SB265 Summary

• Amends Arkansas Code Title 23, Chapter 3, Subchapter 6 to establish procedures for natural gas utilities to petition the Arkansas Public Service Commission for certificates to fund extension projects serving unserved areas.

• Requires gas utilities to submit detailed petitions including project cost estimates, completion schedules, customer projections, and descriptions of economic benefits to existing ratepayers.

• Authorizes the commission to approve rates and surcharges to recover "excess expenditures" (costs exceeding standard extension policies) through a combination of surcharges on direct beneficiaries and cost-of-service recovery from all customers.

• Limits annual recovery of excess expenditures through non-rate-case proceedings to 0.5% of the gas utility's gross plant at original cost, regardless of the number of certificates granted.

• Adds a requirement that agreements with the Arkansas Economic Development Commission include provisions to recover surcharge-funded extension costs from project developers who fail to take natural gas service and refund amounts to ratepayers.