§ 23-4-205 - Refunds.
               	 		
23-4-205.    Refunds.
    (a)  The  Arkansas Public Service Commission is hereby empowered, following  notice and hearing, to order any public utility subject to its  jurisdiction to make refunds. The refunds shall be made in the manner  and to the extent determined just and reasonable by the commission.
(b)  The authority of the commission to make refunds shall include, but is not limited to, the following circumstances:
      (1)  When  a utility implements rates under bond, and the rates approved in the  final order of the commission are less than the bonded rates;
      (2)  When a utility has charged its ratepayers an amount in excess of the utility's approved tariffs;
      (3)  When a utility imposes on ratepayers any charge prohibited by, or in excess of, any Arkansas statute;
      (4)  When a utility charges more than the lawful rate of interest; and
      (5)  When  a utility has collected revenues exceeding those amounts authorized by  any contract approved by the commission pursuant to    23-3-117.
(c)  When  the commission determines that refunds are due under this section, the  commission may authorize the utility to make a refund in one (1) lump  sum, or may authorize the utility to prorate the refunds over the period  of time over which the amount to be refunded had accrued, or some  intermediate period of time as the commission deems appropriate. The  commission may require that the refund be made by cash or check, or  through customers' account credits. However, any refund of ten dollars  ($10.00) or less shall be by billing credit only. All refunds, of  whatever amount, to customers who cannot be located shall be made  pursuant to subsection (e) of this section. Former customers who can be  located shall be paid by cash or check.
(d)  The  commission may order that refunds due under this section be made with  interest computed at a rate not to exceed the maximum allowed by  Arkansas law.
(e)  When a refund is due a customer and the utility cannot, after diligent effort, locate the customer, the utility shall:
      (1)  Make the refunds available to the customer for a period of three (3) years from the date the refund was ordered; and
      (2)  Apply those funds which are not claimed after three (3) years as a credit against bad-debt expense of the utility.
(f)  Nothing  in this section shall be construed as allowing retroactive ratemaking  or otherwise providing for refunds of rates collected pursuant to  previous orders of the commission, except when rates have been placed in  effect under bond, subject to refund.