AR HB1390

Creates the Arkansas Distributed Generation Act requiring electric utilities to develop standardized contracts for purchasing renewable energy from facilities with a maximum capacity of 20 megawatts on a first-come, first-served basis for a minimum of 20 years.

Sets statewide renewable energy generation goals of 1,200 megawatts combined capacity and 250 megawatts per calendar year, with each utility's proportionate share based on its peak demand compared to total statewide peak demand.

Requires utilities to allocate at least 20 percent of their proportionate share to residential or commercial renewable energy facilities unless the regulatory authority determines costs outweigh distribution and environmental benefits.

Allows utilities to recover reasonable and prudent costs associated with distributed generation contracts, including purchased energy costs, system upgrades, administration, and comparable costs for utility-owned renewable facilities.

Directs regulatory authorities to monitor rate impacts and limit new contracts and annual megawatt quantities as necessary to prevent undue burden on electricity customers from significant rate increases.