AR HB1386

Allows nonresidential business consumers in manufacturing, wholesale trade, and retail trade sectors (NAICS 31-33) to opt out of utility-sponsored energy conservation programs by providing notice to the Arkansas Public Service Commission by September 15 each year.

Requires qualifying businesses to meet one of two energy consumption thresholds: either 1 megawatt (MW) peak electrical demand or 70,000 MMBtu annual natural gas usage at a single facility, or aggregate thresholds across multiple facilities (200 kW per location aggregating to 1 MW, or 14,000 MMBtu per location aggregating to 70,000 MMBtu).

Exempts only businesses that have not accepted utility-sponsored conservation installation, financing, or rebates in the preceding 5 years and must submit a sworn affidavit demonstrating either implementation of equal energy savings or exhaustion of cost-effective conservation opportunities.

Prevents utilities from billing exempted businesses for energy conservation program costs and prohibits exempted businesses from participating in utility conservation programs, with exemptions remaining permanent until voluntarily withdrawn.

Declares an emergency effective July 1, 2013, citing rising business operation costs, high unemployment, and economic hardship as justification for reducing energy costs for industrial and manufacturing businesses.