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Published: 1980

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The Arkansas state constitution contains no provision dealing with public utility regulation. Title 73 of the Arkansas Statutes specifically provides for the regulation of public utilities. The Arkansas Public Service Commission is established by statute as a subagency of the Department of Commerce and is responsible for regulating electric, steam heating, and certain other kinds of utilities. The Commission consists of three members, each appointed by the governor with the approval of the Senate for a term of six years. The Commission has authority over all matters pertaining to the regulation and operation of gas companies, electric companies, and hydro-electric companies among other utilities enumerated in the statute. The role of local governments in the regulation of public utilities has been reduced by recent legislation. Municipal councils formerly had the power to regulate rate-making for investor owned utilities operating within their boundaries. However, as a result of 1977 amendments to the Public Utilities Act, ratemaking for privately owned electric, gas, telephone, and sewer utilities is now within the exclusive jurisdiction of the Public Service Commission. Public utility regulatory statutes, energy facility siting programs, and municipal franchising authority are examined to identify how they may impact on the ability of an organization, whether or not it be a regulated utility, to construct and operate an ICES.