1. (a) Subject matter.

   1. (1) Public utilities incorporated under the laws of this state must file a formal application for authority to issue stocks, stock certificates, bonds, notes, or other evidences of indebtedness payable at periods of more than thirty-six (36) months after the date of issuance thereof.

   2. (2)

      1. (A) Public utilities incorporated under the laws of any state or foreign country must file a formal application for authority to create liens upon properties in this state (Arkansas Code §§ 23-3-103 – 23-3-107).
      2. (B) Exception. This section does not apply to telecommunications providers unless such provider is a nonelecting ILEC.

2. (b) Content.

   1. (1) When application is made by any utility for an order authorizing the issue of stocks, stock certificates, bonds, notes, or other evidences of indebtedness payable at periods of more than thirty-six (36) months after the date thereof under the provisions of Arkansas Code §§ 23-3-103 – 23-3-107, or to create a lien on property in this state, the application shall include in addition to any other requirements of any statute, order, or rule:

      1. (A) A general description of the utility's property with:

3. (i) A statement of the original cost of the same; or

   1. (ii) The book value thereof if the original cost cannot be reasonably determined;

      1. (B) The amount and kind of stock, if any, that the utility desires to issue, and, if preferred, the nature and extent of the preference and the amount of bonds, notes, or other evidences of indebtedness, if any, that the public utility desires to issue, with:

         1. (i) Terms;
         2. (ii) Anticipated rate of interest; and
         3. (iii) Whether and how to be secured;

      2. (C) A list of any liens or other evidence of indebtedness upon property of the utility, giving the:

         1. (i) Name of the lienholder or other debtholder; and
         2. (ii) Amount of indebtedness actually secured;
      3. (D) The use to which the capital to be secured by the issue of such stock, stock certificates, bonds, notes, or other evidences of indebtedness is to be put;
      4. (E) The anticipated interest rate or dividend rate for any debt financing or preferred stock with a description of the basis for the estimation;
      5. (F) The estimated costs of the issue and sale of each proposed financing with a description of the basis for the estimation;
      6. (G) A representation that the aggregate amount of stocks, stock certificates, notes, bonds, or other evidences of indebtedness including the proposed financings will not exceed the fair value of properties of the issuer and the estimated cost of the issuance and sale of the issues, with a description of the basis for such representation;

      7. (H) Identification by docket number and order number of:

         1. (i) Any current authorizations to issue securities;
         2. (ii) The amount of any such authorization that has not been issued; and
         3. (iii) The expiration date of such authorization;

      8. (I) Such other facts and information that may be:

         1. (i) Material or pertinent for consideration by the Arkansas Public Service Commission; or
         2. (ii) Required by order of the Arkansas Public Service Commission;
      9. (J) The beginning and end time frame for which such authorization is sought; and
      10. (K) The date by which an order is required, and if filed less than ninety (90) days prior to such requested date, an explanation of the basis for the need for an expedited order.

   2. (2)

      1. (A) When application is made by any public utility pursuant to this part that concurrently therewith seeks an appropriate order from the United States Securities and Exchange Commission or other federal agency, said utility should identify by proceeding or other appropriate reference the approval sought or received.
      2. (B) Said utility may file its petition, reciting the foregoing and submitting therewith copies of all such documents and exhibits on file or to be filed with the United States Securities and Exchange Commission or other federal agency in satisfaction of one (1) or more of the respective requirements of subdivision (b)(1) of this section.

      3. (C) Said documents and exhibits may be filed either:

         1. (i) At the time the petition is filed with the Arkansas Public Service Commission; or
         2. (ii) Simultaneously with its filing with the:
4. (a) (a) United States Securities and Exchange Commission; or

5. (b) (b) Other federal agency.

   1. (D) However, the Arkansas Public Service Commission upon its own motion may require the applicant utility to also submit any or all of the information required by subdivision (b)(1) of this section in addition to such other information as the Arkansas Public Service Commission deems pertinent.

   2. (3) The following exhibits shall be filed with the application:

      1. (A) Copy of deeds of trust, mortgages, or other security instruments if any, unless the same have already been filed with the Arkansas Public Service Commission in which case they may be made an exhibit by reference; and

      2. (B) Financial statements (balance sheet and income statement) per books and pro forma showing separately the effect of each proposed financing, including:

         1. (i) Any anticipated retirements, refunding, or refinancing of current issues; and
         2. (ii) The cost of issuance.
         3. (c) Reports. The Arkansas Public Service Commission may require public utilities to account for the disposition of the proceeds or to report the details of financings authorized under this section.

Codification Notes: This section was promulgated as Rule 10.01 of the Rules of Practice and Procedure prior to codification in the Code of Arkansas Rules.