AR SB994

Amends Arkansas Code § 23-3-601 to establish procedures for gas utilities to petition for certificates to fund natural gas extension projects in underserved rural areas, with cost recovery through surcharges or rates.

Repeals the "cost-of-service recovery" definition and modifies surcharge provisions to allow the Arkansas Public Service Commission to apportion recovery of excess expenditures between surcharge and cost-of-service recovery methods from 0-100%.

Requires gas utilities to provide detailed petition information including cost estimates, completion schedules, facility descriptions, estimated customer volumes, and surcharge rate calculations based on the utility's most recent rate determination.

Limits total annual recovery of excess expenditures to 0.5% of a gas utility's gross plant at original cost, excluding construction work in progress and certificated projects already receiving cost-of-service recovery treatment.

Establishes that surcharges are recovered only from customers directly benefiting from extensions, remain effective until the next general rate filing, and are treated as customer contributions in aid of construction.