ARKANSAS PUBLIC SERVICE COMMISSION UTILITIES DIVISION 1000 Center P.O. Box 400 Little Rock, Arkansas

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1 Jim von Gremp Chairman (501) Sam 1. Bratton, Jr. (501) Betty C. Dickey (501) ARKANSAS PUBLC SERVCE COMMSSON UTLTES DVSON 1000 Center P.O. Box 400 Little Rock, Arkansas ARK. r.'i.r L. ' 9HH. f.::4. O~T 8 37 PH '99 D Sandra L. Hochstetter Director (501) October 8, 1999 Ms. Sharon Priest Secretary of State State Capitol, Room 010 Little Rock, AR Re: Minimum filing requirements for the Functional Unbundling of Electric Utility Tariffs adopted by the Arkansas Public Service Commission Dear Ms. Priest: Enclosed herewith please find two copies of the referenced rules and a Statement of Financial mpact. These rules are being provided to you pursuant to Arkansas Code Annotated (Supp. 1999). Please let me know if you need anything further. Your courtesy and cooperation are appreciated. Cordially,. a AHSlSnv Enclosures Arthur H. Stuenkel Staff Attorney cc: Dave Slaton Sandra Hochstetter Valerie Boyce Gil Glover Jan Sanders

2 ARKANSAS REGSTER Transmittal Sheet r Office Sharon Priest Secretary of State State Capitol Rm. 010 of Agency Arkansas Public Service Commission 3partrnent Utilities Division ntact Person Art Stuenkel 2tutoiy Authority for Promulgating Rules (Act 15% l9 ntended Effective Date Emergency 20 Days After Filing Arkansas Code Annotated Section 2319: 99) Date Legs1 Notice Pubiished /18/99 6/21/99 & Find Date for Public Comment /27/99 5 Other 10 days after filing Filed With Legisfztive Council /23/99 Reviewed by Legislative Council.... 8/5/99 Adopted by State Agency /1/99 CERTFCATON OF AUTHORZED OFFCER Hereby Certify That The Attached Rules Were Adopted Arthur 13. Stuenkel, Staff Attorney Title October 8, 1999 Date

3 Jim von Gremp Chairman (501) Sam 1. Bratton, Jr. (501) Betty C. Dickey (501) ARKANSAS PUBLC SERVCE COMMSSON UTLTES DVSON 1000 Center P.O. Box 400 Little Rock, Arkansas Sandra L. Hochstetter Director (501) October 8, 1999 Ms. Donna K. Davis Bureau of Legislative Research Room 3 15, State Capitol Little Rock, AR Re: Minimum filing requirements for the Functional Unbundling of Electric Utility Tariffs pursuant to Act of 1999 (Arkansas Code Annotated ) Dear Ms. Davis: Enclosed herewith please find two copies of the referenced rules. The enclosed rules have been adopted by the Commission. The proposed versions of these rules were transmitted to you by letter dated June 23, Please let me know if you need anything further. AHSlSnv Enclosures Arthur H. Stuenkel StafY Attorney cc: Sandra Hochstettar Dave Slaton Valerie Boyce Gil Glover Jan Sanders

4 Jim von Gremp Chairman (501) Sam 1. Bratton, Jr. (501) Betty C. Dickey (501) ARKANSAS PUBLC SERVCE COMMSSON UTLTES DVSON 1000 Center P.O. Box 400 Little Rock, Arkansas Director (501) October 8, 1999 Documents Services Arkansas State Library 1 Capitol Mall Little Rock, AR Re: Adoption Rules by the Arkansas Public Service Commission Dear Sir or Madame: Enclosed herewith please find two copies of the Agency Certification Form and Financial mpact Statement, two copies of the Monthly Publication List, a selfaddressed stamped envelope, and fifteen copies of the Public Service Commission s newly adopted rules regarding Functional Unbundling of Electric Utility Tariffs. These documents are being provided to you in accordance with provisions of Arkansas Code Annotated fj Please filemark a copy the Agencies Certification form and Monthly Publication List and return them in the enclosed envelope. f you have any questions concerning this matter please feel free to contact me. Your courtesy and cooperation is appreciated. AHSlSnv Enclosures Arthur H. Stuenkel Staff Attorney cc: Dave Slaton Gil Glover Sandra Hochstetter Valerie Boyce Jan Sanders

5 m; OCroBER 1999, E\amcy: ARKANSAS PUBLC SERVCE amss0n n u

6 Arkansas date Librarv For Agency Certification Form Deposit Final Rules ana Ui atio ns the Ark an s as State Lib my Y. arkansas Code AnnotatedSection Statutvry.Authority for Pmrnufgating Rules: (Act. 556 of 999) 1 ', E ; Sew Amended HuleiRegulation 0 Emergency..... l a 10 Days after filing... 1 a Repealed Kuie/Heguintion j Order... i c] Other 0 Repeaied..... i 1 4 ; Emergency WueiKeguiatiun Adopted by State Agency 1, /, /9 1 a,, 1!! 1 1 / i Certification 1 1 ' 1 Kule above is proposed and wiil be replaced by final version. a Financial and/or Fiscal mpact Statement Attached of Authorized Officer re adopted in compliance with Act 424 of 1967 as amended. Titlp Arthur B. S tuenkel, 7 taf f Attorney Datp 10/8/99 59

7 PLEASE ANSWER ALL QUESTONS COMPLETELY July 28, 1995 DEPARTMENT Arkansas Public Service Commission Division Utilities Person Completing This Statement Arthur H. St uenkel, Staff At tornev. TELEPHONE NO FAX N address: Art StuenkeU3psc.state.ar.u~ FNANC AL MPACT ST ATEMENT To comply with Act 884 of 1995, please complete the following Financial mpact Statement and file with the questionnaire and proposed rules. SHORT TTLE OF THS RULE Minimum Filing Requirements for the Functional Unbundling of Electric Utility Tariffs. 1. Does this proposed, amended, or repealed rule or regulation have a financial impact? Yes X No 2. f you believe that the development of a financial impact statement is so speculative as to be cost prohibited, please explain. Because of the number of electric utilities affected and the significant differences in the effect on each utility, any financial impact estimate would be highly speculative. The rules are being adopted to establish uniform minimum filing requirements for functional unbundling, pursuant to Act 1556 of Section of the Act requires that the unbundling be supported by a current cost of service study. Section defines a current cost of service study as '...a newly prepared cost of service study designed to support unbundled rates, or an existing cost of service study used to support a company's existing rate schedules which were filed with the Commission to become effective within three (3) years of the effective date of this chapter, modified as necessary to support unbundled rates." Since some utilities have current cost of service studies, other utilities do not, and the degree to which the cost of service studies may need to be modified to support unbundling vary to such a significant degree, the Commission is simply unable to provide a financial Page 4

8 impact statement which would not be highly speculative. 3. f the purpose of this rule or regulation is to implement a federal rule or regulation, please give the incremental cost for implementing the regulation. N/A Fiscal Year Fiscal Ye ar General Revenue General Revenue Federal Funds Federal Funds Cash Funds Cash Funds Special Revenue Special Revenue Other Other Total Total 4. What is the total estimated cost by fiscal year to any party subject to the proposed, amended, or repealed rule or regulation? See response to Question Fiscal Year N/A Fiscal Year N/A 5. What is the total estimated cost by fiscal year to the agency to implement this regulation? Fiscal Year Fiscal Year 0 0 The incremental cost to the Arkansas Public Service Commission is minimal and not subject to accurate assessment at this time. t is anticipated that the only incremental cost to the agency will be the cost of some mailings, a court reporter for the hearing and publication of notice of the hearing. July 28, 1995 Page 5