The following words, when used in this part, shall have the following meanings unless otherwise clearly apparent from the context:

1. (1) “Appliance or equipment” means any:

   1. (A) Device, including a fixture, that consumes electric or gas energy; and
   2. (B) Ancillary device required for its operation, including computer hardware and software;

2. (2) “Consideration” means any:

   1. (A) Cash;
   2. (B) Donation;
   3. (C) Gift;
   4. (D) Allowance;
   5. (E) Rebate;
   6. (F) Bonus;
   7. (G) Merchandise, new or used;
   8. (H) Property, tangible or intangible;
   9. (I) Labor;
   10. (J) Service;
   11. (K) Conveyance;
   12. (L) Commitment;
   13. (M) Right; or
   14. (N) Other thing of value;

3. (3) “Financing” includes:

   1. (A) Acquisition of equity or debt interests;
   2. (B) Loans;
   3. (C) Guarantee of loans;
   4. (D) Advances;
   5. (E) Sale and repurchase agreements;
   6. (F) Sale and leaseback agreements;
   7. (G) Sales on open account;
   8. (H) Conditional or installment sales contracts; or
   9. (I) Other investments or extensions of credit;

4. (4) “Person” includes any:

   1. (A) Individual;
   2. (B) Group;
   3. (C) Firm;
   4. (D) Partnership;
   5. (E) Corporation;
   6. (F) Cooperative;
   7. (G) Association; or
   8. (H) Other organization;

5. (5) “Promotional practices” means any consideration offered by a public utility to any person for the purpose, express or implied, of inducing such person to select or use the service or additional service or to conserve the use of service of such or any utility, or to select or install any appliance or equipment designed to use such or any utility service, provided that the words “promotional practices”:

   1. (A) Shall include but not be limited to the following activities of a public utility:

      1. (i)

         1. (a) (a) Merchandising of appliances or equipment unless such activity is operated as a nonutility business as provided at subdivision (5)(B)(i) of this section.
         2. (b) (b) Merchandising activities that are not completely segregated from public utility activities and property shall be deemed promotional practices;
      2. (ii) The financing of the acquisition of any appliance or equipment, unless such activity is operated as a nonutility business as provided at subdivision (5)(B)(i), at a rate of interest or on terms significantly more favorable than those generally applicable to sales by nonutility dealers in such appliances or equipment;
      3. (iii) The financing of land or the construction of any building when same is not owned or otherwise possessed by the utility;
      4. (iv) The furnishing of consideration to any person for work done or to be done on property not owned or otherwise possessed by the utility;
      5. (v) The acquisition from any person of any tangible or intangible property or service for a consideration in excess of the value thereof, or the furnishing to any person of any tangible or intangible property or service for a consideration of less than the value thereof;
      6. (vi) The furnishing of consideration to any person for the sale, installation, or use of appliances or equipment;
      7. (vii) The guaranteeing of the maximum cost of electric or gas utility service;
      8. (viii) The furnishing of distribution and service facilities to any area or customer under terms and conditions different from those applicable to any other area or customer receiving the particular class of service involved;
      9. (ix) The furnishing of consideration by a utility to any person who, on behalf of the utility, performs any promotional practice as otherwise defined in this section; and
      10. (x) Special rate contracts between a utility and an individual customer; and

   2. (B) Shall not include the following activities of a public utility:

      1. (i) Merchandising or financing of appliances or equipment if such activity is operated as a nonutility business, i.e., the activities must be completely segregated from public utility activities and must meet the following requirements:

         1. (a) (a) Accounting for the activities is completely separate;
         2. (b) (b) Collection for financing is not made on the customer’s utility bill;
      2. (c) (c) Utility payment records are not used for credit approval; and
      3. (d) (d) Public utility property of activities, such as billing inserts, are not used to advertise the nonpublic utility activities;

      4. (ii) Inspections, repairs, and service:

         1. (a) (a) For the purpose of providing or restoring utility service; or
         2. (b) (b) To prevent hazardous conditions or service interruptions to a customer;
      5. (iii) Providing appliances or equipment incidental to exhibitions, demonstrations, tests, or experiments of a reasonable duration;
      6. (iv) Providing appliances, equipment, or instructional services to an educational institution for the purpose of instructing students in the use or repair of such appliances or equipment;
      7. (v) Technical, informational, or educational assistance offered to persons on the use of energy furnished by a public utility or on the use or maintenance of appliances or equipment; and
      8. (vi) Rates reflecting variations in the utility’s actual cost of providing service, including but not limited to time-of-use, summer/winter differential, and interruptible or curtailable rates;
6. (6) “Public utility” or “utility” means any person engaged in the production, storage, distribution, sale, delivery, or furnishing of electricity or gas subject to the jurisdiction of the Arkansas Public Service Commission; and
7. (7) “Tests” means the Participant Test, the Ratepayer Impact Measure Test, the Total Resource Cost Test, and the Utility Cost Test as summarized in the appendix to this part.

Codification Notes: This section was promulgated as Section 2 of the Promotional Practices of Electric and Gas Public Utilities prior to codification in the Code of Arkansas Rules.