AR SB727

Allows public utilities to file interim rate surcharges no more than once every six (6) months to recover investments and expenses required by legislative or administrative regulations relating to public health, safety, or environmental protection.

Establishes specific criteria for interim surcharge eligibility, including that costs must not currently be recovered in existing rates, must be reasonably incurred, and must be mandatory, a condition of continued operation, or previously approved by the commission.

Excludes increases in employment compensation or benefits resulting from legislative or regulatory action from interim surcharge recovery.

Permits utilities to recover allowance for funds used during construction incurred during construction of required compliance facilities through interim surcharges, provided such costs have not already been capitalized or included in current rates.

Declares an emergency effective upon governor approval, citing a recent Arkansas Court of Appeals decision that impaired utility recovery of compliance-related investments and expenses through interim rate surcharges.