1. (a)

   1. (1) A net-metering customer may request that the electric utility conduct a facilities study for the purpose of determining any applicable costs of constructing electric utility facilities necessary to mitigate any potential adverse system impacts and interconnect a net-metering facility pursuant to Arkansas Code § 23-18-604(c)(11)(A)(ii).
   2. (2) The facilities study request should be made in writing but does not have to be made on any particular form unless the electric utility has an approved request form approved as part of its net-metering tariff.

2. (b)

   1. (1) The facilities study shall specify and estimate the cost of the equipment, engineering, procurement, construction work including protection, and any additional requirements needed to implement system upgrades and interconnection facilities necessary to safely interconnect a net-metering facility to the electric utility’s system pursuant to Arkansas Code § 23-18-604(c)(9)(B)(i) and (ii).
   2. (2) The Facilities Agreement shall reflect that estimate as part of its terms when presented to the net-metering customer.

3. (c)

   1. (1) An electric utility may charge a net-metering customer a deposit for each facilities study to recover estimated interconnection study costs pursuant to Arkansas Code § 23-18-604(c)(9)(B), as filed in its standard net-metering tariff.

   2. (2) Any portion of the deposit not actually incurred by the electric utility as a result of the study shall be:

      1. (A) Promptly returned to the net-metering customer; or
      2. (B) Credited towards the facility costs established by the Facilities Agreement for the net-metering facility.
4. (d) Each electric utility shall file with its net-metering tariff for Arkansas Public Service Commission approval its standard Facilities Agreement.
5. (e) Following the completion of a facilities study, if a net-metering customer elects to proceed with interconnection, the net-metering customer shall execute a standard Facilities Agreement in the form filed with the electric utility’s net-metering tariff and approved by the Arkansas Public Service Commission.
6. (f) The Facilities Agreement shall specify the net-metering customer’s appropriate portion of the estimated costs required to provide interconnection service to the net-metering facility pursuant to Arkansas Code § 23-18-604(c)(9)(B), including the net-metering customer’s appropriate portion of any costs of constructing the electric utility facilities necessary to interconnect a net-metering facility, as determined by the facilities study.

7. (g) Deadlines for electric utilities.

   1. (1) An electric utility shall use reasonable efforts to complete a facilities study within one hundred twenty (120) days.

   2. (2) If a facilities study will take more than one hundred twenty (120) days, an electric utility shall:

      1. (A) Notify the customer in writing that the review cannot be completed in one hundred twenty (120) days; and
      2. (B) Provide an alternate schedule.
   3. (3) An electric utility shall not unreasonably delay providing the results of a facilities study and corresponding Facilities Agreement.

8. (h)

   1. (1) In the event that an electric utility is not able to provide final interconnection costs within the deadlines outlined in subsection (g) of this section, the electric utility shall provide a good-faith estimate of the appropriate portion of the costs and associated expenses required to provide service to the net-metering customer and enable the net-metering customer’s use of the electric utility’s facilities, including any applicable costs of constructing the electric utility facilities necessary to interconnect a net-metering facility pursuant to Arkansas Code § 23-18-604(c)(11)(A)(ii).
   2. (2) If the net-metering customer and electric utility proceed with executing the Facilities Agreement based on a good-faith estimate, the electric utility shall credit or charge the net-metering customer for any difference between the estimate and actual costs once the final appropriate costs are determined.

Codification Notes: This section was promulgated as Rule 3.04 of the Net-metering Rules prior to codification into the Code of Arkansas Rules.