§ 23-3-604 - Rates and tariffs.
23-3-604. Rates and tariffs.
(a) (1) Once a certificated extension is placed into service and is used and useful, the gas utility may collect the rates and tariffs which have been previously approved by the Arkansas Public Service Commission and which reflect the apportionment of recovery of the cost of the excess expenditures between the surcharge and cost - of - service recovery methods as ordered by the commission. The tariff and rate filing made at the time of the certificate application shall include estimated excess expenditures upon which the commission may grant the certificate.
(2) The commission may subsequently modify the previously approved rates and tariffs in any reasonable manner if the actual total costs and excess expenditures differ significantly from the estimated total costs and excess expenditures.
(3) In the event that actual total costs and excess expenditures significantly exceed the estimated costs and excess expenditures, and the difference is caused by imprudence or other unsatisfactory causes, the commission may disallow recovery of a portion of the actual excess expenditures in the approved rates.
(b) The surcharge shall be recovered only from those customers or accounts that receive service as a direct result of the certificated extension. The surcharge shall recover its proportion of the capitalized excess expenditures, plus carrying costs. Surcharged amounts shall be treated for ratemaking purposes as customer contributions in aid of construction and shall not be added to the rate base upon which a return is earned.
(c) Those costs and expenses to be recovered under the cost-of-service recovery method shall be recovered in the same manner as they would had they been elements of a general rate application. Traditional cost-of-service principles shall be utilized in adjusting rates to recover the cost of excess expenditures recovered under cost-of-service recovery. Allocation of class responsibility for recovery of the cost of the excess expenditures shall be in accordance with the gas utility's most recently approved cost-of-service study or in accordance with a reasonable cost-of-service approach which the commission shall find acceptable.
(d) Amounts recoverable under the cost-of-service recovery method which remain outstanding shall be rolled into the gas utility's next general rate application. Recovery of these outstanding expenditures shall be made within the rate approved as a result of the application for the certificate and corresponding approval of rates.