Arkansas Code
Subchapter 12 - Formula Rate Review Act
§ 23-4-1206. Formula rate review — Required information

(a) A formula rate review mechanism approved by the Arkansas Public Service Commission shall specify the minimum information required with each annual rate review filing.
(b) Annual formula rate review filings under an approved formula rate review mechanism shall be developed using the formula rate review test period designated by the public utility under § 23-4-1205(a)(2).
(c) Annual formula rate review filings shall be prepared consistent with the commission's order on the public utility's application for a general change in rates and charges.
(d) Any costs disallowed by the commission in its order on the public utility's application for a general change in rates and charges shall not be eligible for recovery under a formula rate review mechanism.
(e)
(1) If a formula rate review test period utilizes projected data under § 23-4-406 or a projected year, rate changes under § 23-4-1207 shall include an adjustment to net any differences between the prior formula rate review test period change in revenue and the actual historical year change in revenue for that same year.
(2) A public utility shall report any differences between the prior formula rate review test period change in revenue and the historical year change in revenue for the same year.
(3) Netting shall not begin until a public utility has accumulated a full twelve (12) months of a historical year to prepare a report.

(f) The public utility shall submit documentation fully supporting all calculations and adjustments as required by the rules of the commission.
(g) A public utility or any other party to the proceeding subject to the commission's rules and procedures may propose additional adjustments that are based on factors unique to the public utility.

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