Arkansas Code
Subchapter 6 - Gas Utilities — Extension Projects
§ 23-3-602. Definitions

As used in this subchapter:
(1) “Certificate of extension project” or “certificate” means the Arkansas Public Service Commission order authorizing a gas utility seeking the order to undertake an extension project. The certificate shall be issued contemporaneously with the commission order approving the imposition of rates and surcharges sufficient to recover the excess expenditures arising out of those extension projects that have been granted certificates and completed pursuant to this subchapter;
(2) “Commission” means the Arkansas Public Service Commission;
(3) “Excess expenditures” means the difference between:
(A) Expenditures made by a gas utility for extensions of service to areas not served by a gas utility;
(B) The sum of the investment allowable under a gas utility's extension policy, plus amounts, if any initially available from other applicable sources, which include without limitation funds from:
(i) The Arkansas Economic Development Council or its successor;
(ii) Industrial development bonds, municipal bonds, city bonds, or improvement district bonds;
(iii) Special funds which may be created by particular commission orders for individual gas utilities in rate cases or other proceedings; and
(iv) Customer-provided contributions in aid of construction;

(4) “Extension project” means any extension proposed by a gas utility that is intended to serve areas of Arkansas not served by any gas utility or within the range of the extension policy of any gas utility, which will result in excess expenditures if constructed, and for which the gas utility seeks authorization from the commission to begin, together with the authorization to change its rates and surcharges to recover the excess expenditures as provided in this subchapter;
(5) “Gas utility” means any natural gas public utility jurisdictional to the commission; and
(6)
(A) “Surcharge” means a charge that the commission may authorize a gas utility to impose on its customers to recover, at the time the gas utility plant goes into service, the excess expenditures arising out of the extension projects that have been granted certificates.
(B) The amount of the surcharge to be added to the gas utility's rate under subdivision (6)(A) of this section shall be calculated under traditional cost-of-service principles so as to produce the annual revenues equal to the additional annualized revenue requirement to which the gas utility would be entitled had the excess expenditures been included in the gas utility's most recent rate determination by the commission.