1. (a)

   1. (1) In light of events that have occurred subsequent to the issuance of the 1971 Rules and Regulations Governing Promotional Practices of Electric and Gas Public Utilities (“1971 rules”), competition among electric and gas utilities must now exist in an era of energy conservation and integrated resource planning.

   2. (2) As these utilities seek to maximize the use of existing generating plants and reserves, to use wisely the natural resources that provide their fuel, and, thus, to encourage their customers to conserve energy where possible, the Arkansas Public Service Commission has determined that promotional practices must:

      1. (A) Benefit ratepayers in the aggregate; or
      2. (B) Not be engaged in at all.

2. (b)

   1. (1) The promotion of goods or services offered the public is an inherent and important part of the economy of the state and nation.

   2. (2) However, any electric and gas utilities desiring to engage in promotional practices have the burden of proving that the proposed practices:

      1. (A) Are not unduly discriminatory or anticompetitive; and
      2. (B) Are in the public interest because they serve the purposes of energy conservation pursuant to the authority granted the Arkansas Public Service Commission in the Energy Conservation Endorsement Act of 1977, Arkansas Code § 23-3-401 et seq.
   3. (3) The laws of this state require the rates of a public utility to be just and reasonable and in conformity with the rules and orders of the Arkansas Public Service Commission.
   4. (4) The laws prohibit a public utility from directly or indirectly demanding or receiving from anyone a greater or lesser rate for service than that specified in its tariff.

   5. (5) The laws prohibit, with respect to rates and services:

      1. (A) The granting of unreasonable preferences or advantages to anyone; or
      2. (B) Subjecting anyone to unreasonable prejudice or disadvantage.
   6. (6) The laws grant the Arkansas Public Service Commission the authority to encourage energy conservation.
   7. (7) Accordingly, the Arkansas Public Service Commission declares that the adoption and enforcement of this part is in the public interest because it seeks to advance the welfare of all consumers by prohibiting all promotional practices unless approval by the Arkansas Public Service Commission has been granted after investigation and hearing.

Codification Notes: This section was promulgated as Section 1 of the Promotional Practices of Electric and Gas Public Utilities prior to codification in the Code of Arkansas Rules.