AR HB1633

Allows electric utilities subject to Arkansas Public Service Commission jurisdiction to enter into power purchase agreements with electricity generators for the sale of electricity, generation capacity, or ancillary products.

Prohibits utilities from entering agreements exceeding 5 years or recovering costs in rates unless the Commission finds the agreement is reasonable, prudent, provides customer savings, required by public convenience and necessity, and serves the public interest.

Authorizes the Commission to approve an additional sum to the utility as compensation for unique agreement characteristics, provided the generator is not an affiliate of the utility and retail customers receive no less than 75% of any savings.

Allows the utility to recover the approved additional sum over the entire term of the power purchase agreement as long as electricity delivery continues under the agreement's terms.

Exempts electric cooperative corporations established under Arkansas law from these provisions.