1. (a)

   1. (1) In the Energy Conservation Endorsement Act of 1977, Arkansas Code § 23-3-401 et seq., the General Assembly recognized that “enormous amounts of energy are wasted by consumers of all classes and economic levels due to inadequate insulation of buildings and other inefficiencies in the use of energy.”
   2. (2) The Energy Conservation Endorsement Act of 1977 broadly defines “energy conservation programs and measures,” and states that “energy conservation programs and measures” are broadly defined and that “[i]t shall be considered a proper and essential function of public utilities regulated by the Arkansas Public Service Commission to engage in energy conservation programs, projects, and practices which conserve, as well as distribute, electrical energy and supplies of natural gas, oil, and other fuels.”

2. (b)

   1. (1) Furthermore, the Energy Conservation Endorsement Act of 1977 provides the Arkansas Public Service Commission with the authority to “propose, develop, solicit, approve, require, implement, and monitor” energy efficiency programs “by utility companies” if the Arkansas Public Service Commission finds that such programs and measures “will be beneficial to the ratepayers of such public utilities and to the utilities themselves.”
   2. (2) “At the time any such programs or measures are approved and ordered into effect” by the Arkansas Public Service Commission, the Energy Conservation Endorsement Act of 1977 requires that the affected utility also “be allowed to increase its rates or charges as necessary to recover any costs incurred by the public utility company as a result of its engaging in any such program or measure.”

3. (c)

   1. (1) Due to the current level and expected increases in energy prices for both infrastructure investment and commodity purchases, along with the minimal level of energy efficiency programs in Arkansas, Arkansas Public Service Commission action regarding energy efficiency is necessary.
   2. (2) Consequently, the Arkansas Public Service Commission has developed this part.
   3. (3) This part applies to the provision of both electricity and natural gas service subject to the jurisdiction of the Arkansas Public Service Commission.

Codification Notes: This section was promulgated as Section 1 of the Rules for Conservation and Energy Efficiency Programs prior to codification into the Code of Arkansas Rules. This section, as promulgated prior to codification into the Code of Arkansas Rules, contained footnotes to the following: The footnote to 23 CAR § 461-101(a)(1) cited "1 Ark. Code Ann. §§23-3-402." The footnote to 23 CAR § 461-101(a)(2) immediately following the quoted phrase "energy conservation programs and measures," cited "2 Ark. Code Ann. §§23-3-403." The footnote to 23 CAR § 461-101(a)(2) immediately following the quoted phrase "[i]t shall be considered a proper and essential function of public utilities regulated by the Arkansas Public Service Commission to engage in energy conservation programs, projects, and practices which conserve, as well as distribute, electrical energy and supplies of natural gas, oil, and other fuels." cited "3 Ark. Code Ann. §§23-3-404." The footnote to 23 CAR § 461-101(b)(1) immediately following the quoted phrase "will be beneficial to the ratepayers of such public utilities and to the utilities themselves." cited "4 Ark. Code Ann. §§23-3-405(a)(1)-(2)." The footnote to 23 CAR § 461-101(b)(2) immediately following the quoted phrase "be allowed to increase its rates or charges as necessary to recover any costs incurred by the public utility company as a result of its engaging in any such program or measure." cited "5 Ark. Code Ann. §§23-3-405(a)(3)."