§ 23-3-605 - Conditions, limitations on grant of certificates.
23-3-605. Conditions, limitations on grant of certificates.
Certificates shall be granted under this subchapter pursuant to the following provisions and conditions:
(1) Only proposed extension projects shall be eligible for recovery of the cost of excess expenditures under this subchapter. Proposed extension projects are those for which neither actual construction activity has begun nor expenditures made, other than for planning the project, at the time the petition for the certificate is initially filed with the Arkansas Public Service Commission;
(2) Certificates shall be granted under this subchapter only for proposed extension projects which will serve areas not served by any gas utility at the time of the filing of the petition for the certificate;
(3) Certificates shall not be granted under this subchapter to recover costs incurred in replacing existing pipelines, equipment, or plants;
(4) Where the commission has granted more than one (1) certificate to a gas utility, the commission may determine prospectively the sequence in which the gas utility shall commence work on pending projects based on whatever reasonable criteria it shall develop. However, once construction has begun on any given project, the commission determination shall not serve to postpone or defer construction; and
(5) There shall be a limitation on the total annual dollar recovery of excess expenditures to be recovered pursuant to 23-3-604 through rates or surcharges resulting from proceedings other than general rate cases. The limitation shall be imposed regardless of the number of certificates granted to, or projects to be completed by, a gas utility. The limitation shall be a dollar amount which equals one half of one percent (0.5%) of the difference between the gas utility's recorded gross plant at original cost less recorded accumulated depreciation reserves. "Gross plant" shall not include construction work in progress or portions of certificated projects currently receiving cost-of-service recovery treatment.