1. (a) This section governs the process by which a Class B or lower water or sewer company may become subject to regulation as a public utility under Arkansas Code § 23-1-101(9)(G).

2. (b) Petition process. A Class B or lower water or sewer company otherwise exempt from regulation as a public utility shall become subject to the Arkansas Public Service Commission's jurisdiction upon the Arkansas Public Service Commission’s order approving either of the following petitions:

   1. (1) By the company. The petition shall include, but not be limited to, the following information:

      1. (A) A request that the Arkansas Public Service Commission:

3. (i) Declare the company to be a public utility; and

   1. (ii) Issue a CCN to the company;

      1. (B)

         1. (i) A description of the facilities being operated, under construction, or proposed to be constructed for the purpose of providing water or sewer services.
         2. (ii) Such description shall include information pertaining to the:
4. (a) (a) Size, capacity, and location of the facilities including a map of the service area; and

5. (b) (b) Customers served or to be served by those facilities;

   1. (C) A description of the current business organization, ownership, and management of the company including an identification (i.e., name, address, telephone number, and electronic mail address) of:

      1. (i) The company's officers; and

         1. (ii) Those persons responsible for supervising the provision of water or sewer services;

      2. (D)

         1. (i) A description of any contracts or agreements for the construction, purchase, lease, or operation of any facilities providing water or sewer service.
         2. (ii) Such description shall identify any affiliation, if any, between the parties to such contracts or agreements;
      3. (E) A schedule of the company's rates and charges for its water or sewer service as of the date of the filing of the petition and an explanation of those rates and charges;
      4. (F) An income and expense statement for the previous fiscal year's water or sewer operations and a statement of the revenues, fixed charges, and operating expenses estimated for the current fiscal year's water or sewer operations; and
      5. (G) A statement that, as of the filing of the petition hereunder, the company has notified each of its water or sewer customers of the company's filing hereunder by first-class mail properly addressed with charges prepaid; and

   2. (2) By a majority of the metered customers.

      1. (A) The petition shall include but not be limited to the following information:

         1. (i) A general description of the company, including:
6. (a) (a) The location of its business office;

7. (b) (b) An identification of its management; and

   1. (c) (c) A description of its service area and customer base;

      1. (ii) A request that the company be made subject to the Arkansas Public Service Commission’s jurisdiction supported by the attachment of completed petitions that include the names, addresses, and signatures of all petitioning customers; and

         1. (iii) If the company is a water company, a statement setting forth the basis for the customers' belief that the water company's combined annual operating revenues exceed the threshold set by Arkansas Code § 23-1-101 for such companies.

      2. (B) The company shall, upon request of the Arkansas Public Service Commission or the staff, provide a list of metered customers.

         1. (c) Subsequent requirements. After hearing and upon finding that a Class B or lower water or sewer company is subject to jurisdiction under this subpart, the Arkansas Public Service Commission shall, as appropriate:
   2. (1) If the petition was filed by customers, order the company to file the information required under subdivisions (b)(1)(B) – (F) of this section;
   3. (2) Prescribe any other terms and conditions that must be satisfied before the issuance of a permanent CCN;
   4. (3) Issue an interim or permanent CCN to the company, as appropriate;
   5. (4) Establish interim rates and charges, subject to refund, for the company's services;
   6. (5) Order the company to give notice of its intention to file a General Rate Change Application; and
   7. (6) Order the company to file an application for a General Rate Change Application pursuant to Subpart 8 of this part.

Codification Notes: This section was promulgated as Rule 6.11 of the Rules of Practice and Procedure prior to codification in the Code of Arkansas Rules. "CCN" means a certificate of public convenience and necessity.