AR SB145

Adds new definition of "municipal utility" to include utility systems owned or operated by municipalities, nonprofit corporations, and consolidated utility districts under specified state laws.

Establishes that rates for net-metering customers must recover the electric utility's entire cost of service, including quantifiable additional costs and net of quantifiable benefits, as determined by the commission.

Allows commissions to require separate metering and billing of electricity supplied to and generated by net-metering customers, with credit based on avoided cost plus up to 40% additional sum upon demonstration of quantifiable benefits.

Permits generating capacity limits to exceed 300 kW (up to 20,000 kW) if distribution system, environmental, or public policy benefits are demonstrated or if increased capacity would help attract businesses to Arkansas.

Creates new section 23-18-605 authorizing municipal utilities to establish their own interconnection procedures and rates for net-metering facilities, with capacity limits of 25 kW (residential) or 300 kW (nonresidential) unless necessary for reliable operations or public safety.