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Arkansas Certificate of Public Convenience and Necessity (8-AR-c)

In Arkansas, a developer may need a Certificate of Public Convenience and Necessity from the Arkansas Public Service Commission (PSC) to construct or operate any new equipment or a facility supplying a public service. Ark. Code Ann. §23-3-201(a) (2017); Arkansas PSC Rules of Practice and Procedure, Rule 6.01. A public service, in part, includes any product or commodity furnished and the plant, equipment…and facilities employed by any public utility…” Ark. Code Ann. §23-1-1(12) (2017). A public utility is defined, in part, as “persons and corporations… owning or operating equipment or facilities for producing, generating, transmitting, delivering or furnishing electricity for the production of light, heat, or power to or for the public for compensation.” Ark. Code Ann. §23-1-101(9) (2017). The PSC has the authority to issue a Certificate of Public Convenience and Necessity (Certificate) pursuant to Ark. Code Ann. §23-3-201 (2017) and Arkansas Public Service Commission Rules of Practice and Procedure .


A developer may also need a Certificate of Environmental Compatibility and Public Need from the Arkansas Public Service Commission before constructing a major utility facility. A major utility facility is defined, in part, as an electric generation plant and associated transportation facilities capable of operating at a capacity of fifty megawatts (50 MW) or more. Ark. Code Ann. §23-18-503(6) (1973).

For more information, see:

Certificate Environmental Compatibility and Public Need:
8-AR-d


Certificate of Public Convenience and Necessity Process

8-AR-c.1 — Provide Notice of Application

A developer must provide notice of the Certificate of Public Convenience and Necessity Application (Application) to the PSC. Ark. Code Ann. §23-3-203(a) (2017). Additionally, the developer must give notice of the Application, to any land owner where the project may cross, at least 10 days before filing the Application. Arkansas PSC Rules of Practice and Procedure, Rule 6.01. The notice must include:

  • The date the Application will be filed;
  • The Application Docket number (if available);
  • The name, address, e-mail address and phone number of the Secretary of the PSC;
  • A description of the facilities to be constructed on the owner’s land; and
  • A notice explaining a petition to intervene must be filed with the PSC within 30 days of the Application date.

Arkansas PSC Rules of Practice and Procedure, Rule 6.03

8-AR-c.2 — Certificate of Public Convenience and Necessity Application

A developer must submit an Application to the PSC for new utility construction and authorization to operate as a utility. Ark. Code Ann. §23-3-201(a) (2017). The Application must, at minimum, include:

  • A statement for why the new construction is required by public convenience and necessity;
  • A description of the proposed location;
  • Maps of the proposed location;
  • An estimate of the total project cost;
  • A description of how the project is being financed; and
  • A statement showing land owners were notified of the Application.

Arkansas PSC Rules of Practice and Procedure, Rule 6.07(a)

The Application to operate as an electric utility must include:

  • The name and address of the utility owner;
  • Copies of the articles of incorporation (if applicable);
  • Maps of the proposed area;
  • Information about the developers’ financial capacity to provide service;
  • The initial tariff or price list for services to be offered; and
  • Other information requested by the PSC.

Arkansas PSC Rules of Practice and Procedure, Rule 6.07(d).

8-AR-c.3 to 8-AR-c.4 — Review Application Materials for Completeness

The PSC must review the Application for technical and administrative completeness.

8-AR-c.5 — Hold Public Hearing

The PSC must hold a hearing. Ark. Code Ann. §23-3-205(a)(1) (2017).

8-AR-c.6 to 8-AR-c.7 — Assess Application Materials for Approval

The PSC will not issue a Certificate for any person or corporation that:

  • Is not a public utility;
  • Primarily transmits electricity; and
  • Has not been designated to construct an electric transmission facility by the regional transmission organization.

Ark. Code Ann. §23-3-205(b) (2017).

8-AR-c.8 — Certificate of Public Convenience and Necessity

The developer must comply with any restrictions or conditions on the Certificate of Public Convenience. The developer must begin construction within four months of the Certificate authorization. Arkansas PSC Rules of Practice and Procedure, Rule 6.05.

8-AR-c.9 — Appeal Decision (Optional)

An aggrieved party may request a rehearing before the PSC within 30 days of the decision. Ark. Code Ann. §23-2-422(a) (1973). An aggrieved party must apply to the PSC for a rehearing before appealing to the Arkansas Court of Appeals for review. Ark. Code Ann. §23-2-423(a) (1973).


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