independent System Operator Market.

2. (b)

   1. (1) The electric utility shall use the historic hourly average real-time Locational Marginal Price for the prior calendar year for the purpose of calculating the annual avoided-cost rate updates in its net-metering tariff.
   2. (2) Any electric utility whose load zone encompasses both MISO and SPP shall use a blended rate to calculate the avoided cost.
   3. (3) A distribution cooperative shall use the avoided-cost rate based on the load zones applicable to the wholesale power it purchases as calculated by Arkansas Electric Cooperative Corporation.

Codification Notes: This section was promulgated as Rule 2.08 of the Net-metering Rules prior to codification into the Code of Arkansas Rules.