Arkansas Code
Subchapter 5 - Utilities — Special Surcharges
§ 23-4-501. Authority to recover costs through interim rate schedule

(a)
(1) Upon a proper filing with the Arkansas Public Service Commission, a public utility shall be permitted to recover in a prompt and timely manner all investments and expenses through an interim surcharge, if the investments or expenses:
(A) Are not currently being recovered in existing rates;
(B) Are reasonably incurred;
(C) Were not reasonably known and measurable at a time that allowed for a reasonable opportunity for the inclusion and consideration of the investments or expenses for recovery in the public utility's last general rate case;
(D) Are incurred by the public utility to comply with legislative or administrative rules or requirements;
(E) Relate to the protection of the public health, safety, or the environment;
(F) Cannot otherwise be recovered in a prompt and timely manner; and
(G) Are any of the following:
(i) Mandatory;
(ii) A condition of continued operation of a utility facility; or
(iii) Previously approved by the commission.

(2) The interim surcharge shall be effective until the implementation of new rate schedules in connection with the next general rate filing of the public utility in which such investments or expenses can be included in the public utility's base rate schedule.
(3) However, the costs to be recovered through such an interim surcharge described in subdivisions (a)(1) and (2) of this section shall not include increases in the cost for employment compensation or benefits as a result of legislative or regulatory action.

(b)
(1) A public utility shall be permitted to recover, through an interim surcharge, the allowance for funds used during construction that would otherwise be accrued and capitalized that is incurred during the construction of facilities and equipment required for compliance with such legislative or administrative rules or requirements, provided that any such allowance for funds used during construction has not been capitalized or otherwise included in the utility's currently effective rates.
(2) The public utility shall not capitalize or otherwise recover through rates any allowance for funds used during construction incurred in connection with investments described in subdivision (b)(1) of this section when the associated financing costs are included in an interim surcharge.