2019 Annual Report

AArrkkaannssaass PPuubblliicc SSeerrvviiccee CCoommmmiissssiioonn

UUttiilliittiieess DDiivviissiioonn

22001199 AAnnnnuuaall RReeppoorrtt EElleeccttrriicc

NNaattuurraall GGaass

TTeelleeccoommmmuunniiccaattiioonnss

TTrraannssppoorrttaattiioonn NNeettwwoorrkk

WWaatteerr

ARKANSAS PUBLIC SERVICE COMMISSION UTILITIES DIVISION 2019 ANNUAL REPORT

This report was prepared in accordance with Arkansas Code Annotated §23‐2‐315, reflecting a full and complete account of the Arkansas Public Service Commission (Commission) transactions and proceedings for the preceding calendar year and other facts which have been found to be useful to our constituents.

This report is also available on our website: www.arkansas.gov/psc.

The Commission does not discriminate on the basis of race, color, national origin, sex, religion, age, or disability in employment or in the provision of services.

TABLE OF CONTENTS

INTRODUCTION

The Commission has general regulatory authority over electric and natural gas public utilities and certain water and sewer public utilities providing retail utility services to the public for compensation. The Commission is charged with the duty of ensuring that public utilities provide safe, adequate, and reliable utility service at just and reasonable rates. By law, such rates must allow public utilities the opportunity to recover the prudently incurred cost of providing such service and a fair rate of return on capital invested by the utilities for providing such service. The Commission is also charged with the duty of ensuring that customers are not charged excessive rates for such service. The Commission’s Tax Division renders ad valorem tax assessments for utilities and carriers. The Tax Division submits a separate report biennially.

During 2019, utilities under the Commission’s authority to review and regulate rates and practices included four investor‐owned electric companies, one generation and transmission electric cooperative, seventeen distribution electric cooperatives, four natural gas distribution companies, and one investor‐owned water company. The Commission has limited jurisdiction over two regional transmission organizations for matters other than rate regulation. The Commission further has authority over the safe operation of the intra‐state pipeline facilities of 148 natural gas operators and master meter gas operators. The Commission also has regulatory authority over certain practices and quality of service for 249 providers of telecommunication services. The Commission also certifies Transportation Network Companies and verifies ongoing compliance with the statutory requirements to operate. The Commission has limited jurisdiction over providers of telecommunications services, Voice Over Internet Protocol (VoIP) services, commercial radio services, or similar services to require annual reports and hear complaints on identifying and blocking telecommunications that violate certain state and federal laws on number spoofing. The Commission has no regulatory authority over municipally owned or operated utility services, wireless providers of telecommunication services, internet, VoIP service, cable, or satellite television services.

In compliance with Arkansas Code Annotated §23‐2‐315, the Commission submits an Annual Report to the Governor containing a full and complete account of its transactions and proceedings for the preceding calendar year. This Annual Report focuses on the Commission’s regulatory authority, organization, and activities during calendar year 2019 as follows:

• Section 1 provides commissioner profiles; • Section 2 describes the agency organization; • Section 3 describes the inaugural Diversity Summit; • Section 4 summarizes docket activity of Commission proceedings; • Section 5 describes other non‐docketed reviews; • Section 6 provides information on customer complaint resolution; • Section 7 summarizes the Commission’s eﬀorts in federal utility proceedings; and • Section 8 sets forth participation in national utility regulatory organizations.

2019 Annual Report 1

Appendix A lists the utilities under the Commission’s jurisdiction. These utilities generated annual revenues in Arkansas of approximately $5.8 billion, $4.7 billion of which were jurisdictional revenues.

Appendix B provides revenues and other statistics for each utility, as reported to the Commission in 2020 for the year 2019.

Appendix C outlines the Commission’s receipts and disbursements for 2019. To finance its regulatory operations, the Commission is authorized to levy and collect annual fees from jurisdictional utilities pursuant to Arkansas Code Annotated §23‐3‐110 and §23‐15‐214.

2 2019 Annual Report SECTION 1 COMMISSIONER PROFILES

CHAIRMAN TED J. THOMAS

Ted J. Thomas of Conway was appointed Chairman of the Arkansas Public Service Commission by Governor Asa Hutchinson in January 2015.

He has served as Chief Deputy Prosecuting Attorney for the 20th Judicial District, Administrative Law Judge at the Public Service Commission, Budget Director for Governor Mike Huckabee and in the Arkansas House of Representatives, where he served as Chairman of the State Agencies and Governmental Aﬀairs Committee during his final term.

Chairman Thomas received a Bachelor of Arts with High Honors in Political Science from the University of Arkansas in 1986 and a Juris Doctorate from the University of Arkansas School of Law in 1988. He is licensed to practice law before the United States Supreme Court, the Arkansas Supreme Court, the United States Courts of Appeal for the District of Columbia Circuit and the Eighth Circuit, and the United States District Courts for the Eastern and Western Districts of Arkansas.

Chairman Thomas is past president of the Organization of MISO States and continues to serve on the Executive Committee. He also serves on the National Association of Regulatory Utility Commissioners Committee on Electricity.

2019 Annual Report 3

COMMISSIONER KIMBERLY A. O’GUINN

Kimberly A. O'Guinn of Little Rock was appointed to the Arkansas Public Service Commission by Governor Asa Hutchinson in November of 2016.

Commissioner O’Guinn is a member of the National Association of Regulatory Utility Commissioners (NARUC) Committees on Energy Resources and Environment, International Relations, and the Washington Action Program. O’Guinn was appointed to NARUC’s Executive Committee and the Board of Directors. In addition, O’Guinn is a board member on the Southwest Power Pool’s Regional State Committee where she previously served as president. O’Guinn is Co-Chair of the National Utilities Diversity Council, serves on the board of the Financial Research Institute, and is an advisory council member of New Mexico State University Center for Public Utilities.

Prior to joining the Commission, Commissioner O’Guinn served as the Director of Communications for the Arkansas Department of Environmental Quality and a Permitting Engineer in the Office of Air Quality.

Commissioner O'Guinn received a Bachelor of Science in Environmental Engineering from the University of Oklahoma. While attending OU, she was designated a NASA Fellow while working for NASA Space Grant Consortium/NASA EPSCoR.

4 2019 Annual Report

COMMISSIONER JUSTIN TATE

Justin Tate of Little Rock was appointed to the Arkansas Public Service Commission by Governor Asa Hutchinson in January of 2019.

Prior to his appointment, he served in Governor Asa Hutchinson's Oﬃce as the Governor’s Deputy Chief Legal Counsel, Chief Legal Counsel, and Director of Rules and Regulatory Aﬀairs.

Commissioner Tate received a Bachelor of Arts in Political Science from the University of Arkansas at Fayetteville and a Juris Doctorate from Vanderbilt University Law School. He is licensed to practice law in Arkansas.

Commissioner Tate is a member of the National Association of Regulatory Utility Commissioners. He serves on the Committee on Gas.

2019 Annual Report 5

6 2019 Annual Report

SECTION 2

AGENCY ORGANIZATION

Arkansas Public Service Commission 1000 Center Street P.O. Box 400 Little Rock, Arkansas 72203 501‐682‐2051 www.arkansas.gov/psc

The Commission consists of three Commissioners appointed by the Governor for overlapping six‐year terms. The agency has 114 regular staﬀ positions divided into two Divisions: the Utilities Division (99) and the Tax Division (15). The Commissioners have oversight responsibility for both Divisions. This Annual Report addresses Utilities Division activities. The Tax Division submits a separate report biennially.

The Utilities Division, including the federally reimbursed Pipeline Safety Office, has 99 authorized regular positions. This total includes the Commissioners and their immediate staff, which encompasses their Administrative Law Judges, Legal, Research and Policy Development, the Office of the Secretary of the Commission, Administrative Services, Information Technology, and the Executive Director, including the eight General Staff sections. A list of all sections with the assigned number of positions, the organization chart, and a brief description of the responsibilities of each section follows.

2019 Annual Report 7

8 2019 Annual Report

2019 Annual Report 9

COMMISSIONERS

The Arkansas Public Service Commission consists of three Commissioners appointed by the Governor for overlapping six‐year terms.

Commissioners render decisions covering a wide spectrum of issues including public utility policy matters, rates, tariﬀs, territory allocations, utility plant construction sitings, and bond issues.

The Commissioners’ Staﬀ is comprised of the following: 1) Administrative Law Judges; 2) Legal; 3) Research and Policy Development; 4) Oﬃce of the Secretary of the Commission; 5) Administrative Services; and 6) Information Technology.

A description of the responsibilities of each section follows.

COMMISSIONERS’ STAFF

Administrative Law Judges

The Administrative Law Judges render decisions in dockets delegated to them by order of the Commission. The Administrative Law Judges also provide legal and technical advice and recommendations regarding regulatory issues to the Commission.

Legal

Attorneys in this Section advise and represent the Commission regarding various state and federal public utility matters pending before the Federal Energy Regulatory Commission, the Federal Communications Commission, the Securities and Exchange Commission, the Nuclear Regulatory Commission, the Department of Energy, the Arkansas General Assembly, and the United States Congress.

Research and Policy Development

This Section is the technical arm of the Commissioners’ Staﬀ, with personnel specializing in the electric, natural gas, telecommunications, and water industries, as well as in economic, legal, and accounting matters. This Section provides technical and policy advice to the Commissioners

10 2019 Annual Report

regarding various state and federal public utility matters pending before the Federal Energy Regulatory Commission, the Federal Communications Commission, the Securities and Exchange Commission, the Nuclear Regulatory Commission, the Department of Energy, the Arkansas General Assembly, and the United States Congress.

Oﬃce of the Secretary of the Commission (SOC)

All documents filed with the Commission and all orders issued by the Commission are processed by the SOC. Official Commission records such as docket files, tariffs, and annual reports are also maintained in this area. The SOC provides the public with access to official Commission records either directly as requested or through the Commission’s website.

Administrative Services

Staﬀ members assigned to the Administrative Services Section provide administrative support for the entire Agency.

This Section is comprised of two units: the Fiscal/Personnel Oﬃce and the Mail/Supply/Copy Center.

The Fiscal/Personnel Staﬀ members prepare annual and biennial budgets, handle procurement activities, process accounting and payroll actions, and maintain inventory control.

The Section also prepares assessments for the Commission’s operating budget and assists with the Federal Department of Transportation Pipeline Safety Grant. Other functions include maintaining personnel records, screening and processing job applications, conducting new employee orientation, and coordinating employee training and management classes.

The Mail/Supply/Copy Center handles internal mail distribution, photocopying, central supplies, and maintenance of the Agency‘s vehicle fleet.

Information Technology (IT)

The IT Section implements technology solutions to further Commission initiatives. IT supports the entire Agency. IT’s primary missions are personal computer and network operations for general oﬃce functions such as oﬃce automation, electronic mail, internet research, file and print sharing; system development and maintenance of the Tax Division tax assessment systems; development, deployment, and maintenance of the Electronic Filing System; and

2019 Annual Report 11

Commission operations support including enhancing electronic communication with external parties and citizens.

GENERAL STAFF

Executive Director

The Executive Director is responsible for the overall direction and management of the General Staﬀ of the Utilities Division, establishing Agency goals, objectives, policies, and procedures. The responsibilities of the General Staﬀ are accomplished through the development of subject matter expertise in each of the eight Sections described below.

Section heads serve as project managers on assigned dockets before the Commission and on other projects as needed. The Executive Director collaborates with Section managers and the cross‐sectional, multi‐disciplinary teams they lead in the thorough development and analysis of utility regulatory issues and the preparation and execution of case strategy as reflected in the General Staff’s response to actions sought by utilities and other non-utility applicants.

The Executive Director also prepares information in response to requests from the Arkansas General Assembly as well as other state agencies, and responds to requests for information from the media, government officials, utilities, and members of the public. The Executive Director and the Commissioners are actively involved in outreach efforts to inform utility customers and community leaders regarding utility matters and their effect on customers.

Electric Utilities

The Electric Utilities Section contributes industry-specific subject matter expertise on a wide range of issues as required to investigate, analyze, and make recommendations to the Commission in response to electric utility formal requests for Commission action. Section experts present recommendations to the Commission through pre-filed testimony and oral testimony subject to cross-examination during public evidentiary hearings.

Section members also conduct compliance audits of utilities with approved adjustment clauses, perform special project analyses, conduct general and special issue audits and investigations, and provide technical evaluations and responses to address inquiries from the public.

12 2019 Annual Report

Natural Gas and Water Utilities and Pipeline Safety

The Natural Gas and Water Utilities Section contributes industry-specific subject matter expertise on a wide range of issues as required to investigate, analyze, and make recommendations to the Commission in response to natural gas, water, and sewer utility formal requests for Commission action. Section experts present recommendations to the Commission through pre-filed testimony and oral testimony subject to cross-examination during public evidentiary hearings.

This Section also includes the Pipeline Safety Oﬃce, which is responsible for ensuring natural gas operators are in compliance with the Arkansas Gas Pipeline Code and the Federal Pipeline Safety Code. Compliance is assessed through periodic inspection of safety, corrosion, and leak control with reporting of corrective actions needed. The Office also works cooperatively with the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration to ensure the safe operation of natural gas facilities in the state. Section members may be required to present findings and recommendations to the Commission through pre‐filed expert testimony and oral testimony subject to cross‐examination during public hearings.

Telecommunications Utilities and Quality of Service

The Telecommunications Utilities and Quality of Service Section is responsible for three distinct areas: 1) certification of telecommunications providers, 2) certification of transportation network companies, and 3) engineering review of electric utility issues.

As to telecommunications, the Commission does not rate regulate Incumbent Local Exchange Carriers. Competitive Local Exchange Carriers and Interexchange Carriers must obtain a Certificate of Public Convenience and Necessity from the Commission to provide service in Arkansas and most telecommunications providers must comply with the Commission’s Telecommunications Provider Rules. The Commission is also responsible for the oversight of the Arkansas High Cost Fund, the Extension of Telecommunication Facilities Fund, and the Arkansas Intrastate Carrier Common Line Pool.

Transportation network companies require certification by the Commission to operate in the state, and the Staff verifies ongoing compliance with the requirements to operate.

2019 Annual Report 13

As to electric engineering issues, Section engineering staff conduct analysis under Arkansas statutory requirements and Commission rules of electric utility requests for either a Certificate of Convenience and Necessity or a Certificate of Environmental Compatibility and Public Need to construct certain facilities; utility petitions to construct navigable water crossings; and customer applications to interconnect net-metering facilities to operate in parallel with the electric utility. Section engineering staff also conduct ongoing evaluations of the quality of service provided by electric utilities in Arkansas. That evaluation measures electric utility performance against the Commission’s General Service Rules and Special Rules ‐ Electric and identifies and communicates to the utility opportunities for improvement. An additional area in which Section engineering staff provide analysis is in electric utility tariffs regarding application of tariffs and requests by a utility to modify certain policy tariffs.

Section experts present recommendations to the Commission through pre‐filed testimony and oral testimony subject to cross‐examination during public evidentiary hearings.

Financial Analysis

The Financial Analysis Section contributes subject matter expertise primarily in the areas of cost of capital and capital recovery as required to investigate, analyze and make recommendations in response to electric, natural gas, water, and sewer utility rate requests. Section experts make recommendations to the Commission through pre-filed testimony and oral testimony subject to cross-examination during public evidentiary hearings.

Section members also investigate, analyze, and make recommendations in response to electric utility nuclear decommissioning cost estimates and rate recovery requests, conduct focused investigations of proposed financings, and perform various other financial and economic analyses as needed.

Cost Allocation and Rate Design

The Cost Allocation and Rate Design Section contributes subject matter expertise primarily in the areas of cost allocation, rate design and billing determinants as required to investigate, analyze and make recommendations in response to electric, natural gas, water, and sewer utility rate requests. Section experts make recommendations to the Commission through pre- filed testimony and oral testimony subject to cross-examination during public evidentiary hearings.

Section members also investigate, analyze and make recommendations in response to electric and natural gas energy efficiency proposals, and lead in Staff’s development of various other economic analysis and regulatory issues, including distributed energy resources, net-energy

14 2019 Annual Report

metering, and time-of-use rates. Audits

The Audits Section Staff contribute accounting expertise across all utility industries. Section members investigate, evaluate, and make recommendations on accounting issues in assigned dockets, primarily general rate cases, formula rate reviews and other cost recovery proceedings. Section experts make recommendations to the Commission through pre‐filed testimony and oral testimony subject to cross‐examination during public evidentiary hearings.

Section members may also conduct compliance audits of utilities with approved adjustment clauses, perform special project analyses, conduct general and special issue audits and investigations, and provide technical evaluations and responses to address inquiries from the public.

Legal

Attorneys on the General Staﬀ represent the Staﬀ in proceedings before the Commission and contribute legal expertise in the investigation, evaluation, and development of Staff recommended positions in all proceedings before the Commission.

Staff attorneys may also serve a dual role in representing the Commission in matters and proceedings outside the Commission as needed, such as appellate cases and appearances before federal regulatory agencies.

Consumer Services

The Consumer Services Section Staff work with customers to answer questions and resolve complaints about the rates and services of regulated utilities. Staﬀ members review all complaints for compliance with Commission rules and approved utility tariﬀs and act as liaisons with utilities in resolving customer complaints. This Section also provides educational brochures and materials and makes group presentations as needed.

Another responsibility of the Consumer Services Section is customer service audits of utility policies and procedures to identify opportunities for improvements and recommendations are often made to ensure compliance with Commission rules.

Section members may present their findings and recommendations to the Commission through pre‐filed expert testimony and oral testimony subject to cross‐examination public hearings.

2019 Annual Report 15

16 2019 Annual Report

SECTION 3

INAUGURAL DIVERSITY SUMMIT

On February 25, 2019, the Commission hosted an inaugural Diversity Summit at the historic Mosaic Templars Cultural Center in downtown Little Rock, Arkansas. The theme of the Summit was “Opportunities in the Energy Sector” with the primary goal to provide awareness to Arkansas’s higher education professionals, particularly at Historically Black Colleges and Universities (HBCUs), on the expansive career opportunities in the energy industry.

Governor Asa Hutchinson offered supporting comments on the Summit, indicating, “Arkansas is creating an environment of opportunity for sustained growth as we address the changing demands of the energy sector. As our current workforce is preparing to retire, there is opportunity to create workforce pipelines to our higher education institutions to retain local talent and continue economic development throughout the state.”

Along with higher education professionals and students from Arkansas’s HBCUs Arkansas Baptist College, Philander Smith College, Shorter College, and the University of Arkansas at Pine Bluff, the Summit was attended by educational professionals and students representing other institutions in the University of Arkansas System.

The Summit featured keynote speakers and panelists from across the nation, including former Commissioner of the Federal Energy Regulatory Commission and Chairman of the Arkansas Public Service Commission, the Honorable Colette Honorable. In addition, the Summit featured policy makers, utility executives, diversity experts, and higher education professionals who facilitated discussions about building and sustaining pipelines to careers in the energy industry, and facilitated an opportunity for utilities to connect with diverse suppliers and discuss best practices.

The Commission was honored to include as a panelist one of its UAPB interns who shared her experiences and views on current energy topics in a Fireside Chat with PSC Chairman Ted J. Thomas.

2019 Annual Report 17

18 2019 Annual Report

SECTION 4 DOCKET ACTIVITY

During 2019, 72 new dockets were initiated and 422 orders were issued. Docket activity for each industry during 2019 is summarized below.

2019 DOCKET ACTIVITY SUMMARY

SUMMARY SCHEDULE OF ORDERS ISSUED IN 2019

2019 Annual Report 19

COMMISSION-INITIATED

Docket No. 19-027-A In the Matter of a Docket for the Filing by Providers of Annual Reports Pursuant to Acts 677 and 1074 of 2019

During the 2019 legislative session, the Arkansas General Assembly passed Acts 677 and 1074 of 2019 to address serious problems associated with the many robocalls and spoofed calls made to Arkansas residents each day. Act 1074 requires each Provider, as defined under the Act, to file with the Commission documentation beginning July 1, 2019 and annually thereafter demonstrating the Provider has implemented current and applicable technologies to identify and block telecommunications that violate Arkansas Code Annotated §§4-88-107(a)(i) [sic]4, 4-88-108(a), 4-99-108(0), or 4-99-302(b), as applicable, taking into consideration applicable state and federal laws, federal regulations, and costs (Report). Accordingly, the Commission established this Docket for the purpose of accepting each Provider's initial Report and each Provider's annual Reports filed thereafter. Order No. 1 provides the specific items of information required in the report. In accordance with the language of Act 1074, once a Provider has filed a completed Report, the Provider shall be deemed to be in compliance with the law until such time as the Commission shall determine otherwise.

All Providers are required to file on or before July 1, 2019, and annually thereafter, a Report demonstrating the Provider has implemented current and applicable technologies to identify and block telecommunications that violate Arkansas Code Annotated §§4-88-107(a)(ii), 4-88-108-(a), 4-99-108(0), or 4-99-302(b), as applicable, taking into consideration applicable state and federal laws, federal regulations, and costs.

This matter is pending before the Commission.

Docket No. 19-062-U Annual Determination of Interest Rate Applicable to Customer Deposits

In October 2019, the Commission established a docket for setting the annual simple interest rate to be paid on customer deposits for utility service during 2020. Under Arkansas law, the Commission makes this determination annually after notice and hearing. Staﬀ filed testimony recommending the use of 0.8 percent as the statewide customer deposit interest rate, which was not opposed by the jurisdictional utilities.

After a hearing in December 2019, the Commission set the interest rate for utility customer deposits at 0.8 percent for 2020.

20 2019 Annual Report

Docket No. 18-006-U Tax Cuts and Jobs Act of 2017 (TCJA)

In January 2018, the Commission required the gas, water, and electric investor‐owned utilities (IOUs) to file an analysis of the ratemaking eﬀects of the TCJA on its revenue requirement, to begin booking regulatory liabilities to record the estimated current and deferred impact, and to make adjustments to each aﬀected entry to incorporate the changes incurred by the passing of the TCJA for each IOU with a current rate case pending.

On July 26, 2018, after Reply and Sur‐Reply Comments or Testimony, a Hearing, Initial and Reply Briefs by the parties, Supplemental Comments and Responsive Testimony, the Commission issued its Order requiring the IOUs to adjust rates to return the excess tax expense collected since January 1, 2018 and the excess ADIT to ratepayers while not harming the utilities. The Commission also directed the utilities to file a separate Tax Adjustment Rider in a tariﬀ docket within 30 days to eﬀectuate the refund of any excess ADIT and reduction in revenue requirement not addressed elsewhere.

In September 2018, the Attorney General (AG) filed a Motion for Order of Contempt against The Empire District Electric Company and Liberty Utilities (Pine Bluﬀ Water), Inc. alleging failure to comply with the Commission’s Order No. 6. Responses to both Motions were filed by Staﬀ and the Companies.

In March 2019, the Commission issued Order No. 8 denying the AG’s Motion for Order of Contempt against Empire and Liberty, due to substantial compliance by the Companies subsequent to the AG’s Motion. However, the Commission did reserve the right to address certain remedies proposed by the AG in the Companies’ next rate case and, if applicable, request for a Formula Rate Plan.

Docket No. 16-028-U Investigation of Policies Related to Renewable Distributed Generation

On April 29, 2016, the Commission established this docket to collect information to consider whether a change is warranted in the Commission’s policies related to renewable distributed generation.

2019 Annual Report 21

On November 9, 2017, the Commission issued Order No. 5 to amend the docket to include all Distributed Energy Resources (DERs), not just renewable resources, and expand the subject matter of this docket to collect information to consider whether any change is warranted in the Commission’s policies related to DERs.

On February 13, 2018, the Commission received an informal report requested from The Regulatory Assistance Project entitled “Enabling Third‐Party Aggregation of Distributed Energy Resources” (RAP Report), which identifies issues in addition to those raised by the Commission in prior Orders that may need to be addressed in this Docket.

On July 27, 2018, the Commission issued Order No. 10, which launched the process to consider the issues and sub‐issues the Commission has identified for substantive exploration. The RAP Report is attached to Order No. 10 as Attachment 1. The Commission established an initial procedural schedule to allow an opportunity to submit comments on procedural issues prior to the forthcoming Educational Workshop on DER and Grid Modernization Procedural Issues.

The parties filed Pre‐Workshop procedural comments on September 28, 2018. By Order No. 11 dated April 30, 2019, the Commission announced the first public Educational Workshop on DER and Grid Modernization to be held on June 11 and 12, 2019. By Order No. 12, the Commission announced the schedule for the second, third, and fourth Workshops on DER and Grid Modernization. This schedule was subsequently amended by Order Nos. 13, 14, and 15. Workshop 2 was held September 4, 5, and 6, 2019. Workshop 3 was held on October 29 and 30, 2019. Workshop 4 is scheduled for January 22, 23, and 24, 2020 by Order No. 15 issued December 20, 2019.

This matter is pending before the Commission.

Docket No. 10-011-U Entergy System Agreement (ESA)

In February 2010, the Commission initiated this docket to conduct a detailed investigation as to whether Entergy Arkansas, LLC (EAL), independent of its parent company, was investigating all options when the ESA terminated in December 2013 and whether EAL was taking all necessary corrective actions to ensure and protect its Arkansas ratepayers against such continued detrimental eﬀects associated with EAL’s participation in the System Agreement and the operation and control of the Entergy Transmission System, including transmission assets owned by EAL and paid for by its ratepayers.

On April 8, 2013, by Order No. 76, the Commission granted: 1) EAL’s Application to transfer functional control of its electric transmission facilities to Midcontinent Independent System Operator, Inc. (MISO) conditioned upon full and continued compliance by EAL and MISO with each of the Order No. 68 conditions; 2) EAL’s request to discontinue activities necessary to

22 2019 Annual Report

operate as a stand‐alone electric utility; and 3) EAL’s request to defer its MISO transition costs. In addition, the Commission directed EAL and MISO to file on the first business day of each month, Supplemental Testimony providing monthly updates regarding the progress of the integration of EAL into MISO, critical developments in the various Entergy/MISO related proceedings pending before the Federal Energy Regulatory Commission and before Entergy’s other retail regulators, and ongoing compliance with the Order No. 68 conditions.

On September 18, 2013, by Order No. 77, the Commission authorized EAL to participate in the MISO Planning Resource Auction (PRA). Order No. 77 also required EAL to file an annual report of its participation in the MISO PRA by June 30 each calendar year beginning on June 30, 2015, and for Staﬀ to file responsive testimony within 30 days of the filing of EAL’s annual report.

EAL transferred functional control of its transmission assets to MISO on December 19, 2013.

On June 24, 2015, the Commission issued Order No. 80 granting MISO’s request to modify the reporting requirements of Order No. 76 to allow MISO to file Supplemental Testimony on a quarterly basis. Beginning in September 2015, MISO began filing Supplemental Testimony on a quarterly basis.

In December 2016, EAL submitted its first report regarding historical and projected net benefits of MISO membership pursuant to Condition No. 14 of Order No. 72. In March 2017 and July 2017, EAL submitted supplements to the report to include an assessment of the net benefits of MISO participation for the full year of 2016 and provide revised estimates regarding the historical and projected net benefits of MISO membership.

In November 2017, the Commission issued Order No. 85 finding that it was reasonable and in the public interest that EAL remain in MISO at this time. Additionally, Order No. 85 requires that EAL file its next evaluation report five years from the date of its last report, December 19, 2021.

In March, June, September, and December of 2019, MISO filed its quarterly Compliance Testimony with the Commission pursuant to Order No. 80.

On June 28, 2019, pursuant to Order No. 77, EAL submitted its annual report of participation in the MISO PRA.

On July 29, 2019, Staﬀ filed Responsive Testimony addressing EAL’s 2019 annual report.

Docket No. 81-071-F Cogeneration and Small Power Production

In March 1981, the Commission initiated a rulemaking to comply with the FERC rules issued pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA) §201 that required all

2019 Annual Report 23

electric utilities to purchase electric power from and sell electric power to qualifying cogeneration and small power production facilities.

In February 1983, the Commission adopted the Cogeneration Rules addressing the rates, charges, and conditions for the sale of electric energy and capacity between electric utilities and qualifying cogenerators or small power producers in Arkansas.

In accordance with the Commission’s Cogeneration Rule 3.2(c), electric utilities are required to file standard rates for purchases from qualifying facilities with a design capacity of 100 KW or less. In 2019, the revised avoided cost rates of Southwestern Electric Power Company were filed with and approved by the Commission. Entergy Arkansas, LLC submitted its biannual Avoided Capacity and Energy Cost Bulletins.

RULEMAKING

Docket No. 19-046-R In the Matter of Promulgation of Rules Concerning the Governance of Telecommunications Service Providers and Spoofing Providers Pursuant to Acts 677 and 1074 of 2019

On September 10, 2019, the Commission established this docket for the purpose of promulgating rules pursuant to Acts 677 and 1074 of 2019 regarding spoofing. The Commission proposed draft rules.

Initial Comments by the parties were filed on November 14, 2019 and Reply Comments were filed on December 19, 2019.

Sur-Reply Comments will be filed on January 30, 2020 and a hearing on the draft rules is scheduled on February 20, 2020.

The matter is pending before the Commission.

Docket No. 19-069-R Update to Arkansas Gas Pipeline Code

In December 2019, the Staff of the Commission submitted a Petition to Initiate a Docket for Rulemaking to Make Changes to the Arkansas Gas Pipeline Code in compliance with state and federal law. The Commission’s “Section 60105 (a)” agreement with the Department of Transportation Pipeline and Hazardous Material Safety Administration Office of Pipeline Safety

24 2019 Annual Report

requires that the Commission adopt the minimum pipeline safety standards contained in the Code of Federal Regulations, as amended. The current revision was required to incorporate in the Arkansas Gas Pipeline Code the minimum Federal pipeline safety standards. Staff filed testimony supporting the change.

In February 2020, a Commission hearing was conducted.

This matter is pending before the Commission.

Docket No. 16-027-R Net-Metering Implementation of Act 827 of 2015

On April 29, 2016, the Commission established this docket to gather information to be used to determine appropriate rates, terms, and conditions under Act 827 of 2015 (Act 827) for net‐metering contracts, including any changes necessary to the Commission’s Net‐Metering Rules (NMRs). As directed by the Commission, Staﬀ filed a NMR “strawman” proposal incorporating provisions of Act 827, a proposed rule addressing the filing requirements associated with requests for Commission approval for facilities larger than 300 kW and other clarifying changes.

Staﬀ recommended that the Commission establish a Net‐Metering Working Group (NMWG) to allow the Parties and other interested individuals and organizations to engage in a dialogue to facilitate the collection of pertinent information and establish guiding principles for the development of net‐metering tariﬀs. In Order No. 3, the Commission stated that the consideration of the changes to the NMRs would proceed and that the rate issues would be deferred to the consideration of the NMWG in Phase 2 of this proceeding. Subsequent to comments on the NMRs filed by the Parties, the Commission held a hearing on October 4, 2016.

On March 8, 2017, the Commission issued Order No. 10 in Phase 1 of this proceeding approving the NMRs, as modified therein, and found that net‐metering customers who have submitted a Standard Interconnection Agreement to the utility before the date of an order, if any, of Phase 2 which adopts a new net‐metering rate structure should be grandfathered under the current rate structure for a period of twenty years. The Utilities filed, and the Commission approved, revised net‐metering tariﬀs to implement the new rules in compliance with Order No. 10.

The Phase 2 Joint Report and Recommendations of the NMWG was filed on September 15, 2017 followed by the filing of Reply and Sur‐Reply Comments. A hearing was held on

2019 Annual Report 25

November 30 and December 1, 2017, followed by a briefing schedule.

On May 30, 2019, the Commission issued Order No. 22 to open Phase 3 of this Docket. They directed the General Staff to reconvene the NMWG to collaboratively further address rate issues and other issues raised by the passage of Act 464 of 2019 and explore whether the Parties can converge on an agreement for rate structure and other amendments to the NMRs and established a procedural schedule for filings and set a hearing date for December 5, 2019.

On August 26, 2019, the General Staff convened the NMWG as directed by the Commission. Staff began the collaborative process by providing to the NMWG, in advance, what Staff believed to be an uncontested baseline from which to begin discussions. Staff requested the participants provide any concerns or additional edits or revisions believed to be needed. Based on information and feedback received, Staff prepared for circulation a second draft. After collaborative discussions, again based on information and feedback received, Staff prepared for circulation a third draft. At the August 26, 2019, collaborative meeting, despite the Commission’s guidance concerning its view of certain noncontroversial issues, the NMWG was not able to achieve unanimous agreement concerning rate structure, contested issues, or even the form of the strawman NMRs.

On September 17, 2019, in compliance with the established procedural schedule, General Staff filed its strawman NMRs. On September 23, 2019, EAL submitted a Motion for Interim Rate Structure and to establish accelerated procedural schedule. The Commission has taken this Motion and all comments to the Motion under advisement.

In accordance with the established procedural Schedule, a public hearing was held in the Commission’s Hearing Room on December 5, 2019.

This matter is pending before the Commission.

ENERGY EFFICIENCY

Docket No. 13-002-U Continuation, Expansion, and Enhancement of Public Utility Energy Eﬃciency (EE) Programs in Arkansas

In January 2013, the Commission established this docket in the matter of the continuation, expansion, and enhancement of public utility EE Programs in Arkansas.

The current framework includes: 1) setting EE goals and utility incentive structures; 2) determining avoided costs; 3) evaluating program cost eﬀectiveness; 4) developing more uniform programs and measures among the utilities subject to the inter‐utility cooperation

26 2019 Annual Report

and coordination of programs between gas and electric utilities; and 5) implementing an enhanced statewide collaborative process.

In July 2018, by Order No. 43, the Commission approved EE Savings targets for Program Years (PYs) 2020‐2022. The utility energy savings targets for electric investor‐owned utilities (IOUs) were set at 1.20 percent of 2018 retail sales less self‐direct customers and for natural gas IOUs 0.50 percent of 2018 retail sales less self‐direct customers. There were no changes made to the incentive structure.

Each of the IOUs filed its three-year EE Program Portfolio (Three-Year EE Plan) for PYs 2020- 2022 on March 15, 2019 in its respective TF docket. Due to a late errata filing, by Order No. 49, the Commission granted Staff and other parties leave to file Supplemental Comments to Empire’s Three-Year EE Plan filing which was filed in its TF Docket 07-076-TF. The Commission approved the Three-Year EE Plan for PY 2020-2022 for Entergy Arkansas, LLC (EAL), Southwestern Electric Power Company (SWEPCO), Oklahoma Gas and Electric (OG&E), CenterPoint Energy Resources Corp. (CenterPoint), Black Hills Energy Arkansas, Inc. (BHEA), and Arkansas Oklahoma Gas Corporation (AOG) on July 1, 2019 by Order No. 51. This order was simultaneously issued in the TF docket for EAL, SWEPCO, OG&E, CenterPoint, BHEA, and AOG. The Commission also directed the parties to propose a Three-Year EE Plan Template that IOUs will use when submitting their proposal for PYs 2023-2025.

Docket No. 10-010-U Notice of Inquiry into Energy Efficiency (EE)

In February 2010, the Commission transferred certain EE issues to this docket. The issues transferred were: 1) full fuel cycle eﬃciency; 2) independent administration; 3) commercial and industrial opt‐out; 4) administrative costs and EE reporting needs; 5) best practices - National Action Plan for EE; 6) utility EE resources and staﬃng and training within the contractor market and within the utility; and 7) benefits of EE resources. For these issues, the Commission established various filing dates for reports, comments, testimony, and activities of working groups.

No action was required by the Commission in 2019.

2019 Annual Report 27

Docket No. 10-100-R Evaluation, Measurement, and Verification (EM&V) Protocol Amendments for Conservation and Energy Eﬃciency (EE) Programs

In December 2010, the Commission established this rulemaking docket on EM&V. As part of Order No. 1, a collaborative on EM&V was to develop an EM&V Protocol, propose amendments to the Commission’s Conservation and Energy Efficiency Programs (C&EE) Rules, and recommend an addendum to the C&EE Rules adopting the EM&V Protocol. The Commission noted that this rulemaking would affect future filings by the utilities in all of the EE tariff filings and reporting dockets concerning their EE programs and portfolios. This rulemaking docket is related to other orders issued in various EE dockets pending before the Commission.

On March 20, 2019, by Order No. 30, the Commission approved the requested process for updating the Arkansas Technical Reference Manual (TRM). The parties were directed to submit an updated TRM in August of the year preceding the beginning of the utilities' three-year planning cycle, subject to interim updates, addenda, and errata as warranted under specified criteria; and 2) TRM version 8.0 and subsequent, triennially-approved TRMs are approved for use during the next three-year cycle unless and until updated by the Commission. Version 8.1 of the TRM was approved by the Commission on December 17, 2019 by Order No. 35 for use in computing and evaluating PY 2020 EE programs results beginning January 1, 2020.

On May 10, 2019, by Order No. 31, the Commission accepted the National Standard Practice Manual Case Study: Arkansas’ Current Practices and supporting appendices and provided direction to the PWC regarding certain inconsistencies in reporting among the utilities.

In July 2019, Johnson Consulting Group filed a summary of the EM&V activities conducted by the evaluation teams for Program Year (PY) 2019, provided an independent assessment of the EM&V contractors’ performance, and provided recommendations to help improve future EM&V activities. In addition, Johnson Consulting Group sponsored the Annual Summary Report of EM&V findings, which summarized the key findings and recommendations of the separate EM&V reports prepared by the investor‐owned utilities.

28 2019 Annual Report

Docket No. 10-101-R Rules for Conservation and Energy Eﬃciency (C&EE) Programs to Allow Self‐Directed Programs (S‐D)

In 2010, after several years of proposals by a number of large commercial and industrial customers requesting that the Commission permit large consumers of electricity and natural gas to opt‐out of participating in and paying for Energy Eﬃciency (EE) Programs implemented by investor‐owned utilities, the Commission agreed. The Commission stated that allowing large consumers of electricity and natural gas to opt‐out through S‐D programs was in the public interest.

The Commission concluded that the S‐D or opt‐out alternative should be pursued as a means of maximizing the achievable benefits for all ratepayers and for the utility system of verifiable, cost‐eﬀective energy savings, where that alternative is more likely to reach this goal. The Commission further concluded that at a minimum, the S‐D/opt‐out program must deliver at least as much EE for the system as would occur in the absence of such a program.

Act 253 of 2013, codified as Arkansas Code §23-3-405(c) through (e) (Act 253), allowed certain customers classified within sectors 31 through 33 of the North American Industry Classification System (NAICS), as it existed on January 1 to opt-out of a utilities’ EE programs and self-direct their own EE programs by providing notice to the Commission on or before September 15 of any year. Act 253 of 2013 was amended by Act 309 of 2017 to include state-sponsored institutions of higher education.

The Commission’s C&EE rules continue to allow large consumers of electricity and natural gas to opt‐out through S‐D programs if they do not otherwise qualify under Act 253, as amended. The Commission grants qualified applicants a certificate to opt-out. Certificates issued under Act 253, as amended are permanent unless withdrawn by the consumer, while certificates granted under the Commissions C&EE rules (non-Act 253) are valid for the duration of the public utility’s EE plan approved by the Commission and must be renewed.

In 2019, there were 27 filings related to S-D/Opt-Out dockets. Of these, one docket was a duplicate of an existing S-D docket filed in 2014. There were two dockets where the only action in 2019 was closure of the docket. There was one request to update an existing certificate. This request was granted. There were three requests to withdraw a previously granted S-D/Opt-Out Certificate; that is, to Opt-In to a utility’s EE program. These three requests were granted. The remaining 21 filings were Applications for exemption: two applications were withdrawn and 19 were approved for exemption. Of the approved 19 exemptions, seven were approved under Act 253 and 12 were non-Act 253 exemptions.

See the table on next page for a summary of S-D Applications.

2019 Annual Report 29

2019 SELF-DIRECT OPTION SUMMARY

30 2019 Annual Report

Docket Nos. 08‐041‐RP through 08‐048‐RP, 08‐050‐RP through 08‐056‐RP, and 08‐60‐RP through 08‐063‐RP In the Matter of Certain Reports to be Filed by Electric Cooperatives

Pursuant to Order No. 12 in Docket No. 06‐004‐R, the various electric cooperatives regulated by the Commission are required to file reports annually with the Commission for the preceding program year as a condition for their exemption from the Energy Eﬃciency Rules. In April 2019, the Cooperatives filed the 2018 Joint Report on Energy Eﬃciency.

Docket Nos. 07‐075‐TF through 07‐079‐TF, 07‐081‐TF through 07‐083‐TF, and 07‐085‐TF Request for Approval of Various Energy Efficiency (EE) and the Tariff Related to the Programs

Pursuant to the Conservation and Energy Eﬃciency Rules as approved in Docket No. 06‐004‐R, the various utilities regulated by the Commission are required to file tariﬀ updates and reports annually by May 1 of each year for the preceding Program Year (PY).

The regulated utilities are required to file triennial EE program portfolios that must be approved by Commission order. As a part of the routine annual filings, the utilities file a true‐up for the existing Energy Efficiency Cost Recovery Rider for the preceding PY; a report on the effectiveness of those programs that have already been implemented, including savings, amounts spent on each program and in total; and proposed comprehensive program plans to be implemented in future years. In sum, the Commission required that all tariff and program specific filings should be made annually in the original Tariff (TF) docket of the respective investor‐owned utility. In addition, orders related to a customer’s request to self-direct or opt- out of a utility’s EE programs were filed in the customer-initiated docket and the respective utility’s TF docket.

Triennial EE program portfolios for PYs 2020-2022 were filed on March 15, 2019 by all of the utilities. The Commission approved the Three-Year EE Plan for PY 2020-2022 for Entergy Arkansas, LLC (EAL), Southwestern Electric Power Company (SWEPCO), Oklahoma Gas and Electric (OG&E), CenterPoint Energy Resources Corp. (CenterPoint), Black Hills Energy Arkansas, Inc. (BHEA), and Arkansas Oklahoma Gas Corporation (AOG) on July 1, 2019 by Order No. 51 in Docket 13-002, which was simultaneously issued in the TF dockets for EAL, SWEPCO, OG&E, CenterPoint, BHEA, and AOG. The PY 2020 EE Plan for The Empire District Electric Company (Empire) was approved by Order No. 84 in Docket No. 07-076-TF. By the same Order

2019 Annual Report 31

Empire’s PY 2021 and 2022 EE Program Portfolio Plans were disapproved and Empire was directed to file new plans for PY 2021 and 2022 on March 2, 2020.

This matter is pending before the Commission.

The tables below summarize the various activities that occurred in 2019 in the TF dockets open before the Commission.

2019 COMPANY SPECIFIC ENERGY EFFICIENCY Docket Activity Summary

COMPANY STATISTICS COMPANY STATISTICS 2019 Program Year 2019 Program Year

Revenue vs. Energy Efficiency Spending Energy Sales vs. Energy Savings

32 2019 Annual Report

GENERAL RATE CASES

Docket No. 19-008-U Southwestern Electric Power Company (SWEPCO)

In February 2019, SWEPCO filed an Application for Approval of a General Change in Rates and Tariffs. SWEPCO’s current authorized retail revenue requirement was $170,444,837. SWEPCO requested a retail revenue requirement of $228,041,023. The percentage increase requested by rate class, including fuel was:

The estimated monthly impact of the requested rate change on an average residential customer was an increase of $22.60, or 24 percent, for 1,000 kWh.

The current authorized return on equity was 10.25 percent and the overall rate of return was 6.01 percent. SWEPCO requested a return on equity of 10.5 percent and an overall rate of return of 5.21 percent.

SWEPCO notified the Commission of its election to implement a Formula Rate Review Rider pursuant to Act 725 of 2015. The Formula Rate Plan, Act 725 of 2015, provides for an annual adjustment to base rates.

In October 2019, the Parties filed a Joint Motion to approve the Unanimous Settlement Agreement.

On December 20, 2019, after public hearings, the Commission approved the Unanimous Settlement Agreement submitted by the parties, with some modifications, which provided a total rate schedule revenue requirement of $182.8 million. This revenue requirement provides for a net increase of $23.9 million. The Total Arkansas Retail increase of $52.8 million less the existing rider revenues of $28.9 million equals the agreed-to net increase of $23.9 million. The percentage increase by rate class, including fuel is:

2019 Annual Report 33

The estimated monthly impact on an average residential customer is $8.43, or 8.69 percent for 1,000 kWh.

The authorized return on equity is 9.45 percent and the overall rate of return is 4.93 percent.

In accordance with the Unanimous Settlement Agreement, SWEPCO’s Formula Rate Review Rider will be filed on April 15, 2021, with an effective date of October 15, 2021.

On December 27, 2019, the Commission approved the Compliance Tariffs filed by SWEPCO on December 26, 2019, effective with the first billing cycle of January 2020.

Docket No. 15-002-U Notice of Intent (NOI) to File an Application for a General Change in Rates

In February 2015, the Commission established this docket and required all jurisdictional utilities to file any NOI pursuant to Rules of Practice and Procedure (RPP) Rule 8.06 (any petition for a waiver under Rule 8.06) in the docket.

In December 2019, Ashley‐Chicot Electric Cooperative submitted its NOI to file an Application for Approval of a general change in its rates, charges, and tariﬀs.

34 2019 Annual Report

FORMULA RATE REQUESTS

Docket No. 18-046-FR Oklahoma Gas and Electric Company (OG&E)

OG&E’s Rate Schedule No. FRP, Formula Rate Plan Rider (Rider FRP), was approved in Docket No. 16-052-U pursuant to Act 725 of 2015 and allows the Company to implement annual rate adjustments based upon a projected year. Under the terms of OG&E’s Rider FRP, beginning in 2018, OG&E makes an annual filing on or about October 1 of each year for rates to become effective with the first billing cycle of April.

On October 1, 2018, OG&E filed its first Application pursuant to the terms of its Rider FRP. OG&E requested a total Rider FRP revenue change of $6,401,933. On March 6, 2019, the Commission approved a total Rider FRP revenue change of $3,300,699 effective April 1, 2019.

On October 1, 2019, OG&E filed its 2019 Application pursuant to the terms of its Rider FRP. OG&E requested a total Rider FRP revenue change of $5,841,575. OG&E’s 2019 Rider FRP Application is pending before the Commission.

Docket No. 17-010-FR CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

On April 4, 2019, CEA filed an Application for approval of its Formula Rate Plan (FRP) in compliance with the provisions of CEA’s Rider Schedule No. 9. CEA requested an increase of $13,495,581 in its retail revenue requirement.

On July 2, 2019, the Parties filed Statements of Errors and Objections and on July 31, 2019, CEA and the parties filed a Settlement Agreement.

The Commission issued Order No. 16 on August 23, 2019, approving the Settlement Agreement, which provided for a revenue increase of $7,300,000. to be effective for bills rendered on and after October 1, 2019. The cumulative Rider FRP revenue change approved for CEA is $20,060,672, which is allocated to the classes in the same manner as the $175,438,012 total rate schedule revenue requirement approved in Docket No. 15-098-U.

2019 Annual Report 35

Docket No. 16-036-FR Entergy Arkansas, LLC (EAL)

On July 5, 2019, EAL filed an Application pursuant to its Rate Schedule No. 44, Formula Rate Plan Rider (Rider FRP). EAL’s Rider FRP was approved in Docket No. 15‐015‐U pursuant to Act 725 of 2015 and allows the Company to implement annual rate adjustments based upon a projected year. EAL requested a total Rider FRP revenue increase of $15,315,744 to the cumulative Rider FRP revenue change of $192,204,161 approved for 2017 through 2019. EAL’s proposed rate change included a projected revenue deficiency for 2020 of $61,881,430 and a netting amount for historical year 2018 of ($46,565,686).

On December 23, 2019, the Commission approved a total revenue change of $10,113,301 to be effective in the first billing cycle of January 2020. The cumulative Rider FRP revenue change approved for EAL is $202,317,463, which is allocated to the classes in the same manner as the $1,277,230,243 total revenue requirement approved in Docket No. 15-015-U.

ELECTRIC COOPERATIVE ACT 821 RATE CHANGES

Docket No. 87-159-U Electric Distribution Cooperatives Act 821

This docket was implemented to establish the filing requirements applicable to electric distribution cooperatives seeking a general rate change under the authority of Arkansas Code Annotated §23-4-901 et seq. (also referred to as Act 821 of 1987). Generally, Act 821 of 1987 allows a distribution cooperative to implement a rate increase of 10.0 percent or less after a 90-day notice to its customers and the Commission.

In May 2019, Carroll Electric Cooperative filed an Application for a proposed revenue neutral rate change. Staff reviewed the request to ensure compliance with the requirements of Act 821 of 1987 and prior Commission orders addressing procedures for electric distribution cooperatives to request rate changes pursuant to Act 821 of 1987. Staff recommended approval of the requested rate change in September 2019. The rate change was approved in September 2019.

In August 2019, Mississippi County Electric Cooperative, Inc. filed an Application for a proposed revenue neutral rate change. Staff reviewed the request to ensure compliance with the requirements of Act 821 of 1987 and prior Commission orders addressing procedures for electric distribution cooperatives to request rate changes pursuant to Act 821 of 1987. Staff recommended approval of the requested rate change in November 2019. The rate change was approved in November 2019.

36 2019 Annual Report

In October 2019, Ouachita Electric Cooperative Corporation filed an Application for a reduction in retail rates of 4.5 percent. This matter is pending before the Commission.

In December 2019, Farmers Electric Cooperative Corporation filed an Application for a proposed revenue neutral rate change. This matter is pending before the Commission.

UTILITY RENEWABLE PROJECTS

Docket No. 19-013-U Oklahoma Gas & Electric (OG&E)

In May 2019, OG&E filed an Application for approval to construct two 5 Megawatt (MW) solar generation facilities in the State of Oklahoma pursuant to Arkansas Code Annotated §23‐18‐104, Construction of Power‐Generating Facilities Outside the State. The proposed generation facilities will support a program for OG&E’s Oklahoma customers.

In August 2019, the Commission issued Order No. 2, granting OG&E’s Application subject to the following requirements and conditions: 1) OG&E shall never seek recovery of any costs and expenses, revenues, or kilowatt hours associated with the construction and subsequent operation of the facilities through rates or when computing the utility’s cost of service for ratemaking proceedings without the Commission’s approval; 2) OG&E shall hold Arkansas ratepayers harmless from any adverse rate impacts that might otherwise result to Arkansas ratepayers as a result of this Application; and 3) OG&E shall work with Staff to file reporting requirements to readily facilitate Staff’s determination that OG&E has fully complied with and continues to comply with the conditions imposed by Order No. 2.

In September 2019, OG&E filed Agreed-Upon Reporting Requirements developed in conjunction with Staff that will be filed with each subsequent application for a general rate change and with each annual filing pursuant to OG&E’s Rate Schedule FRP, Formula Rate Plan Rider.

Docket No. 19-019-U Entergy Arkansas, LLC (EAL)

In May 2019, EAL filed a Petition for Approval for a Build-Own-Transfer (BOT) Arrangement for a Renewable Solar Resource to be constructed by a third party. The Petition requested that the Commission grant either a Certificate of Convenience and Necessity (CCN) or in the event the Commission determined it necessary, to grant a Certificate of Environmental Compatibility and Public Need (CECPN). EAL executed the BOT Agreement with Searcy Solar LLC, for a renewable energy resource, to be located on up to approximately 1,175 acres of land east of

2019 Annual Report 37

Searcy, Arkansas. The facility is planned to be a 100 MW solar photovoltaic array interconnecting to the existing Searcy Price 161 kV substation. The facility will also include a 10 MW three-hour DC battery energy storage system.

This matter is pending before the Commission.

Docket No. 19-035-U Southwestern Electric Power Company (SWEPCO)

In July 2019, SWEPCO filed an Application for approval to acquire three wind facilities, known as the North Central Wind Energy (NCWE) project, pursuant to the Arkansas Clean Energy Development Act. The NCWE project is comprised of three separate wind generation facilities totaling 1,485 MW of total installed nameplate capacity under construction in North Central Oklahoma. The three projects include the Traverse Wind Project (999 MW), the Maverick Wind Project (287 MW), and the Sundance Wind Project (199 MW). SWEPCO is seeking authorization to acquire a 54.5 percent share of the NCWE project, with its sister company, Public Service Company of Oklahoma, acquiring the remaining 45.5 percent. SWEPCO also requested that the Commission authorize cost recovery through its proposed Wind Facilities Asset Rider.

This matter is pending before the Commission.

Docket No. 18-029-U The Empire District Electric Company (EDE)

In February 2019, EDE filed an Application proposing an acquisition of three holding companies to own three out-of-state renewable wind generation assets. The proposed out-of-state wind projects consisted of approximately 600 MW of wind generation (the Wind Projects).

EDE entered into a purchase and sales agreement with Tenaska Missouri Matrix Wind Holdings, LLC (Tenaska), Steelhead Missouri Matrix Wind Holdings, LLC (Steelhead), pursuant to which EDE will acquire two holding companies that will each own a 150 MW wind generation project located in Missouri. These projects are known as the Kings Point Wind project located in Jasper, Barton, Dade, and Lawrence Counties, Missouri, and the North Fork

38 2019 Annual Report

Ridge Wind project in Barton and Jasper Counties, Missouri.

Additionally, EDE entered into a purchase and sales agreement with Neosho Ridge Wind JV, LLC, a joint venture between a subsidiary of Apex Clean Energy, Inc. (Apex), and a subsidiary of Steelhead Wind 2, LLC (Steelhead), pursuant to which EDE will acquire a holding company that will own a 301 MW wind generation project located in Kansas. This project is known as the Neosho Ridge Wind project and is located in Neosho County, Kansas.

In its Application, EDE requested a finding of prudence of action under the provisions of Arkansas Code Annotated §23-18-104, which states that “[n]o public utility subject to the jurisdiction of the Arkansas Public Service Commission shall commence construction of any power-generating facility to be located outside the boundaries of this state without the express written approval of the Commission.” The Company also notified the Commission that there would be a series of transactions with affiliates necessary to carry out the acquisition, maintenance, and operation of the Wind Projects. There was no request for cost recovery in the initial Application.

In April 2019, the Parties filed a Unanimous Settlement Agreement stating that, pursuant to Arkansas Code Annotated §23-18-104, EDE has provided adequate written notice to the Commission of its intent to commence construction of approximately 600 MW of wind generation facilities located outside of Arkansas. Prior to its acquisition of the Wind Projects, EDE will file an application with the Commission, seeking authorization for such acquisitions. At an appropriate time, EDE will file a request before the Commission seeking appropriate cost recovery of the Wind Projects.

In May 2019, the Commission approved the Unanimous Settlement Agreement.

NET-METERING FACILITIES

Docket No. 19-003-U City of Fayetteville

In January 2019, City of Fayetteville submitted its Application requesting authority to operate two solar renewable generating facilities in excess of 300 kW to also include two battery energy storage systems as Net‐Metering Facilities. The rated capacity of each facility was 5,750

kW (dc)/5,200 kW (ac) and each with a battery energy storage system rated at 12 MW. Staff evaluated the request for compliance with Arkansas statutory requirements and the Commission’s Net-Metering Rules and recommended approval of the request.

The Commission approved the request, including grandfathering, in June 2019.

2019 Annual Report 39

Docket No. 19-011-U Brantley & Sons, Inc.

In March 2019, Brantley & Sons, Inc. submitted its Application requesting authority to operate a solar renewable generating facility in excess of 300 kW as a Net-Metering Facility. The rated capacity of the facility was 849 kW (dc)/720 kW (ac). Staff evaluated the request for compliance with Arkansas statutory requirements and the Commission’s Net-Metering Rules and recommended approval of the request.

The Commission approved the request July 2019.

Docket No. 18-056-U Southern Arkansas University Tech (SAU Tech)

In August 2018, SAU Tech submitted its Application requesting authority to operate a solar renewable generating facility as a Net-Metering Facility. The rated capacity of the facility was

1,200 kW (dc)/1,000 kW (ac). Staff evaluated the request for compliance with Arkansas statutory requirements and the Commission’s Net-Metering Rules and recommended approval of the request. The Commission approved the Application in February 2019.

In March 2019, SAU Tech requested that the Commission approve grandfathering of the rate structure in effect at the time of submission of the Standard Interconnection Agreement for a term of twenty years in September 2019. Staff evaluated the request and recommended that the Commission find that SAU Tech had provided sufficient evidence supporting that the Net-Metering facility was in the public interest and the Commission granted SAU Tech’s request for grandfathering in September 2019.

Docket No. 18-066-U Don L. Kittler, Jr.

In October 2018, Don L. Kittler, Jr. submitted his Application requesting authority to operate a solar renewable generating facility as a Net‐Metering Facility. The rated capacity of the facility

was 3,000 kW (dc)/1,920 kW (ac). Staff evaluated the request for compliance with Arkansas statutory requirements and the Commission’s Net-Metering Rules and recommended approval of the request.

The Commission approved the Application in January 2019.

40 2019 Annual Report

Docket No. 18-077-U Batesville School District (Batesville)

In December 2018, Batesville submitted its Application requesting authority to operate a solar renewable generating facility as a Net‐Metering Facility. The rated capacity of the facility was

744 kW (dc)/730 kW (ac). Staff evaluated the request for compliance with Arkansas statutory requirements and the Commission’s Net-Metering Rules and recommended approval of the request.

The Commission approved the Application in February 2019.

Docket No. 18-080-U SI Property Investments, LLC

In December 2018, SI Property Investments, LLC submitted its Application requesting authority to operate a solar renewable generating facility as a Net‐Metering Facility. The rated capacity

of the facility was 579 kW (dc)/500 kW (ac). Staff evaluated the request for compliance with Arkansas statutory requirements and the Commission’s Net-Metering Rules and recommended approval of the request.

The Commission approved the Application in March 2019.

ELECTRIC OMMISSION‐INITIATED DOCKETS

Docket No. 19-004-P Woodruff Electric Cooperative Corporation (WECC)

In January 2019, WECC filed an Application seeking approval to amend the Agreement for Electric Service between WECC and the City of Augusta, Arkansas (Augusta). The special rate contract between WECC and Augusta was amended to extend the term of the Agreement for 10 years.

The Commission approved the Application in February 2019.

2019 Annual Report 41

Docket No. 19-014-U Oklahoma Gas & Electric (OG&E)

On April 24, 2019, OG&E filed an Application requesting expedited approval of its proposal to acquire capacity through the purchase of two existing electric generation facilities, identified as Oklahoma Cogeneration and AES Shady Point (the Generating Facilities). Oklahoma Cogeneration is a 146 MW nameplate capacity, natural-gas combined cycle generation facility located in Oklahoma City, Oklahoma. AES Shady Point is a 360 MW nameplate capacity, circulating fluidized bed coal-fired generation facility located near western Arkansas in Panama, Oklahoma.

OG&E requested approval of its Application by May 8, 2019. Staff and the Arkansas Attorney General (AG) submitted responses to OG&E’s Application, stating that the Parties did not have sufficient time to conduct a thorough review of OG&E’s request. Staff and the AG recognized that without an expedited order, OG&E would have to acquire costly short-term capacity for the summer of 2019. Staff and the AG recommended conditional approval of OG&E’s Application and also recommended that issues presented by OG&E's Application be addressed in a second phase of this Docket.

On May 8, 2019, the Commission conditionally approved OG&E’s request to acquire the Generating Facilities and required that all issues presented by OG&E’s Application be considered in a second phase of this docket. The Commission’s Order was conditioned on OG&E holding Arkansas ratepayers harmless, should the Commission subsequently find in the second phase of this Docket that 1) there is not, nor will there be, a benefit to Arkansas ratepayers, 2) there is, or there will be, an adverse impact to Arkansas ratepayers, or 3) that acquisition of these generation facilities is otherwise not in the public interest. The Commission also reserved its rights to impose further remedies or penalties upon OG&E for failure to comply with specific Arkansas requirements and procedures.

On May 31, 2019, OG&E filed Supplemental Testimony for the second phase of this Docket.

On August 19, 2019, the Parties to this Docket entered into a Settlement Agreement, recommending that the Commission find that the Generating Facilities are used and useful and the Company’s action to purchase the Generating Facilities was prudent and in the public interest. The Settling Parties also agreed that the costs associated with the Generating Facilities will be reviewed for prudency in the Company’s Formula Rate Plan (FRP) Rider filing on October 1, 2019; the value of the plants for ratemaking purposes shall be based on the acquisition price paid by OG&E and not the sellers’ net book value at acquisition; cost recovery of any future capital additions will be determined in subsequent FRP Rider filings or general rate cases; and the Company’s Arkansas-jurisdictional amount of operation and maintenance expense associated with the Generating Facilities recovered through OG&E’s FRP Rider will not exceed $2.0 million per year through 2022. On August 30, 2019, the Commission approved the Settlement Agreement.

42 2019 Annual Report

Docket No. 19-016-TF Carroll Electric Cooperative Corporation (CECC)

In April 2019, CECC filed an Application seeking approval of revisions to Rate Schedule No. 13- Municipal Tax Clause to reflect updated municipal tax percentages for the cities of Avoca, Elm Springs, and Jasper.

The Commission approved the Application in May 2019.

Docket No. 19-017-TF Oklahoma Gas & Electric (OG&E)

In May 2019, OG&E filed an Application to update its Rate Schedule No. FRP, Formula Rate Plan Rider (Rider FRP), pursuant to Order No. 7 in Docket No. 18-046-FR. The changes to the FRP tariff were recommended during OG&E’s first annual Rider FRP filing in Docket No. 18-046-FR, to make certain clarifications in the tariff. The updates did not include changes that impacted the revenue requirement or the substantive structure of the Rider FRP tariff. The Commission approved the Application in May 2019 by Order No. 1.

In August 2019, OG&E filed an updated version of the approved tariff to populate the schedules approved by Order No. 1 with amounts consistent with the Company’s approved Rider FRP rate change in Docket No. 18-046-FR, Order No. 7. The August 2019 Application was approved by Order No. 2 in August 2019.

Docket No. 19-018-P Ozarks Electric Cooperative Corporation (Ozarks)

In April 2019, Ozarks filed an Application to approve a Special Rate Contract referred to as an Energy Management Agreement (EMA) between Ozarks and the City of Fayetteville. The City of Fayetteville previously accepted a proposal from Ozarks to enter into a Tri-lateral Agreement with Ozarks and Today’s Power, Inc., for the construction and installation of two 5 megawatt (MW) Alternating Current (AC) solar power generating systems for a total of 10 MW AC solar. That Tri-lateral Agreement is a component of the solar installation project before the Commission in Docket No. 19-003-U. To facilitate this project, the EMA allows Ozarks to mitigate the Cooperative’s peak demand through the use of a battery storage facility.

The proposed EMA between Ozarks and the City of Fayetteville establishes a financial arrangement between the parties that will require Ozarks to make payments to the City of Fayetteville related to the battery storage facility and the City of Fayetteville’s on-site backup generators. The EMA between Ozarks and the City of Fayetteville reflects unique

2019 Annual Report 43

circumstances as well as Ozarks’ need to access equipment owned by the City of Fayetteville. The EMA obligated Ozarks to pay the City of Fayetteville’s fuel costs for use of the on-site backup generator.

In May 2019, the Commission approved the EMA as being in the public interest and ordered Ozarks to modify its Cost of Energy Adjustment Tariff to ensure its members would not be adversely impacted by the EMA. In May 2019, Ozarks filed the proposed revision to its Cost of Energy Adjustment Tariff, which was approved by the Commission in June 2019.

Docket No. 19-020-TF Entergy Arkansas, LLC (EAL)

On May 9, 2019, EAL submitted an Application for Approval of a Rider to Recover Certain Payments Arising from Federal Energy Regulatory Commission (FERC) Opinion No. 565 and Related Orders (Application). In its Application, EAL requested that the Commission authorize the recovery of $135,036,834 through the FERC-Imposed Payment Recovery Rider.

This matter is pending before the Commission.

Docket No. 19-055-U Implementation of Act 464 of 2019 and the Modification of Net-Metering Tariffs

In September 2019, the General Staff of the Commission submitted an Application to request that the Commission order all jurisdictional electric utilities with a Net-Metering tariff to promptly file an updated Net-Metering tariff to reflect the noncontroversial or not subject to debate provisions of Act 464 of 2019, which became effective July 24, 2019. Staff also requests that the Commission order all jurisdictional electric utilities to promptly process all interconnection requests under the Net-Metering Statute.

In November 2019, by Order No. 4, the Commission directed the utilities to file a revised Net- Metering tariff that conformed to Act 464.

Docket No. 19-061-TF Entergy Arkansas, LLC (EAL)

In November 2019, EAL filed its annual update to the Grand Gulf Rider (Rider GGR). The Rider

44 2019 Annual Report

GGR 2020 revenue requirement is approximately $106.4 million.

The Commission approved the revised Rider GGR rates to be effective for the first billing cycle in January 2020.

Docket No. 19-063-U Arkansas Electric Cooperative Corporation (AECC) Application for Authority to Extend Financing

In November 2019, AECC submitted an Application for Authority to Issue Evidence of Indebtedness for Greater Than Thirty-Six Months. The Application sought Commission approval to obtain a new $250 million unsecured Line of Credit (LOC) to replace an identical LOC, which expires in December 2020. Arkansas Code Annotated §23-3-104 requires a public utility to receive the Commission’s approval prior to issuing any evidence of indebtedness payable at periods of more than thirty-six months after the date of issuance.

Staff reviewed AECC’s Application and filed testimony in December 2019 supporting approval of the Application.

Order No. 4 issued February 7, 2020 approved AECC’s Application and granted AECC permission to enter into the proposed financing transaction.

Docket No. 19-065-TF Woodruff Electric Cooperative Corporation (WECC)

In November 2019, WECC submitted a Rate Schedule 6A, Agricultural Pumping Service for Net- Metering Customers. In November 2019, Staff requested the tariff be suspended, and the Commission granted that suspension by Order No. 1 in December of 2019.

This matter is pending Staff’s review.

Docket No. 18-014-TF Entergy Arkansas, LLC (EAL)

In February 2018, EAI filed an Application requesting approval of its proposal to establish the Tax Adjustment Rider (Rider TA) to provide retail customers with certain tax benefits associated with the Tax Cut and Jobs Act of 2017 (TCJA).

2019 Annual Report 45

In November 2019, EAL filed its 2020 true-up calculation pursuant to its Rate Schedule No. 45, Tax Adjustment Rider (Rider TA), which provides retail customers with certain tax benefits associated with the TCJA. Although the tariff requires the true-up be made in January, EAL is refunding the Large General Service and Lighting classes the over-collection fully in January, but is proposing to recover the under-collection from the Residential and Small General Service over twelve months.

On December 20, 2019, based on the testimony and exhibits filed herein, the Commission approved the revisions to Rider TA in its Order No. 8.

Docket No. 18-037-TF Entergy Arkansas, LLC (EAL)

Pursuant to Order No. 4 in Docket No. 17-041-U, EAL filed an Application for approval of an optional renewable energy tariff, the proposed Rate Schedule No. 62, Solar Energy Purchase Option (SEPO) Tariff on June 29, 2018. In the filing, EAL proposed to use a portion of its solar energy resources to provide certain customers access to renewable energy.

On March 1, 2019, a Settlement Agreement was filed supporting the SEPO tariff. The Settlement Agreement had provisions for EAL to allow customers, including residential customers, to contract for service in subscribed amounts from EAL’s Stuttgart Solar resource and, upon availability, Chicot Solar. The terms of the tariff allowed subscribing customers to obtain Renewable Energy Credits and the proportionate share of all capacity and energy market revenue associated with the resource. On March 13, 2019, the Commission approved EAL’s Rate Schedule No. 62 for Solar Energy Purchase Option, filed March 1, 2019.

Docket No. 18-051-U Applicability of Exemption to the Certificate of Convenience and Necessity (CCN)

In August 2018, the Commission opened a generic docket to determine the applicability of ACT 273 of 2017 addressing the proper interpretation of the Act and which facilities or components do not or should not require a CCN.

A hearing was held in October 2018. An order in this docket was issued in January 2019, finding “[t}he Commission concludes that under Act 273, what qualifies as an extension for purposes of Arkansas Code Annotated §23‐3‐201(b)(5) will depend upon the circumstances of each case.”

46 2019 Annual Report

Docket No. 18-055-TF The Empire District Electric Company (EDE)

Pursuant to the Commission’s Order No. 6 in Docket No. 18‐006‐U, EDE filed a separate rider to eﬀectuate the refund of any reduction in revenue requirement not addressed elsewhere.

On January 18, 2019, EDE filed its second Supplemental Testimony and Revised Tax Adjustment Rider (Rider TA) which reflected revised amounts to become effective February 2019, including the balance of the credits for the first year’s refund, the annual reduction due to the tax rate change and the 2018 and 2019 excess ADIT amounts. On January 28, 2019, on the basis of the second Supplemental Testimony and Revised Tax Adjustment Rider (Rider TA) filed by EDE's witness, and the Compliance Testimony of Staﬀ’s witness, the Commission approved EDE's proposed revisions to Rider TA.

In December 2019, EDE filed revisions to its Rider TA in compliance with the tariﬀ.

This matter is pending before the Commission.

Docket No. 18-069-U Entergy Arkansas, LLC (EAL)

In October 2017, Entergy Arkansas, Inc. submitted an Application for approval for authorization to issue First Mortgage Bonds or enter into one or more financing transactions involving issuing debentures or entering into loan agreements, credit facilities or other like instruments, which may be secured by either assets not subject to the lien of the Mortgage or collateralizing First Mortgage Bonds, between the date of entry of an approving Order in this docket and not later than December 31, 2020. The Company requests the authority to issue up to $854,287,000 in New Secured Debt and up to $2,855,713,000 in Redemption Secured Debt during the authorization period.

After reviewing the Company’s Application and supporting Testimony, Staff filed testimony in November 2018 recommending the Commission approve the Company’s request. The Company’s Application was approved in Order No. 2 issued November 27, 2018.

On April 8, 2019, EAL filed a Compliance Report in this Docket stating that on March 19, 2019, EAL issued $350,000,000 aggregate principal amount of its First Mortgage Bonds bearing interest at an annual rate of 4.20 percent. The net proceeds from the issuance were approximately $344,412,000 after the deduction for underwriting discounts and commissions and estimated offering expenses payable by EAL. Under Order No. 2 issued in this Docket, $504,287,000 remains authorized until December 31, 2020.

2019 Annual Report 47

Docket No. 18-073-TF Tariff Changes Reflecting Entergy Arkansas Name Change

In November 2018, Entergy Arkansas submitted a request for approval of tariﬀs to reflect a name change from Entergy Arkansas, Inc. to Entergy Arkansas, LLC.

Staff reviewed the revised tariffs and filed testimony on January 22, 2019 recommending the Commission approve the new tariffs and disapprove the existing tariffs. On January 28, 2019, the Commission issued Order No. 2 accepting Staff’s recommendation.

Docket No. 18-076-TF First Electric Cooperative Corporation (FECC)

In November 2018, FECC filed an Application requesting changes to Rate Schedule No. 8, Security Lighting Service, and Rate Schedule No. 54, Municipal Street Lighting Service, to include LED lamp oﬀerings.

On May 3, 2019, FECC filed supplemental information regarding its Application. In May 2019, the Commission approved FECC’s proposed tariff revisions.

Docket No. 18-079-U Attorney General of Arkansas (AG)

In December 2018, the AG filed an Application for an investigation into whether Entergy Arkansas, LLC’s (EAL) voluntary settlement agreement with the Sierra Club and the National Parks Conservation Association in the United States District Court for the Eastern District of Arkansas is prudent and in the public interest.

This matter is pending before the Commission.

Docket No. 17-052-U Entergy Arkansas, LLC (EAL)

On September 22, 2017, Entergy Arkansas, Inc. (EAI) filed a Motion for Protective Order of Non‐Disclosure and notified the Commission of its intent to file an application requesting the

48 2019 Annual Report

Commission issue an order approving a proposed internal restructuring of EAI and granting related relief. On October 4, 2017, the Commission approved the Company’s request by issuing Interim Protective Order No. 1. EAI submitted its Application for Approval of Proposed Restructuring and for Related Relief along with the supporting testimonies of its witnesses on November 17, 2017.

On November 22, 2017, the Arkansas Electric Energy Consumers (AEEC) was granted permission to intervene in the docket by Order No. 2.

On July 16, 2018, the Settling Parties filed a Joint Motion to Approve Settlement Agreement, Excuse Witnesses, and Waive Hearing. On July 19, 2018, Order No. 5 cancelled the hearing.

In Order No. 6 on August 23, 2018, the Commission found that the restructuring was consistent with the public interest. The new entity, Entergy Arkansas, LLC (EAL) will be solely responsible for the costs of the restructuring and all other rules, regulations, agreements, and orders that were in eﬀect for the former entity, EAI.

In Order No. 7 filed on November 29, 2018, the Commission found that the Internal Restructuring Credit Rider (Rider IRCR) which was filed by EAI on November 1, 2018, was reasonable and in the public interest. The Rider IRCR would provide a guaranteed bill credit to all EAI customers totaling $6.6 million annually for a period of six years beginning in 2019 for a total credit of $39.6 million.

In November 2019, EAL submitted its Rate Schedule No. 46, Rider IRCR , with rates to be effective for all bills rendered on and after the first billing cycle of January 2020.

In December 2019, Staff filed testimony recommending approval of Rate Schedule No. 46. On December 20, 2019, the Commission issued Order No. 8 approving the tariffs filed by EAL to become effective after the first billing cycle of January 2020.

Docket No. 16-052-U Oklahoma Gas and Electric Company (OG&E)

In August 2016, OG&E filed an Application for Approval of Changes in Rates for Retail Electric Service. On May 18, 2017, the Commission issued Order No. 8 approving a Settlement Agreement. This docket remains open for annual filings of re‐determined rates for several riders.

In March 2019, OG&E submitted an annual redetermination of its Energy Cost Recovery Rider Energy Cost Rates to be eﬀective in April 2019.

2019 Annual Report 49

In March 2019, OG&E submitted an annual redetermination of its Transmission Cost Recovery (TCR) Rider Rates. In May 2019, the Commission approved the revised TCR Rider Rates in Order No. 14 to be eﬀective June 2019.

In July 2019, OG&E submitted its 2017 Electric System Loss Study to be used in OG&E’s Energy Cost Recovery Rider monthly true-up adjustment, Day Ahead Pricing Rate, Flex Pricing Rate, and Cogeneration Rate beginning September 1, 2019, and in the annual update of the Load Reduction Rider prior to the next enrollment period beginning January 1, 2020.

In August 2019, by Order No. 15, the Commission approved the use of the 2017 Loss Study in the requested rate schedules. Additionally, the Commission required OG&E to separately seek approval for the use of the Loss Study in and for OG&E’s Formula Rate Plan (FRP) Rider in its next FRP filing.

In October 2019, OG&E submitted annual, informational updates related to its Renewable Energy Program tariﬀ rates to be eﬀective January 1, 2020.

In November 2019, OG&E submitted its annual, informational updates related to its Load Reduction Rider tariﬀ rates to be eﬀective April 2020.

Docket No. 16-053-U The Empire District Electric Company (EDE)

On July 21, 2016, EDE filed an Application seeking approval of proposed Rate Schedule No. 24, Riverton Rider, designed to recover the non‐fuel revenue requirement associated with the investment in Riverton 12 Natural Gas Combined Cycle Generating Unit. The expenses and investment recovered by the Riverton Rider are directly related to the conversion of the older Riverton 12 unit from a simple cycle natural gas‐fired unit to a combined cycle unit.

On October 25, 2016, the Commission approved the Application in Order No. 5, finding that the construction and conversion was reasonable and in the public interest.

In February 2019, EDE filed its annual update to the Riverton Rider. In March 2019, EDE filed a corrected update to its annual Riverton Rider Tariﬀ, with a corrected revenue requirement of $717,219. The Commission approved EDE‘s revised Riverton Rider rates to be eﬀective for the first billing cycle of April 2019.

50 2019 Annual Report

Docket No. 16-060-U Entergy Arkansas, LLC (EAL)

On September 19, 2016, EAL filed an Application seeking an Order from the Commission finding the deployment of Advanced Metering Infrastructure (AMI), including the removal and retirement of existing meters and installation of new advanced meters and supporting systems and equipment throughout its service territories in Arkansas was in the public interest.

On August 11, 2017, the Parties filed a Joint Motion to approve a Settlement Agreement, which supported EAL’s proposal to install new advanced meters and supporting systems to be in the public interest. The Settlement Agreement provided for the Parties to work cooperatively to develop a comprehensive customer education program and new tariﬀs that take advantage of the upgraded technology. The Settlement Agreement also identified annual reporting requirements for EAL to report on specific metrics related to AMI deployment, with the initial report due by the end of April 2019. The Commission approved the Settlement Agreement in October 2017.

In April 2019, EAL submitted its first annual report pursuant to the Settlement Agreement approved by Order No. 8.

Docket No. 15-015-U Entergy Arkansas, LLC (EAL)

In April 2015, EAL filed an Application for Approval of Changes in Rates for Retail Electric Service. On February 23, 2016, the Commission issued an Order approving a Settlement Agreement with modifications. This docket remains open for annual filings of re‐determined rates for several riders.

In March 2019, EAL submitted an annual redetermination of its Energy Cost Recovery Rider Energy Cost Rate to be eﬀective in April 2019.

In May 2019, EAL filed an update for the annual redetermination of its Production Cost Allocation Rider rates to be effective in July 2019.

In October 2019, EAL submitted an annual redetermination of its Midcontinent Independent System Operator, Inc. Rider rates. The Commission approved the revised rates on December 20, 2019, to become eﬀective in the first billing cycle of January 2020.

2019 Annual Report 51

In November 2019, EAL submitted an annual redetermination of its Capacity Cost Recovery Rider rates. The Commission approved the revised rates on December 20, 2019, to become effective in the first billing cycle of January 2020.

Docket No. 15-034-U Oklahoma Gas and Electric Company (OG&E)

In May 2019, OG&E filed Direct Testimony in support of a request for approval of an interim surcharge pursuant to Act 310 of 1981, as amended, seeking recovery of investments and expenditures reasonably incurred in order to comply with certain provisions of the Federal Clean Air Act.

On July 1, 2019, the Commission Order No. 15 approved the procedural schedule proposed by the parties and required legal briefs to address the effect, if any, of the Formula Rate Plan under Act 725 of 2015 on the utility's ability or right to recover such charges through an interim surcharge under Act 310.

Direct and Rebuttal Testimony along with briefs were filed in September 2019 and Surrebuttal Testimony and reply briefs were filed in October 2019.

On December 6, 2019, a Joint Motion to Approve a Partial Settlement Agreement along with testimony was filed which stipulated to two alternative terms to be dictated by the Commission’s finding regarding the appropriateness of OG&E’s recovery of Act 310 investments and expenses through its Company’s Environmental Compliance Plan Rider, separate and apart from its revenue requirement, under its Formula Rate Plan filings, or whether such investments and expenses shall be recovered as part of OG&E’s revenue requirement associated with its Act 725 Formula Rate Plan Filing. A hearing was held on December 17, 2019.

This matter is pending before the Commission.

Docket No. 15-122-TF Ozarks Electric Cooperative Corporation (OECC)

On December 3, 2015, OECC filed an Application seeking approval of the Ozarks Natural Energy (ONE) Solar Program. The ONE Solar Program would provide OECC’s members an opportunity,

52 2019 Annual Report

on a voluntary basis, to subscribe to a share of the output from the community solar facility that OECC planned to construct and to receive a monthly bill credit in return. The ONE Solar Program includes a provision for an annual redetermination of the monthly bill credit.

On April 5, 2016, the Commission approved the Application. This docket remains open for filings of the annual redetermination of the monthly bill credit.

In March 2019, OECC filed its annual rate redetermination of the monthly bill credit to be eﬀective with the first billing cycle in May 2019. In March 2019, the Commission approved the monthly bill credit.

Docket No. 13-111-U The Empire District Electric Company (EDE)

In December 2013, EDE filed an Application for Approval of a General Increase in Rates for Retail Electric Service. On September 26, 2014, the Commission approved rates to recover a revenue requirement of $9,221,853. Several rate riders that provide for annual adjustments were also approved.

In March 2019, EDE submitted its annual redetermination of the Energy Cost Recovery Rider Energy Cost Rate to be eﬀective in April 2019. Also in March 2019, EDE filed its annual redetermination of rates for the Transmission Cost Recovery Rider (TCR Rider).

In May 2019, the TCR Rider rates were approved.

Docket No. 09-008-U Southwestern Electric Power Company (SWEPCO)

In February 2009, SWEPCO filed an Application for Approval of a General Change in Rates and Tariﬀs. In its rate case, SWEPCO sought approval of a Generation Recovery Rider (Rider GR) to concurrently recover the construction financing costs related to its J. Lamar Stall plant that was under construction. By Order No. 12, the Commission approved Rider GR as provided in the Settlement Agreement filed by the parties in the case.

In March 2019, SWEPCO submitted its annual recalculation of the Energy Cost Recovery Rider Energy Cost Rates to be effective in April 2019.

2019 Annual Report 53

In April 2019, SWEPCO filed its annual, re‐determined Rider GR rate factors.

In June 2019, by Order No. 31, the Commission approved SWEPCO’s filing eﬀective in July 2019.

Docket No. 07-138-TF Entergy Arkansas, LLC (EAL)

On February 15, 2019, EAL filed an Application seeking approval of its annual update to Rate Schedule No. 43-Federal Litigation Consulting Fee (FLCF) Rider.

On March 4, 2019, EAL submitted a correction to the annual filing. On March 7, 2019, the Commission approved the FLCF Net Monthly rate to become effective in April 2019.

Docket No. 96-341-U Entergy Arkansas, LLC (EAL)

In October 1996, Entergy Arkansas, Inc. (EAI) and Staﬀ filed a Joint Motion requesting the Commission’s adoption of proposed Decommissioning Trust Fund Guidelines for Arkansas Nuclear One Steam Electric Generating Station Units Nos. 1 and 2. This docket was established in order to separate the investment of the decommissioning trust funds from the decommissioning cost studies and annual decommissioning rate updates, which will continue to be filed under Docket No. 87‐166‐TF.

In March 1997, Arkansas Electric Cooperative Corporation became a Party to the Joint Motion. Order No. 3 approved the Decommissioning Trust Fund Guidelines proposed by the joint applicants. From 1997 forward, EAI has filed quarterly Decommissioning Trust Fund Reports for this docket.

EAL filed the required Trust Fund Reports in March, May, August, and November 2019.

Docket No. 87-166-TF Entergy Arkansas, LLC (EAL)

EAL files annually, on or about November 1, an analysis and recommendation regarding Rate

54 2019 Annual Report

Schedule No. 37, the Arkansas Nuclear One Decommissioning Cost Rider (Rider NDCR). Rider NDCR provides for recovery of funds, which will be used to decommission Arkansas Nuclear One (ANO) Units 1 and 2 in the future. The analysis compares projected future decommissioning trust fund balances to projected future decommissioning costs for each unit. Any estimated shortfalls in the trust fund balances will result in a collection of funds through the Rider NDCR during the upcoming calendar year. If a surplus of funds over costs is projected, the Rider NDCR may be suspended for the upcoming calendar year. The current operating licenses for ANO Units 1 and 2, as granted by the Nuclear Regulatory Commission, extend through 2034 and 2038, respectively.

This docket provides for a decommissioning cost study to be performed and filed with the Commission every five years. In March 2019, EAL filed its Motion for Approval of Revised Estimate of Arkansas Nuclear One Decommissioning Costs (Motion), which included a revised estimate to decommission Units One and Two and was supported by the Direct Testimony of William Cloutier, Manager of Decommissioning Services at TLG Services, Inc. Among the recommendations included in the Motion were to increase the estimate to decommission the two Units from $1.676 billion (2014 estimate) to $2.007 billion.

In July of 2019, Staff filed Direct Testimony and Exhibits, which identified several deficiencies in EAL’s March filing, most notably an improperly applied inflation factor for use in cost escalation. Staff made several recommendations including an adjustment to this cost escalator, which the Company accepted and filed an amended Motion.

In August 2019, the parties filed a Joint Motion to Approve Settlement Agreement and Cancel Hearing.

On October 9, 2019, the Commission issued Order No. 69 finding the Settlement Agreement was just and reasonable and in the public interest.

On November 1, 2019, EAL submitted a revised Attachment A to Rider NDCR containing rate adjustments to be effective for billing months January 2020 to December 2020. The rate impact of the proposed adjustments was an increase to the revenue requirement of $5.03 million. Staff’s review of the revised Attachment A revealed a misapplication of data by EAL, which was relayed to the Company. The Company filed an amended Attachment A to Rider NDCR containing rates, which resulted in a decrease to the revenue requirement of $2.05 million.

On December 13, 2019, the Commission issued Order No. 70 approving the amended rates.

2019 Annual Report 55

ELECTRIC CONSTRUCTION

Docket No. 19-002-U Carroll Electric Cooperative Corporation (CECC)

In February 2019, CECC filed an Application for a Certificate of Environmental Compatibility and Public Need (CECPN) to construct and operate transmission facilities including a 14 mile, 161 kV transmission line to connect its Green Forest distribution substation in Carroll County to Long Creek substation in Stone County, Missouri.

The Commission approved the CCN in June 2019.

Docket No. 19-023-U Arkansas Electric Cooperative Corporation (AECC)

In July 2019, AECC filed an Application for a Certificate of Environmental Compatibility and Public Need (CECPN) to construct, own, and operate transmission facilities in Van Buren and Cleburne Counties. AECC proposed a new 161 kV Switching Station in Cleburne County, a 25.8 mile, double circuit 161-69 kV transmission line, including two Navigable Water Crossings. AECC has not received approvals needed from the United States Army Corp of Engineers for the Navigable Water Crossings.

The Commission approved the CECPN in October 2019 but withheld approval of the Petition for the Navigable Water Crossings until AECC files the appropriate approvals.

Docket No. 18-025-U Arkansas Electric Cooperative Corporation (AECC)

In December 2018, AECC filed an Application for a Certificate of Environmental Compatibility and Public Need (CECPN) to construct, own, and operate transmission facilities including an 18 mile, 161 kV transmission line, transmission switching station, and transmission substation, all located in Van Buren County, Arkansas.

The Commission approved the CECPN in May 2019.

56 2019 Annual Report

ELECTRIC CUSTOMER RELEASE

Docket No. 19-031-A Southwestern Electric Power Company (SWEPCO)

In June 2019, SWEPCO filed an Application requesting a formal release of a residence from Arkansas Valley Electric Cooperative Corporation (AVECC). AVECC indicated that it would be more economically feasible for SWEPCO to serve the customer. SWEPCO indicated its willingness to serve the customer and AVECC’s willingness to release.

The Commission approved the Application in June 2019.

Docket No. 19-032-A Woodruff Electric Cooperative Corporation (WECC)

In June 2019, WECC filed an Application requesting a formal release of a center pivot irrigation well from Entergy Arkansas, LLC (EAL). EAL’s closest facilities are located 2,400 feet from the service location while WECC has facilities within 50 feet. WECC indicated its willingness to serve the customer and EAL’s willingness to release.

The Commission approved the Application in July 2019.

Docket No. 19-033-A C & L Electric Cooperative Corporation (C&L)

In June 2019, C&L filed an Application requesting a formal release of a well from Entergy Arkansas, LLC (EAL). EAL’s closest facilities are located 2,300 feet from the service location while C&L has facilities within 1,750 feet. C&L indicated its willingness to serve the customer and EAL’s willingness to release.

The Commission approved the Application in July 2019.

Docket No. 19-036-A Woodruff Electric Cooperative Corporation (WECC)

In July 2019, WECC filed an Application requesting a formal release of a residence from

2019 Annual Report 57

Entergy Arkansas, LLC (EAL). EAL’s closest facilities are located 2,600 feet from the service location while WECC has facilities within 40 yards. WECC indicated its willingness to serve the customer and EAL’s willingness to release.

The Commission approved the Application in July 2019.

Docket No. 19-041-A Carroll Electric Cooperative Corporation (CECC)

In July 2019, CECC filed an Application requesting a formal release of a residence from Entergy Arkansas, LLC (EAL). EAL’s closest facilities are located 2.3 miles from the service location while CECC has facilities within 500 feet. CECC indicated its willingness to serve the customer and EAL’s willingness to release.

The Commission approved the Application in August 2019.

Docket No. 19-070-A Entergy Arkansas, LLC (EAL)

In December 2019, EAL filed an Application requesting a formal release of a hunting lodge from First Electric Cooperative Corporation (FECC). FECC’s closest facilities are located 2,700 feet from the service location while EAL has facilities within 300 feet. EAL indicated its willingness to serve the customer and FECC’s willingness to release.

This matter is pending before the Commission.

Docket No. 19-072-A First Electric Cooperative Corporation (FECC)

In December 2019, FECC filed an Application requesting a formal release of a residence from Entergy Arkansas, LLC (EAL). EAL’s closest facilities are located 2.5 miles from the service location. Due to the distance and expense of EAL’s extension, EAL is agreeable to the release.

58 2019 Annual Report

FECC indicated its willingness to serve the customer.

This matter is pending before the Commission.

NATURAL GAS

Docket No. 19-001-TF CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

On January 7, 2019, CEA filed proposed tariff revisions to its Rider Formula Rate Plan (FRP) to reflect the ratemaking effects of the Tax Cuts and Jobs Act of 2017 on the revenue conversion factor and the corresponding Rider FRP revenue change.

On February 5, 2019, the Commission approved CEA’s tariff revision finding that the FRP revisions were reasonable and in the public interest.

Docket No. 19-068-U Black Hills Energy Arkansas, Inc. (BHEA)

Pursuant to Act 310 of 1981, as amended, BHEA filed an interim rate schedule for the application of a surcharge on its customers' bills to recover expenditures that BHEA asserted it has reasonably incurred as a direct result of legislative or regulatory requirements relating to the protection of the public health, safety or the environment, along with Direct Testimony.

This matter is pending before the Commission.

Docket No. 18-007-U Black Hills Energy Arkansas, Inc. (BHEA)

In January 2018, BHEA submitted an application for a Certificate of Environmental Compatibility and Public Need (CECPN) to construct and operate a natural gas pipeline in Benton County. Upon review, Staﬀ filed testimony supporting the request. In June 2018, the Commission approved the request of BHEA.

In January 2019, BHEA submitted an Application for Amendment to the CECPN. In February 2019, the Commission approved the Application for Amendment.

2019 Annual Report 59

This matter is pending before the Commission.

Docket No. 18-008-U Black Hills Energy Arkansas, Inc. (BHEA)

In January 2018, BHEA submitted an application for a Certificate of Environmental Compatibility and Public Need to construct and operate a natural gas pipeline in Benton County. Upon review, Staﬀ filed testimony supporting the request. In June 2018, the Commission approved the request of BHEA. The Commission closed this docket on January 2, 2019.

Docket No. 18-034-U CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

In June 2018, CEA submitted an application for a Certificate of Environmental Compatibility and Public Need to construct and operate a natural gas pipeline in Faulkner County. Upon review, Staﬀ filed testimony supporting the request.

In October 2019, CEA submitted a Motion to Reopen Proceeding for Additional Landowners Notifications and the docket was reopened by the Commission. Upon review of CEA’s filing of Supplemental Testimony and Amended Exhibits, Staff filed Supplemental Testimony supporting the amended application.

This matter is pending before the Commission.

Docket No. 18-047-U CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

CEA submitted an application for the replacement, construction, and operation of a navigable water crossing of the White River in August 2018. Upon review, Staﬀ filed testimony supporting the request. In November 2018, the Commission approved the request of CEA.

Due to flooding along the White River in 2019 and the encounter of hard rock, this project has

60 2019 Annual Report

not been completed.

This matter is pending before the Commission.

Docket No. 18-050-TF CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

Pursuant to the Commission’s Order No. 6 in Docket No. 18‐006‐U, CEA filed a separate rider to eﬀectuate the refund of any excess Accumulated Deferred Income Tax and reduction in revenue requirement not addressed elsewhere.

On March 20, 2019, CEA filed notice of the final true-up and expiration of its Rider Tax Cuts and Jobs Act of 2017.

Docket No. 18-052-TF Black Hills Energy Arkansas, Inc. (BHEA)

Pursuant to the Commission’s Order No. 6 in Docket No. 18‐006‐U, BHEA filed a separate rider to eﬀectuate the refund of any excess Accumulated Deferred Income Tax and reduction in revenue requirement not addressed elsewhere.

On July 1, 2019, BHEA filed notice of the final true-up of its Tax Adjustment Rider to be reflected on customers’ August bills, with any residual amounts flowing through BHEA’s November 2019 Cost of Gas filing.

Docket No. 18-053-TF Arkansas Oklahoma Gas Corporation (AOG)

Pursuant to the Commission’s Order No. 6 in Docket No. 18‐006‐U, AOG filed a separate rider to eﬀectuate the refund of any excess Accumulated Deferred Income Tax and reduction in revenue requirement not addressed elsewhere. On December 30, 2019, AOG filed its revised Tax Adjustment Rider, Exhibit B.

This matter is pending before the Commission.

2019 Annual Report 61

Docket No. 18-057-U CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

On October 1, 2018, CEA filed an Application for approval of its upstream pipeline services contracting process and resulting pipeline contract with Enable Gas Transmission, LLC (EGT). This filing was made pursuant to the settlement agreement approved by the Commission in the Company’s 2017 Formula Rate Plan proceeding where the Company agreed to seek approval of the process/contract related to the replacement of its upstream pipeline service agreements due to expire in 2021.

On June 27, 2019, the Commission issued an Order finding that CEA’s renegotiated contracts with EGT were reasonable and directed CEA to, no later than three years before the expiration of the upstream services contracts at issue in the instant Docket, initiate a docket to consider whether renewal of the contracts should be pursuant to competitive bidding or negotiated contracts and, if the former, to begin the process of soliciting competitive bids.

On July 7, 2019, the Attorney General of Arkansas and the Arkansas Gas Consumers filed a Petition for Rehearing. On August 20, 2019 by Order No. 10, the Commission denied the Petition.

Docket No. 18-064-U Ozark Gas Transmission LLC

In October 2018, Ozark Gas Transmission LLC submitted a Petition for the authority and approval for a navigable river crossing in Izard County. Upon review, Staff filed testimony supporting the request.

In November 2018, the Commission approved the request of Ozark Gas Transmission LLC.

This docket was closed in March 2019.

Docket No. 17-071-U Black Hills Energy Arkansas, Inc. (BHEA)

On October 9, 2019, BHEA filed the Supplemental Testimony and Exhibits of Wendy H. Robbins supporting the recovery of costs associated with the decommissioning of BHEA’s LNG plant as provided by Section IV(A)(2) of the Stipulation and Settlement Agreement approved by the Commission’s Order No. 6 in this Docket.

This matter is currently pending before the Commission.

62 2019 Annual Report

Docket No. 15-031-U Black Hills Energy Arkansas, Inc. (BHEA)

On August 23, 2019, BHEA filed an Application for Approval of an Exception to the Settlement Agreement (Agreement). BHEA is requesting an exception to the Agreement to permit the Company to carry out any work required by any rules, regulations, or laws of any state or federal agency or regulatory body governing natural gas storage without having to first seek the permission of the Commission. On September 27, 2019, the Commission approved exception requested by BHEA and directed the Company to file an annual Storage Integrity Management Plan Report.

Docket No. 85-274-U Arkansas Oklahoma Gas Corporation (AOG)

On February 12, 2019, AOG filed a Motion to Discontinue Filing Annual Analysis of Gross and Net Salvage (Motion). On February 28, 2019, the Commission issued Order No. 4 granting AOG’s Motion and directing the Company to maintain the data in a readily available format.

WATER

Docket No. 19-015-U Liberty Utilities (Pine Bluff Water) Inc. (Liberty-Pine Bluff)

On April 4, 2019, the Attorney General (AG) filed an Application seeking a declaratory order from the Commission finding that Liberty Utilities, its affiliates, subsidiaries, and joint operations is a public utility as the term is defined by Arkansas statute, determining and clarifying the jurisdictional scope of Liberty’s regulated operations, the initiation of a process to establish just and reasonable rates, and consequent remedial action for any willful violation of Arkansas law, including the failure to obtain a Certificate of Public Necessity and Convenience and for the unapproved acquisition or merger of a domestic public utility system.

On March 16, 2020, the Parties filed a Settlement Agreement with the Commission requesting that the Commission approve the Agreement as a reasonable resolution of all the issues raised in the AG’s Amended Application.

The case is currently pending before the Commission.

2019 Annual Report 63

Docket No. 19-064-U Liberty Utilities (Arkansas Water) Corp. (LUAW)

On November 8, 2019, LUAW filed a petition with the Commission to become a regulated public utility and for a Certificate of Public Convenience and Necessity to own and operate water and sewer facilities.

This docket is currently pending before the Commission.

Docket No. 18-054-TF Liberty Utilities (Pine Bluff Water) Inc. (Liberty-Pine Bluff)

Pursuant to the Commission’s Order No. 6 in Docket No. 18‐006‐U, Liberty‐Pine Bluﬀ filed a separate rider to eﬀectuate the refund of any reduction in revenue requirement not addressed elsewhere.

In January 2019, Liberty‐Pine Bluﬀ filed revisions to its Rider Tax Adjustment (Rider TA) due to changes in circumstances related to the withdrawal of its pending rate application and the continuation of Rider TA until new base rates become effective which reflect the decreased tax expense. On January 30, 2019, based on the testimony and exhibits filed by Liberty-Pine Bluff and Staff, the Commission approved the revisions to Rider TA in its Order No. 3.

On December 31, 2019, Liberty-Pine Bluff filed its testimony and exhibits supporting the company’s annual rate redetermination of its TA Rider Attachment A.

This matter is pending before the Commission.

SEWER

There were no sewer companies jurisdictional to the Commission during 2019.

64 2019 Annual Report

TELECOMMUNICATIONS

Eligible Telecommunication Carriers (ETCs)

During 2019, the following seven applications for designation as an ETC were considered. There were no requests to relinquish designation as an ETC.

Docket No. 18-024-U OzarksGo, LLC

OzarksGo, LLC submitted an Application requesting designation as an ETC in September 2018 in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in January 2019 and designated OzarksGo, LLC as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

Docket No. 18-041-U Wave Rural Connect, LLC

Wave Rural Connect, LLC submitted an Application requesting designation as an ETC in September 2018 in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in January 2019 and designated Wave Rural Connect, LLC as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

Docket No. 18-062-U South Central Connect, LLC

South Central Connect, LLC submitted an Application requesting designation as an ETC in September 2018 in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in January 2019 and designated South Central Connect, LLC as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

2019 Annual Report 65

Docket No. 18-063-U NEXT, Powered by NAEC, LLC

NEXT, Powered by NAEC, LLC submitted an Application requesting designation as an ETC in September 2018 in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in January 2019 and designated NEXT, Powered by NAEC, LLC as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

Docket No. 18-068-U 3E8 Broadband Solutions, LLC, d/b/a empower, Delivered by Craighead Electric

3E8 Broadband Solutions, LLC, d/b/a empower, Delivered by Craighead Electric submitted an Application requesting designation as an ETC in September 2018 in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in January 2019 and designated 3E8 Broadband Solutions, LLC, d/b/a empower, Delivered by Craighead Electric as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

Docket No. 18-075-U Aristotle Unified Communications, LLC

Aristotle Unified Communications, LLC, submitted an Application requesting designation as an ETC in November 2018 in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in January 2019 and designated Aristotle Unified Communications, LLC as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

Docket No. 18-078-U Wisper ISP, Inc.

Wisper ISP, Inc., submitted an Application requesting designation as an ETC in December 2018

66 2019 Annual Report

in order to be eligible to receive support through the Connect America Fund Phase 2 auction.

The Commission granted the Application in February 2019 and designated Wisper ISP, Inc. as an ETC to receive federal high-cost and low-income support for the services in the area identified in its Application.

Certificates of Convenience and Necessity (CCNs), Interconnection Agreements, and Numbering Resources

Docket No. 19-006-U Wisper ISP, Inc.

In January 2019, Wisper ISP, Inc. filed an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas.

Commission approval is pending Wisper ISP Inc.'s submission of an Interconnection Agreement.

Docket No. 19-007-U Southwest Arkansas Telephone Cooperative, Inc.

In January 2019, Southwest Arkansas Telephone Cooperative, Inc. filed an Application for approval of an Interconnection Agreement with Level 3 Communications, LLC.

This matter was approved by the Commission in April 2019.

Docket No. 19-009-U Vero Fiber Network, LLC

In February 2019, Vero Fiber Network, LLC filed an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas.

This matter was approved by the Commission in August 2019.

2019 Annual Report 67

Docket No. 19-010-U Blue Casa Telephone, LLC

In March 2019, Blue Casa Telephone, LLC filed an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas.

Commission approval is pending Blue Casa Telephone, LLC's submission of an Interconnection Agreement.

Docket No. 19-012-U Central Arkansas Telephone Cooperative, Inc.

In March 2019, Central Arkansas Telephone Cooperative, Inc. filed an Application for approval of an Interconnection Agreement with Level 3 Communications, LLC.

This matter was approved by the Commission in May 2019.

Docket No. 19-021-U Windstream Arkansas, LLC

In May 2019, Windstream Arkansas, LLC filed an Application for approval of an Interconnection Agreement with Onvoy, LLC-AR.

This matter was approved by the Commission in July 2019.

Docket No. 19-022-U Valor Telecommunications of Texas, LLC d/b/a Windstream Communications Southwest

In May 2019, Valor Telecommunications of Texas, LLC d/b/a Windstream Communications Southwest filed an Application for approval of an Interconnection Agreement with E. Ritter Communications, Inc., d/b/a Ritter Communications, Inc.

The Commission in July 2019 approved this matter.

68 2019 Annual Report

Docket No. 19-024-U Windstream Arkansas, LLC

In May 2019, Windstream Arkansas, LLC filed an Application for approval of an Interconnection Agreement with Onvoy, LLC.

This matter was approved by the Commission in July 2019.

Docket No. 19-026-U Vero Fiber Networks, LLC

In May 2019, Vero Fiber Networks, LLC filed an Application for approval of an Interconnection Agreement with CenturyTel of Arkansas, Inc.

This matter was approved by the Commission in July 2019.

Docket No. 19-029-U The CenturyLink Companies

In June 2019, CenturyTel of Central Arkansas, LLC, d/b/a CenturyLink; CenturyTel of Northwest Arkansas, LLC, d/b/a CenturyLink; CenturyTel of Mountain Home, Inc., d/b/a CenturyLink; CenturyTel of Arkansas, Inc., d/b/a CenturyLink; CenturyTel of Redfield, Inc., d/b/a CenturyLink; CenturyTel of South Arkansas, Inc., d/b/a CenturyLink filed an Application for Approval of an Interconnection Agreement with CSC Wireless, LLC d/b/a Altice Mobile.

This matter was approved by the Commission in September 2019.

Docket No. 19-034-U RTC Solutions, Inc.

In July 2019, RTC Solutions, Inc. filed an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas.

This matter is pending before the Commission.

2019 Annual Report 69

Docket No. 19-038-U Missouri Network Alliance, LLC

In July 2019, Missouri Network Alliance, LLC filed an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas.

Commission approval is pending Missouri Network Alliance, LLC's submission of an Interconnection Agreement.

Docket No. 19-039-U CSC Wireless, LLC d/b/a Altice Mobile

In July 2019, CSC Wireless, LLC d/b/a Altice Mobile submitted an application for approval of a commercial mobile radio services Interconnection Agreement with Southwestern Bell Telephone Company d/b/a AT&T Arkansas.

The Commission in September 2019 approved this matter.

Docket No. 19-040-U Time Warner Cable Business, LLC

In July 2019, Time Warner Cable Business, LLC submitted an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas.

This matter was approved by the Commission in November 2019.

Docket No. 19-045-U Madison County Telephone Company

In August 2019, Madison County Telephone Company filed an Application for approval of an Interconnection Agreement with Level 3 Communications, LLC.

This matter was approved by the Commission in September 2019.

70 2019 Annual Report

Docket No. 19-052-U Combined Public Communications, LLC

In September 2019, Combined Public Communications, LLC submitted an Application for a Certificate of Public Convenience and Necessity to provide telephone service in Arkansas. Staff recommended approval in December 2019.

This matter is pending approval by the Commission.

Docket No. 19-058-U WANRack, LLC

In September 2019, WANRack, LLC filed an Application for approval of an Interconnection Agreement with Southwestern Bell Telephone Company d/b/a AT&T Arkansas.

This matter was approved by the Commission in October 2019.

Docket No. 19-059-U Teleport Communications America, LLC

In September 2019, Teleport Communications America, LLC filed an Application to reverse the decision of Somos, Inc., (Pooling Administrator) denying a series of three, Thousands Block, Applications to use in the Bentonville rate center by Walmart.

The Commission in October 2019 reversed this matter.

Docket No. 19-060-U E Ritter, Communications, Inc. d/b/a Ritter Communications Inc.

In September 2019, E Ritter, Communications, Inc. d/b/a Ritter Communications Inc., filed an Application to reverse the decision of Somos, Inc.’s, (Pooling Administrator) denial to assign of two growth blocks in the Hot Springs, Arkansas rate center for assignment to a dedicated commercial customer.

This matter was reversed by the Commission in October 2019.

2019 Annual Report 71

Docket No. 19-067-U RTC Solutions, Inc.

In November 2019, RTC Solutions, Inc., filed an Application for approval of an Interconnection Agreement with Southwestern Bell Telephone Company d/b/a AT&T Arkansas.

This matter is pending before the Commission.

TRANSPORTATION NETWORK COMPANY

(TNC)

During 2019, there were two companies operating as a TNC in the state and no new applications were filed for authority to operate as a TNC.

72 2019 Annual Report

SECTION 5

COMMISSION REVIEW OF UTILITY OPERATIONS

In addition to performing investigations in conjunction with dockets initiated at the Commission, Staﬀ conduct ongoing investigations of natural gas pipeline safety, utility quality of service, and the use of adjustment clause recovery mechanisms, as outlined below.

Compliance Audits

Under the authority of Arkansas Code Annotated §23‐4‐108, public utilities apply adjustment clauses, as approved by the Commission, to certain charges collected from ratepayers. Electric and gas utilities currently apply adjustments to the charges recovered from their ratepayers for the cost of fuel and energy efficiency; electric distribution cooperatives for the cost of debt; and water utilities for the cost of pumping. Staff conducts periodic compliance audits of the underlying costs reflected in these adjustments to ensure that the adjustment amounts and their recovery are in compliance with utility tariffs as approved by the Commission.

Electric Quality of Service Reviews

Staff members perform quality of service inspections of the electric cooperatives and investor‐owned utilities to ensure compliance with the Commission’s General Service Rules and its Special Rules ‐ Electric. Quality of service is measured against the standards established by the Commission in those rules. The standards cover items such as the acceptable range of secondary voltages provided to customers; the minimization of electrical conductive and inductive effects; the mapping and maintenance of transmission and distribution facilities including pole identification; right‐of‐way clearing; and substation record keeping. Staff members also examine complaint and outage records, meter testing facilities, and utility equipment. Additionally, Staff members provide technical assistance investigating consumer complaints of inadequate service.

Gas Pipeline Safety Inspections

Pursuant to an agreement, the U. S. Department of Transportation and the authority granted by the Arkansas Natural Gas Pipeline Safety Act of 1971, the Pipeline Safety Oﬃce inspected numerous intrastate natural gas operators and master metered gas systems for quality control of operating safety, gas leakage, and control of corrosion. The inspections evaluate gas operator compliance with the Arkansas Gas Pipeline Code. Accidents related to natural gas are investigated and reports are prepared to ensure compliance with all Commission standards of quality and safety.

2019 Annual Report 73

During 2019, the Pipeline Safety Staﬀ performed 60 pipeline safety inspections and 206 inspections of master meter systems. Corrections of reported deficiencies are monitored until completed. In addition to required inspections, Pipeline Safety Staﬀ provide technical assistance investigating customer complaints of inadequate service quality.

Telecommunications Quality of Service Reviews

Where applicable, Staﬀ conduct ongoing evaluations of the quality of service provided by both Incumbent and Competitive Local Exchange Carriers in Arkansas. The Commission’s Telecommunications Providers Rules establish standards in areas that include:

1) noise and loss associated with customer lines and network circuits; 2) capacity and operations of switching machines; 3) methods and quality of new construction; 4) responses to requests for service connection; 5) restoration of service; and 6) general maintenance of facilities.

Additionally, Staﬀ members provide technical assistance investigating consumer complaints of inadequate service.

74 2019 Annual Report

SECTION 6 CONSUMER SERVICES

During 2019, 17,821 Arkansas customers contacted the Commission’s (Commission) Consumer Services Section regarding utility issues. Of the 17,821 contacts, 1,148 or 6 percent, were classified as informal complaints. Twenty percent of the contacts were customers requesting information or referral to another agency. Referrals to utilities, 11 percent of the contacts, were made consistent with the requirement of Arkansas Code Annotated §23‐3‐119 that “every complainant shall, before filing a complaint, make a good faith eﬀort to informally resolve with the respondent the situation complained of.”

Although complaints represent only 6 percent of all contacts through Consumer Services, they require significant amounts of time and resources. Complaints involve numerous contacts with utility personnel and Staﬀ members, as well as extensive research to ensure compliance with Commission rules and approved tariﬀs. Many also require additional technical analysis, field investigation, and written reports. Billing complaints continue to represent the greatest portion of complaints for each industry, followed by complaints regarding service quality and requests for service.

FORMAL COMPLAINTS

Docket No. 19-005-C In the Matter of a Complaint by Moses Cotton Against Entergy Arkansas, LLC (EAL)

In January 2019, a residential customer, Moses Cotton, filed a complaint against EAL regarding high electric bills and testing of the meter at his premises. In its answer to the complaint, EAL stated that the meter had been tested, the results were within the Commission’s prescribed standards for meter accuracy, and requested the complaint be dismissed.

Order No. 2, issued on March 11, 2019, dismissed the complaint with prejudice based on the fact the meter tested within the Commission’s prescribed standards.

2019 Annual Report 75

Docket No. 19-030-C In the Matter of a Complaint by Kelly Chandler Against Entergy Arkansas, LLC (EAL)

In June 2019, a residential customer, Kelly Chandler, filed a complaint against EAL, regarding high bills.

On July 2, 2019, the complainant filed a request to withdraw his complaint stating the customer and EAL had reached a resolution of his issue.

Docket No. 19-037-C In the Matter of a Complaint by Jaqoub Vartenian Against Entergy Arkansas, LLC (EAL)

In July 2018, a residential customer, Jaquob Vartenian, filed a complaint against EAL alleging overcharges for electric usage caused by an extender dial and the electric meter registering different meter readings. The complainant requested a refund of amounts overcharged.

A hearing was held in this matter on October 15, 2019. Order No. 3, issued on October 21, 2019, granted a refund of $2,418.07 calculated by EAL and given to the complainant.

Docket No. 18-059-C In the Matter of a Complaint by Billy A. Fewell Against CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Arkansas Gas (CEA)

In September 2018, a residential customer, Billy A. Fewell, filed a complaint against CEA regarding equipment replacement and an alleged billing error. The Company’s response filed on October 10, 2018 asked for dismissal based on the fact that the Complainant’s requested method of recalculation of his bill was inconsistent with the requirements of the Commission’s General Service Rules.

76 2019 Annual Report

In Order No. 2, issued on January 14, 2019, the Administrative Law Judge agreed with CEA and granted the motion to dismiss with prejudice.

COMPLIANCE REVIEWS

Consumer Services fields numerous calls from utility personnel with questions regarding proper application of the Commission’s General Service Rules (GSR). Since 2010, Consumer Services has published a quarterly newsletter for the customer service personnel of the utilities. Each newsletter highlights a specific section of the Commission’s GSR and Telecommunications Provider Rules and the proper application to utility customers and other current topics of interest. The rules and topics are determined by the number of customer complaints and questions from utilities received by Consumer Services.

Four newsletters were published in 2019 covering the topics of customer service, suspension of service, medical certificates, and exemptions from the Commission’s Rules.

INFORMAL COMPLAINT SUMMARY

The following tables provide the total written and verbal informal complaints by type and by industry for 2019.

WRITTEN INFORMAL COMPLAINTS

VERBAL INFORMAL COMPLAINTS

2019 Annual Report 77

2019 ELECTRIC INDUSTRY

Informal Complaints

2019 GAS INDUSTRY

Informal Complaints

2019 WATER INDUSTRY

Informal Complaints

78 2019 Annual Report

2019 TELEPHONE INDUSTRY

INCUMBENT AND COMPETITIVE LOCAL EXCHANGE CARRIERS

(ILECs AND CLECs) Informal Complaints

2019 TELEPHONE INDUSTRY INTEREXCHANGE CARRIERS (IXCs) PRIVATE PAY TELEPHONE PROVIDERS (PPTPs) Informal Complaints

2019 Annual Report 79

80 2019 Annual Report

SECTION 7

FEDERAL AGENCY AND FEDERAL COURT ACTIVITY

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

The Commission (APSC) participates in proceedings before the FERC and the federal courts that aﬀect federal‐state jurisdictional oversight, cost allocation, and related issues.

Listed below are the federal proceedings in which the APSC participated in 2019.

ELECTRIC INDUSTRY

Docket Nos. EL19-90; EL19-91; and EL19-92 ISO New England, Inc. (ISO-NE); PJM Interconnection, LLC (PJM); and Southwest Power Pool, Inc. (SPP)

On October 17, 2019, FERC issued an order instituting proceedings to consider whether ISO- NE, PJM, and SPP have been implementing the exemption for immediate need reliability projects in a manner that is inconsistent with what FERC directed. APSC intervened on November 1, 2019.

This proceeding is pending before the FERC.

Docket No. ER20-42 Midcontinent Independent System Operator (MISO)

On October 4, 2019, MISO submitted proposed revisions to its Open Access Transmission, Energy and Operating Reserve Market Tariffs, regarding the market procurement of Short- Term Reserve. APSC has intervened in this Docket. A number of other parties have filed comments and/or protests.

This proceeding is pending before the FERC.

2019 Annual Report 81

Docket No. EL19-79 LSP Transmission Holdings, LLC

On June 4, 2019, LSP Transmission Holdings, LLC filed a Complaint against Midcontinent Independent System Operator for deficiencies in its Market Efficiency Project Planning. APSC intervened on June 21, 2019. A number of other parties have filed comments and/or protests.

This proceeding is pending before the FERC.

Docket No. EL19-60 City of Prescott

On April 5, 2019, the City of Prescott, Arkansas filed a Section 206 complaint against Southwestern Electric Power Company and Midcontinent Independent System Operator, alleging that the Amended Power Supply Agreement between the parties contains unjust, unreasonable, and discriminatory provisions. APSC intervened on April 23, 2019.

On September 19, 2019, FERC issued an order establishing hearing and settlement judge procedures. A settlement judge has been designated for this Docket and settlement proceedings are ongoing.

This proceeding is pending before the FERC.

Docket No. EL19-62 City Utilities of Springfield, Missouri (City)

On April 12, 2019, the City filed a Section 206 complaint against Southwest Power Pool, Inc. (SPP) alleging that the cost allocation method utilized in SPP’s Open Access Transmission Tariff affirmatively harms the City by allocating costs that vastly exceeds benefits. APSC intervened on April 23, 2019.

On August 12, 2019, FERC issued an order denying the City’s Complaint against SPP. On September 11, 2019, the City filed a Request for Rehearing and Clarification of FERC’s Order. FERC granted the Request on October 11, 2019.

This proceeding is pending before the FERC.

82 2019 Annual Report

Docket No. ER19-50 Louisiana Public Service Commission (LPSC)

On February 27, 2019, LPSC filed a complaint against Entergy Services, LLC (ESL), alleging that Entergy Arkansas, LLC (EAL) engaged in sales of low-cost energy to unaffiliated third parties from 2000 to 2005 in violation of the Entergy System Agreement. LPSC contends that these “Packaged Sales” benefited EAL’s shareholders to the detriment of its ratepayers. This complaint is related to the issues previously litigated in FERC Docket No. EL09-61, which concerned EAL’s opportunity sales from baseload during 2000 to 2009. APSC intervened in this matter on March 6, 2019. Mississippi Public Service Commission and Council of the City of New Orleans have intervened as well.

On March 19, 2019, APSC filed a protest, while EAL filed an Answer and Motion to Dismiss. On November 21, 2019, FERC issued an order denying LPSC’s Complaint, holding that the Complaint was barred by a 2015 Settlement Agreement between the parties. On December 20, 2019, LPSC filed a Request for Rehearing.

This proceeding is pending before the FERC.

Docket No. ER19-1124 Midcontinent Independent System Operator (MISO)

On February 28, 2019, MISO submitted proposed revisions to its tariff that would significantly revise its Market Efficiency Projects. APSC intervened on March 7, 2019.

On June 24, 2019, FERC issued an order rejecting MISO’s proposed revisions, holding that MISO had not shown that its proposed cost allocation method for Local Economic Projects was just and reasonable.

Docket No. ER19-1156 Midcontinent Independent System Operator (MISO)

On February 28, 2019, MISO submitted amendments to its tariff proposing a cost allocation methodology for its share of the cost of certain Interregional Economic Projects with PJM Interconnection, LLC and Southwest Power Pool, Inc. The Commission intervened in this matter on March 14, 2019.

On June 24, 2019, FERC issued an order rejecting the proposed revisions, holding that the

2019 Annual Report 83

revisions rely on definitions and provisions that FERC rejected in Docket No. ER19-1124.

Docket No. ER19‐211 Entergy Services, LLC (ESL)

On October 29, 2018, ESL filed an unexecuted Joint Ownership and Operating Agreement (JOOA). The JOOA identifies the terms and conditions pursuant to which the Entergy Operating Companies will jointly own undivided interests in two Transmission Control Centers (TCC) and pursuant to which ESL will continue to provide TCC operations and maintenance services to the Entergy Operating Companies. The Commission has intervened, as have the Louisiana Public Service Commission (LPSC), the Mississippi Public Service Commission (MPSC), and the Council of the City of New Orleans.

On November 19, 2018, both LPSC and MPSC filed protests alleging that the JOOA conflicts with the Entergy Service Agreements already in place. MPSC also filed a motion to consolidate this Docket with Docket No. EC19‐18. On December 4, 2018, ESL filed a response to the protests, the LPSC filed a reply in support of the MPSC’s protest, and ESL filed a response opposing the MPSC’s motion to consolidate.

On September 30 2019, FERC issued an order accepting the JOOA to become effective on the date the Entergy Operating Companies acquire undivided ownership interests in the TCC from Entergy Services.

On October 30, 2019, MPSC and APSC filed a Joint Request for Clarification or in the Alternative, Rehearing, essentially asking the Commission to clarify that retail regulators have the authority to recover portions of the TCC costs at retail. That same day, LPSC filed a Request for Rehearing. On November 14, 2019, MPSC and APSC filed a Joint Motion for Leave to Respond, opposing LPSC’s Request for Rehearing. On November 26, 2019, FERC issued an order granting the Requests for Rehearing.

This proceeding is pending before the FERC.

Docket No. EC19‐18 Entergy Services, LLC (ESL)

On October 29, 2018, ESL made a filing concerning the transfer of ownership interests in two Transmission Control Centers from ESL to the Entergy Operating Companies. The APSC intervened in this matter, as have the Louisiana Public Service Commission (LPSC), the Mississippi Public Service Commission (MPSC), and the Council of the City of New Orleans.

84 2019 Annual Report

On November 19, 2018, both LPSC and MPSC filed protests alleging that ESL had failed to demonstrate that the proposed ownership transfer will not have an adverse eﬀect on rates at both the wholesale and retail levels. MPSC also filed a motion to consolidate this Docket with Docket No. ER19‐211. On December 4, 2018, ESL filed a response opposing the MPSC’s motion to consolidate and an answer to the protests.

On September 30, 2019, FERC issued an order authorizing the proposed transaction as consistent with the public interest.

On October 30, 2019, MPSC and the Commission filed a Joint Request for Clarification or in the Alternative, Rehearing, essentially asking the Commission to clarify that retail regulators have the authority to recover portions of the Transmission Control Centers costs at retail. That same day, LPSC filed a Request for Rehearing. On November 26, 2019, FERC issued an order granting the Requests for Rehearing.

This proceeding is pending before the FERC.

Docket No. EL18‐204 Louisiana Public Service Commission (LPSC)

On September 24, 2018, the LPSC filed a complaint against System Energy Resources, Inc. (SERI), claiming that SERI’s current capital structure is unjust given that it includes an equity ratio of 66 percent.

On October 3, 2018, the Commission intervened in this matter. On October 15, 2018, SERI filed a motion to dismiss the complaint, arguing that LPSC had previously litigated this issue. On October 30, 2018, LPSC filed an answer to SERI’s motion to dismiss. On November 13, 2018, SERI filed a reply in response to LPSC’s answer. On December 4, 2018, the LPSC filed a reply to SERI’s reply.

On January 17, 2019, FERC denied SERI’s motion to dismiss, and set the complaint for hearing and settlement procedures. On June 18, 2019, the Settlement Judge issued a final report recommending termination of settlement procedures. On June 20, 2019, the Chief Administrative Law Judge (ALJ) terminated settlement procedures and consolidated this Docket with EL18-142 (SERI ROE Docket).

This proceeding is pending before the FERC.

2019 Annual Report 85

Docket No. EL18‐201 Louisiana Public Service Commission (LPSC)

On September 19, 2018, the LPSC filed a complaint concerning Transmission Control Centers (TCC) that were recently built in Little Rock, Arkansas and Jackson, Mississippi, respectively. LPSC alleges that the failure of System Energy Resources, Inc. and Entergy Services, Inc. (ESI) to include 100 percent of the TCC costs in their Midcontinent Independent System Operator Attachment O expenses is unjust, unreasonable, and unduly discriminatory. On September 26, 2018, the Commission intervened in this Docket. ESI filed an answer to the complaint, requesting that the FERC either dismiss the complaint or hold it in abeyance.

On September 30, 2019, FERC issued an order granting the complaint in part. FERC found that the Entergy Operating Companies incorrectly accounted for the TCC costs as general plant depreciation instead of including them in transmission expense accounts. Accordingly, FERC has ordered the Entergy Operating Companies to correct their prior accounting to record all payments related to the depreciation of the TCC in a transmission expense account and recalculate their previously-calculated MISO Tariff Attachment O formula rates to reflect such accounting corrections.

This proceeding is pending before the FERC.

Docket No. EL18‐152 Louisiana Public Service Commission (LPSC)

On May 18, 2018, the LPSC filed a complaint against System Energy Resources, Inc. (SERI), alleging that it violated the filed rate and the FERC's ratemaking and accounting requirements in billing the costs of Grand Gulf Sale/Leaseback renewals through the formula rate contained in the Unit Power Sales Agreement (UPSA) between SERI and its aﬃliate companies. On May 29, 2018, the Commission intervened in this docket. On June 28, 2018, SERI filed a motion to dismiss, arguing that LPSC had not demonstrated a prima facie case of imprudence.

On September 20, 2018, FERC issued an order denying SERI’s motion to dismiss. On September 28, 2018, the Chief Administrative Law Judge (ALJ) appointed a Settlement Judge. After convening a settlement conference, the Settlement Judge recommended that the case be set for hearing and for the hearing proceeding to be initiated under a Track III schedule.

On November 27, 2018, the Chief ALJ issued an order adopting these recommendations and designating a Presiding Judge. A hearing was held from November 12, 2019 to November 26, 2019.

This proceeding is pending before the FERC.

86 2019 Annual Report

Docket No. ER18‐1182 System Energy Resources, Inc. (SERI)

On March 27, 2018, SERI submitted for filing limited amendments to the Unit Power Sales Agreement. The limited amendments address the eﬀects of the Tax Cuts and Jobs Act of 2017, which reduced the federal corporate income tax rate from 35 percent to 21 percent. SERI proposes to amend the Agreement to capture the excess Unprotected Deferred Income Tax (ADIT) resulting from the lower tax rate and flow the value back to SERI’s wholesale customers.

On April 2, 2018, the Commission intervened in this Docket. The Louisiana Public Service Commission, the Mississippi Public Service Commission, and the Council of the City of New Orleans have also intervened.

On May 31, 2018, the FERC issued an order accepting and suspending the proposed rate schedule revisions and establishing hearing and settlement judge procedures.

On June 8, 2018, the Chief Administrative Law Judge (ALJ) issued an order designating a Settlement Judge.

On November 16, 2018, the Settlement Judge scheduled a settlement conference for February 7, 2019. On April 23, 2019, the Settlement Judge issued an order recommending the termination of settlement proceedings. On April 30, 2019, the Chief ALJ issued an order designating a Presiding Judge. On May 21, 2019, the Presiding Judge issued an order establishing a procedural schedule.

This proceeding is pending before the FERC.

Docket No. EL18‐142 Louisiana Public Service Commission (LPSC)

On April 27, 2018, the LPSC filed a complaint against System Energy Resources, Inc. (SERI), claiming that SERI's current 10.94 percent return on equity (ROE) is excessive, that SERI's current capital structure is unjust given that it includes an equity ratio of 66 percent and that SERI's depreciation rates eﬀective October 1, 2017, as proposed, are excessive. The Commission intervened on May 9, 2018. SERI filed a motion to dismiss, while the APSC and LPSC filed a motion to consolidate this docket with Docket No. EL17‐41.

On August 24, 2018, the FERC ruled on the motion to dismiss, dismissing LPSC’s allegations concerning SERI’s capital structure and depreciation rates, but sustaining the allegations concerning ROE. Both LPSC and SERI sought a request for rehearing, which FERC granted. The

2019 Annual Report 87

Chief Administrative Law Judge (ALJ) granted the motion to consolidate.

On June 20, 2019, FERC issued an order denying SERI and LPSC’s separate rehearing requests; that same day, the Chief ALJ consolidated this Docket with EL18-204 (SERI Capital Structure Docket). On December 17, 2019, the Presiding Judge issued an order amending the procedural schedule to give the parties an opportunity to address FERC Opinion 569, which altered the ROE base rates for two Midcontinent Independent System Operator Inc. transmission owners.

This proceeding is pending before the FERC.

Docket Nos. EL17‐41, EL17‐93, and ER17‐2219 Arkansas Public Service Commission (APSC) and Mississippi Public Service Commission (MPSC)

On January 23, 2017, the APSC and the MPSC filed a Section 206 complaint at the FERC alleging that System Energy Resources, Inc.’s (SERI) (which has a majority ownership in the Grand Gulf nuclear plant) return on equity (ROE) is no longer just and reasonable. SERI filed an answer and a motion to dismiss which APSC and MPSC have answered.

In August 2017, SERI filed proposed tariﬀ revisions in FERC Docket ER17‐2219 to adjust its depreciation and decommissioning requirements. APSC, along with other state commissions, intervened in the docket and filed protests alleging that SERI’s depreciation study contained flaws that must be addressed.

On September 29, 2017, FERC entered an order consolidating the dockets and establishing hearing and settlement procedures.

The parties reached a settlement of the depreciation issues, which was approved by the Settlement Judge. SERI filed a Refund Report describing the process by which it refunded the amounts it collected via excessive depreciation rates from October 11, 2017 through August 31, 2018. The Refund Report states that SERI refunded $25.7 million dollars to its Operating Companies on October 19, 2018; Entergy Arkansas, Inc.’s (EAI) share of the refund is approximately $9.5 million. Pursuant to the 1985 Grand Gulf Settlement, Arkansas ratepayers will receive approximately 80 percent of the refund, and EAI shareholders will receive 20 percent.

88 2019 Annual Report

The ROE issues are still pending before FERC. Because this Docket has been consolidated with the Louisiana Public Service Commission’s complaint against SERI for the same ROE issues, please see the report for Docket No. EL18‐142.

This proceeding is pending before the FERC.

Docket No. EL17‐62 Midcontinent Independent System Operator, Inc. (MISO)

In April 2017, the MISO Independent Market Monitor (IMM) filed a Section 206 complaint against MISO seeking resolution to issues regarding pseudo‐ties between PJM Interconnection, LLC (PJM) and MISO. On April 17, 2017, the Commission filed a notice of intervention. Numerous other parties have filed to intervene.

On May 8, 2017, PJM filed a Motion to Dismiss and in the Alternative an Answer arguing that the FERC has never taken the position that an IMM cannot file a complaint. PJM also filed a notice of recent appellate precedent, arguing that the D.C. Circuit recently held that a market monitor does not have standing to intervene in a proceeding on judicial review of the FERC orders.

This proceeding is pending before the FERC.

Docket No. EL17‐76 East Texas Electric Cooperative, Inc. (ETEC)

In June 2017, the ETEC filed a complaint against Southwestern Electric Power Company and associated utilities under American Electric Power (collectively the AEP companies) alleging that the return on equity for the utilities is no longer just and reasonable. The APSC intervened. The AEP companies filed an answer and a Motion to Dismiss arguing that a demand for a new rate requires a showing that an existing rate is unlawful before ordering a new rate under Section 206.

In July 2017, ETEC and others supporting the complaint filed responses to the motion stating that AEP’s cost of equity has declined and that AEP companies are misconstruing the applicable legal standards.

In November 2017, FERC issued an order establishing settlement and hearing proceedings.

On April 30, 2018, the Chief Administrative Law Judge (ALJ) issued an order terminating settlement procedures and adopted the parties’ procedural schedule. The Chief ALJ has

2019 Annual Report 89

appointed a dispute resolution specialist to serve as a settlement facilitator. On May 3, 2019, the Presiding Judge issued a certification of uncontested settlement for FERC to review.

This proceeding is pending before the FERC.

Docket No. EL17‐89 American Electric Power Company, Inc. (AEP)

In September 2017, AEP on behalf of Southwestern Electric Power Company (SWEPCO) filed a complaint against Midcontinent Independent System Operator, Inc. (MISO) and Southwest Power Pool, Inc. (SPP). The complaint seeks to stop the assessment of duplicative congestion charges associated with SWEPCO loads that are pseudo‐tied from MISO to SPP. The Commission intervened in the docket.

In October 2017, SPP filed an answer stating that AEP alleges no violations of the SPP tariff or the Joint Operating Agreement (JOA). SPP further states in its answer that AEP does not seek a remedy from it. MISO filed its answer the same day and argued that MISO complied with its tariff and that AEP was fully aware of the charges required under the tariff. MISO also argued that AEP misconstrues statements in the JOA, as there is nothing that exempts pseudo‐tied loads like the one in question.

AEP responded to the answers from MISO and SPP on November 3, 2017, arguing that the JOA plays an important role in defining terms relevant to the issue at hand, that MISO’s cost shifting concerns are unpersuasive, and countered arguments regarding hedging made by MISO. On September 19, 2019, FERC denied AEP’s Complaint in part and set a briefing schedule to address the remaining issues.

This proceeding is pending before the FERC.

Docket Nos. EL10‐65, ER11‐3658, ER12‐1920, ER13‐1595, and ER14‐2085 Louisiana Public Service Commission (LPSC)

In May 2010, LPSC filed a complaint seeking six revisions to the MSS‐3 bandwidth formula, which would shift roughly $24 million in additional Entergy System costs to Arkansas ratepayers.

In December 2014, the FERC issued an order consolidating the Bandwidth proceedings ESI had filed in Docket Nos. ER11‐3658, ER12‐1920, ER13‐1595, and ER14‐2085 with the Bandwidth‐related complaint proceeding in Docket No. EL10‐65. FERC set the consolidated

90 2019 Annual Report

proceedings for hearing before a FERC Administrative Law Judge (ALJ). At hearing, the following questions were at issue: 1) whether the Sale/Leaseback of 9.3 percent of the Waterford 3 nuclear plant is a capital lease, whether Entergy has properly accounted for the Waterford 3 Sale/Leaseback Accumulated Deferred Income Taxes (ADIT) and whether Entergy should include the Waterford 3 Sale/Leaseback ADIT in the bandwidth formula; and 2) whether Entergy should include interruptible load in the fifth and sixth annual Allowance for Funds Used During Construction (AFUDC) for the River Bend nuclear facility in the bandwidth formula.

In her initial decision issued in July 2016, the FERC Administrative Law Judge (ALJ) ruled as follows: the undersigned finds that the Waterford 3 Sale/Leaseback ADIT should not be included in the Bandwidth Calculation; that interruptible load should remain in the system monthly Coincident Peaks for the 2010 and 2011 Bandwidth Calculations; that the Waterford 3 Sale/Leaseback is a financing transaction and that Entergy should implement Trial Staﬀ’s accounting change recommendations; and that the eﬀects of the change in the AFUDC required pursuant to LPSC Order No. U‐17282‐J have been correctly accounted for.

On September 28, 2016, the LPSC filed exceptions to the ALJ’s rulings. The Commission, Entergy, and FERC trial staﬀ opposed the exceptions filed by the LPSC.

On March 15, 2018, FERC issued Opinion No. 560, holding that 1) ADIT accrued from the Sale/Leaseback of Waterford 3 plant should not be included in the bandwidth formula and 2) that LPSC is not eligible for a refund for the 2010 and 2011 bandwidth years.

On April 16, 2018, LPSC filed a Request for Rehearing and FERC granted the Request on May 14, 2018.

This proceeding is pending before the FERC.

Docket No. EL01‐88 Entergy Services, Inc. (ESI)

This proceeding involves the establishment of the +/‐ 11 percent Rough Production Cost Equalization (RPCE) bandwidth formula for sharing of production costs among the Entergy Operating Companies of the system average. The FERC ordered the bandwidth remedy to take eﬀect on January 1, 2006, but declined to order refunds. The RPCE bandwidth formula has been upheld by the FERC and the Court. There have been numerous hearings and appeals in this case. However, the issues now remaining concern 1) FERC's denial of retroactive refunds and 2) the appropriate date for implementation of the bandwidth remedy.

2019 Annual Report 91

On April 29, 2014, as amended on May 7, 2014 and May 23, 2014, Entergy submitted a compliance filing to calculate bandwidth payments and receipts for the seven‐month period of June 1, 2005 through December 31, 2005. The Commission opposed Entergy’s compliance filing because it provided that Entergy Arkansas, Inc. (EAI) would make post‐exit bandwidth payments, even though EAI had withdrawn from the Entergy System Agreement eﬀective December 19, 2013.

On October 15, 2015, FERC issued an order setting Entergy’s compliance filing(s) for hearing. In that order, FERC rejected the APSC’s argument that EAI has no post‐exit obligation for bandwidth payments.

On November 13, 2015, the APSC sought rehearing of that ruling. On April 29, 2016, FERC issued an order rejecting the APSC’s request for rehearing. The APSC thereafter filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit, as discussed below. Meanwhile, the parties filed the direct testimonies, answering testimonies, cross‐answering testimonies, and rebuttal testimonies of their respective witnesses.

On June 29, 2016, Entergy filed a joint oﬀer of partial settlement. ESI filed a Motion for Partial Summary Disposition and Motion to Strike Portions of Testimony of the Louisiana Public Service Commission (LPSC). The parties filed a Joint Statement of Contested Issues and Positions of the Parties. The hearing before a FERC Administrative Law Judge (ALJ) was held July 26, 2016 through July 28, 2016. On July 28, 2016, the Presiding Judge granted ESI’s motion for partial summary judgment. On August 9, 2016, FERC issued a letter order approving the Joint Oﬀer of a Partial Settlement Agreement filed by ESI.

LPSC and ESI filed Briefs on Exceptions to the Partial Initial Decision in September 2016. ESI, APSC, and FERC Trial Staﬀ filed Briefs Opposing Exceptions in October. On October 13, 2016, a post‐hearing oral argument was heard on limited issues. The Presiding Judge issued his Initial Decision on November 7, 2016, addressing specifics regarding the bandwidth calculations. On December 21, 2016, ESI, FERC Trial Staﬀ, and the LPSC filed Brief on Exceptions to the Initial Decision.

As noted above, the APSC filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit [APSC vs. FERC, Case No. 16‐1193] of FERC’s ruling that Entergy Arkansas, Inc.’s withdrawal from the Entergy System Agreement had not extinguished EAI’s liability for additional bandwidth payments. On January 30, 2018, the D.C. Circuit denied APSC’s petition for review.

On May 17, 2018, FERC issued an order affirming the Presiding Judge’s Initial Decision. LPSC filed a rehearing request on June 18, 2018, which was granted by FERC on July 16, 2018.

On May 20, 2018, FERC issued an order setting a paper hearing on the issue of whether refunds are appropriate. APSC and ESI filed separate Briefs opposing the issuance of refunds, while LPSC filed a Brief in support.

92 2019 Annual Report

On November 21, 2019, FERC issued an order finding that refunds are not appropriate given the circumstances of this case.

This proceeding is pending before the FERC.

GAS INDUSTRY

Docket No. RP20-131 Enable Mississippi River Transmission, LLC (MRT)

On October 30, 2019, MRT filed a rate case seeking to increase rates for the 3 percent of subscribed firm transmission and storage service entitlement holders that did not settle with MRT in FERC Docket No. RP20-131. Thus far, APSC, Missouri Public Service Commission, and CenterPoint Energy Resources Corp. have intervened.

On November 20, 2019, MRT filed a motion seeking to place the proceedings on a settlement track. On November 26, 2019, FERC issued an order accepting and suspending the tariff records subject to refund and establishing hearing procedures.

This proceeding is pending before the FERC.

Docket No. RP19‐343 Texas Eastern Transmission, LP (TETCO)

On November 13, 2018, Texas Eastern Transmission, LP (TETCO) filed an application to increase its revenues by approximately $364 million. The company is seeking a return on equity of 14.50 percent and an average increase in its FTS‐1 reservation rates of approximately 42.53 percent. TETCO’s last rate case with the FERC was almost 30 years ago. The Commission has intervened, as have Black Hills Energy Arkansas, Entergy Services, and CenterPoint Energy Resources. A number of other parties have intervened and filed protests. TETCO has filed several answers to the protests.

On December 31, 2018, FERC issued an order accepting and suspending TETCO’s revised tariﬀ records. On January 2, 2019, the Chief Administrative Law Judge assigned a Presiding Judge to this matter. On October 28, 2019, TETCO filed a proposed settlement to resolve the rate case. As of December 2019, the settlement was unopposed.

2019 Annual Report 93

This proceeding is pending before the FERC.

Docket No. RP19‐79 Enable Gas Transmission, LLC (Enable)

On October 11, 2018, Enable filed FERC Form No. 501‐G, which is a one‐time report on the rate eﬀect of the Tax Cuts and Jobs Act required by FERC Order 849. Enable claims the 501‐G and Addendum that it filed demonstrates that no rate reduction is warranted. The Commission has intervened, as have Black Hills Utility Holdings, Inc., CenterPoint Energy Resources, and Entergy Arkansas, Inc. A number of parties have filed protests and comments, which Enable has responded to via an answer.

On March 8, 2019, FERC issued an order terminating this proceeding.

Docket No. RP18‐923 Enable Mississippi River Transmission, LLC (MRT)

On June 29, 2018, MRT filed a general rate case application seeking a significant increase in its rates.

On July 31, 2018, the FERC issued an initial order on MRT’s filing ordering the maximum suspension period for the proposed increased rates and commencement of initial settlement discussions. In its order, FERC rejected MRT’s exclusion of Spire’s contract volumes and also rejected MRT’s proposed income tax adjustment. FERC has agreed to a rehearing on the issue of MRT’s proposed income tax adjustment. The Chief Administrative Law Judge (ALJ) has designated a Settlement Judge to preside over settlement discussions. The parties have engaged in settlement discussions and have participated in a technical conference.

On December 7, 2018, FERC issued an order directing MRT to file (within ten days of the order) revised tariff records consistent with its pro forma submission, to be effective January 1, 2019, at the end of the suspension period. FERC stated that those tariffs will remain subject to refund and the outcome of the hearing, technical conference, and settlement procedures. On December 17, 2018, MRT filed revised tariff records in accordance with FERC’s Order. On December 31, 2018, FERC issued an order setting various proposals raised during the technical conference for hearing. On May 16, 2019, FERC issued an order accepting the revised tariff records MRT submitted on December 17, 2018 to become effective on January 1, 2019. On November 5, 2019, MRT filed its Stipulation and Agreement to settle this matter. As of December 2019, the settlement was unopposed.

This proceeding is pending before the FERC.

94 2019 Annual Report

FEDERAL COURT CASES

D.C. Circuit No. 19-1168 System Energy Resources, Incorporated (SERI) vs. Federal Energy Regulatory Commission (FERC) (EL18-142; EL17-41; EL18-204)

On August 19, 2019, SERI filed a Petition for Review before the D.C. Circuit, seeking a review of FERC’s August 24, 2018 denial of SERI’s Motion to Dismiss filed in LPSC v. SERI, Docket No. EL18-142; APSC & MPSC v. SERI, Docket No. EL17-41; LPSC v. SERI, Docket No. EL18-204 (SERI ROE and Capital Structure Docket).

On September 17, 2019, FERC filed a Motion to Dismiss the Petition, arguing that the Petition seeks review of non-final FERC orders in an ongoing FERC proceeding set for hearing. That same day, SERI filed a Motion to Hold the Proceeding in Abeyance, seeking to stay proceedings while the D.C. Circuit resolves a similar issue on appeal. On September 18, 2019, the APSC informed the D.C. Circuit via a letter that it supports FERC’s Motion to Dismiss, but does not oppose holding this matter in abeyance should the Motion to Dismiss be denied.

On September 27, 2019, SERI filed a Motion for Voluntary Dismissal Without Prejudice of its Petition.

D.C. Circuit No. 18‐1009 Arkansas Public Service Commission (APSC) vs. Federal Energy Regulatory Commission (FERC) (EL09‐61)

On January 10, 2018, APSC filed its appeal of FERC Opinion Nos. 548 and 548‐A entered in FERC Docket No. EL09‐61, which concerns issues relating to refunds associated with “opportunity sales” Entergy Arkansas made to third parties during the 2000s.

2019 Annual Report 95

The D.C. Circuit has ordered that the appeal be held in abeyance pending further proceedings before FERC.

D.C. Circuit No. 17‐1251 Entergy Services, Inc. (ESI) vs. Federal Energy Regulatory Commission (FERC) (EL09‐61)

ESI filed its appeal of FERC Opinion Nos. 521, 521‐A, 548, and 548‐A entered in FERC Docket No. EL09‐61. Entergy is challenging the FERC orders that adopt the calculation methodology for the damages oﬀset proposed by the Mississippi Public Service Commission and the Louisiana Public Service Commission.

The D.C. Circuit has ordered that the appeal be held in abeyance pending further proceedings before FERC.

96 2019 Annual Report

SECTION 8

NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS

(NARUC)

NARUC is a nonprofit organization founded in 1889. NARUC membership is composed of the governmental agencies that are engaged in the regulation of utilities and carriers in the fifty states, the District of Columbia, Puerto Rico, and the Virgin Islands. NARUC’s mission is to serve the public interest by improving the quality and eﬀectiveness of public utility regulation.

NARUC operates through committees and subcommittees. Those groups advance regulation through study and discussion of the operation and supervision of public utilities and promoting coordinated action by the commissions.

The Commission is currently represented by the following committee and subcommittee assignments.

Commissioners

Ted J. Thomas ‐ Committee on Electricity

Kimberly A. O’Guinn ‐ Executive Committee and the Board of Directors, Committee on Energy Resources and the Environment, Committee on International Relations, Washington Action Committee

Justin Tate ‐ Committee on Gas

Commissioners’ Staﬀ

Valerie Boyce ‐ Staﬀ Subcommittee on Administrative Law Judges, Staﬀ Subcommittee on Law

Walter Nixon III ‐ Staﬀ Subcommittee on Energy Resources and the Environment

Connie Griffin ‐ Staﬀ Subcommittee on Telecommunications

Ron Garner ‐ Staﬀ Subcommittee on Gas

Regis Powell ‐ Staﬀ Subcommittee on Electricity

Bill Mathis ‐ Staﬀ Subcommittee on Information Services

General Staﬀ

Donna Gray ‐ Staﬀ Subcommittee on Executive Management

Jeﬀ Hilton ‐ Staﬀ Subcommittee on Accounting and Finance

Robert E. Henry ‐ Staﬀ Subcommittee on Pipeline Safety

Regina Butler ‐ Staﬀ Subcommittee on Electricity

2019 Annual Report 97

98 2019 Annual Report

APPENDIX A

JURISDICTIONAL UTILITIES AND OPERATORS

During 2019, the Commission carried out its statutory obligation to review and regulate the rates and/or practices of utility companies and operators. The utilities and operators under the Commission's jurisdiction in 2019 are listed below:

JURISDICTIONAL UTILITIES AND OPERATORS

Investor-Owned Electric Utilities (IOUs)

Entergy Arkansas, LLC Oklahoma Gas and Electric Company Southwestern Electric Power Company The Empire District Electric Company

Four IOUs were under the Commission's jurisdiction during 2019.

2019 Annual Report 99

Electric Cooperatives

Arkansas Electric Cooperative Corporation Arkansas Valley Electric Cooperative Corporation Ashley-Chicot Electric Cooperative, Inc. C & L Electric Cooperative Corporation Carroll Electric Cooperative Corporation Clay County Electric Cooperative Corporation Craighead Electric Cooperative Corporation Farmers Electric Cooperative Corporation First Electric Cooperative Corporation Mississippi County Electric Cooperative, Inc. North Arkansas Electric Cooperative, Inc. Ouachita Electric Cooperative Corporation Ozarks Electric Cooperative Corporation Petit Jean Electric Cooperative Corporation Rich Mountain Electric Cooperative, Inc. South Central Arkansas Electric Cooperative, Inc. Southwest Arkansas Electric Cooperative Corporation Woodruff Electric Cooperative Corporation

Eighteen electric cooperatives were under the Commission's jurisdiction during 2019: one generation and transmission cooperative (Arkansas Electric Cooperative Corporation) and 17 distribution electric cooperatives.

Regional Transmission Organizations (RTOs)

Southwest Power Pool, Inc.* Midcontinent Independent System Operator, Inc.*

*All revenues are FERC jurisdictional only

Two RTOs were under the Commission's jurisdiction during 2019.

Gas Utilities

Arkansas Oklahoma Gas Corporation Black Hills Energy Arkansas, Inc. CenterPoint Energy Arkansas Gas Logan Township Gas Users Association

Four gas utilities were under the Commission's jurisdiction during 2019: three investor-owned

100 2019 Annual Report

utilities and one users association.

Natural Gas Operators

Acme Brick Company Albemarle Corporation Augusta City Light, Water and Gas Cambrian/SouthTex City of Little Rock Solid Waste Services Crestwood Midstream Partners, LP DeValls Bluﬀ Natural Gas System Des Arc Municipal Gas Enable Midstream Partners, LP Enbridge Pipelines, LP Enmark Energy, Inc. Gateway Red Oak, LLC Great Lakes Chemical Corporation Harrisburg Water and Gas Division Hazen Natural Gas Company Ingevity Corporation Jonesboro City Water & Light North Crossett Utilities Tucker Energy Solutions University of Arkansas

Twenty natural gas operators were under the Commission's jurisdiction during 2019.

Master Meter Gas Operators

Alexander Apartments, LLC Alpha Barns Real Estate Alpha Property Management, Inc. AMG Realty Group American Family Communities, LLC Arkoma, Inc. Asset Plus Companies Associated Management, LTD Augusta Housing Authority Bald Knob Housing Authority Bald Knob Apartments Bart Gray Realty Batesville Housing Authority BBR Oil, LLC

2019 Annual Report 101

Master Meter Gas Operators

Beacon Circle Beebe Housing Authority Beztak Bloom Management Inc. Bob Anderson Bogle Properties Brinkley Housing Authority Broad Management Group BSR Trust Cabin Court (Bentonville) Camden Housing Authority Chateau Rental Properties, LLC CIC Arms Apartments Civitan Apartments Clarendon Housing Authority Coﬀman Investments Colonial Arms Apartments Con Ivie Gardens Cotton Plant Housing Authority Country Oaks Village Mobile Home Park Dan Epperly Danny and Jodi Jones Dardanelle Housing Authority Davis RE DD & M Contractors, LTD Des Arc Housing Authority Earle Housing Authority Elevation Real Estate and Management Farmington Hills Ferguson Property Group, Inc. First Capital Residential, LLC Forrest City Housing Authority Green Elf Court Grelbriche Properties, LLC GRI Investments Hickory Ridge Housing Authority Hidden Pines Hilltop Mobile Home Park Houses, Inc. Hudson Realty Company Hudson Rental Properties Hughes Housing Authority

102 2019 Annual Report

Master Meter Gas Operators

Independent Management Services Indian Hills MHP, LLC Integra Aﬀordable Management Intrepid Management J & J Enterprises JCH Properties, LLC Johnny Bradley, Sr. K P Properties Krebs Rentals L & A Melgar, LLC Apartments Landmark REI Lex Group Inc. Lynd Management Company Mabelvale Rose, LLC Mammoth Springs Housing Authority Manila Housing Authority Marshall Equity Investments, LLC McCrory Housing Authority MDFO Properties, LLC Midway Park Millenia Housing Management Co. Moore and Company Realtors Moses Tucker Real Estate Moxie Holdings, LLC Neighbors of Colonial Estates LLC Neighbors of Dixieland MHP LLC Newport Housing Authority Niblock Investments, LLC O’Reilly Management Services, LLC Painter's Mobile Home Park Paragould Housing Authority Parkin Housing Authority Perfect Harmony, LLC PHD Investments Pine Meadow Trailer Park Polk County Housing Authority Professional Property Management, Inc. Rector Housing Authority Rector Phillips Morse Rental Management Inc. RHP Properties Rich Smith Management

2019 Annual Report 103

Master Meter Gas Operators

Rutherford Mobile Home Park Salem Housing Authority Sosa Properties Specialized Real Estate Group Stanley Holdings Group LLC Stoneriver Properties Sugarloaf Trailer Park Sulcer Real Estate Rentals Sunwise, LLC Susan and Kenneth Kilgore Sweetser Properties Tara, LLC Tesco Properties The Walden Group Timberview Estates MHC, LLC Tower Management LLC Town and Country Mobile Home Park Trailwood Mobile Home Park Trent Management Group Trinity Property Management Trumann Housing Authority United Apartment Group W‐7 Mobile Home Park Warren Housing Authority Werp, LLC Westpark Meadows Apartments Westwood Village Apartments Wilbur's Mobile Home Park Woodcreek, Inc. Woodridge Estates

One hundred twenty-eight master meter gas operators were under the Commission's jurisdiction during 2019.

Water Utilities

Liberty Utilities (Pine Bluﬀ Water) Inc.

One water company was under the Commission's jurisdiction during 2019.

104 2019 Annual Report

Sewer Utilities

No sewer companies were under the Commission's jurisdiction during 2019.

Incumbent Local Exchange Carriers (ILECs)

Arkansas Telephone Company, Inc. Arkwest Communications, Inc. Central Arkansas Telephone Cooperative, Inc. CenturyTel of Arkansas, Inc. CenturyTel of Central Arkansas, LLC CenturyTel of Missouri, LLC CenturyTel of Mountain Home, Inc. CenturyTel of Northwest Arkansas, LLC CenturyLink of Louisiana, LLC CenturyTel of Redfield, Inc. CenturyTel of South Arkansas, Inc. Cleveland County Telephone Company, Inc. Decatur Telephone Company, Inc. E. Ritter Telephone Company, Inc. Lavaca Telephone Company, Inc. Madison County Telephone Company, Inc. Magazine Telephone Company, Inc. Mountain View Telephone Company Northern Arkansas Telephone Company, Inc. Ozark Telephone Company of Missouri Prairie Grove Telephone Company Rice Belt Telephone Company, Inc. Scott County Telephone Company, LLC South Arkansas Telephone Company, Inc. Southwest Arkansas Telephone Cooperative, Inc. Southwestern Bell Telephone Company Tri-County Telephone Company, Inc. Valor Telecommunications of Texas, LLC Walnut Hill Telephone Company Windstream Arkansas, LLC Windstream Missouri, LLC Yelcot Telephone Company

Thirty-two ILEC companies were under the Commission's jurisdiction during 2019.

2019 Annual Report 105

Competitive Local Exchange Carriers (CLECs)

ACN Communication Services, LLC AireCast, LLC Airespring, Inc. Airus, Inc. Aristotle Unified Communications L.L.C. AT&T Corp. Bandwidth.com CLEC, LLC BCN Telecom, Inc. Big River Telephone Company, LLC Fusion Cloud Services, LLC d/b/a Fusion Connect Broadview Networks, Inc. BullsEye Telecom, Inc. CBTS Technology Solutions LLC CenturyLink Communications, LLC Comcast Phone of Arkansas, LLC ComTech21, LLC Conterra Ultra Broadband LLC Cox Arkansas Telcom, L.L.C. Crexendo Business Solutions, Inc Crown Castle Fiber LLC DeltaCom, LLC Dirt Moves, Inc. dishNET Wireline L.L.C. E. Ritter Communications, Inc. EarthLink Business, LLC Easton Telecom Services, LLC eNetworks NC, LLC Enhanced Communications Group, LLC Entelegent Solutions, Inc. ExteNet Systems, Inc. France Telecom Corporate Solutions LLC GC Pivotal, LLC Global Connection Inc. of America Granite Telecommunications, LLC IDT America Corporation inContact, Inc. JSK Company, Inc. Level 3 Communications, LLC Level 3 Telecom of Arkansas, LLC Lingo Communications Midwest, LLC Matrix Telecom, LLC

106 2019 Annual Report

Competitive Local Exchange Carriers (CLECs)

MCImetro Access Transmission Services Corp. McLeodUSA Telecommunications Services, LLC Media Link Telecom, LLC Metropolitan Telecommunications of Arkansas, Inc. Mobilitie Management, LLC Mobilitie, LLC Network USA, LLC Neutral Tandem-Arkansas, LLC New Horizons Communications Corp. NextGen Communications, Inc. NOS Communications, Inc. Onvoy, LLC Peerless Network of Arkansas, LLC Pinnacle Telecom Pinnacle Telecom, LLC PNG Telecommunications, Inc. QuantumShift Communications, Inc. Socket Telecom, LLC Southwestern Bell Telephone Company Spectrotel, Inc. Sprint Communications Company, LP SQF, LLC Talk America Services, LLC TalkBug.com, LLC TCA Communications, LLC TEC of Jackson, Inc. TelCove Operations, LLC Teleport Communications America, LLC TeleQuality Communications, Inc. Time Clock Solutions, LLC Touchtone Communications, Inc. Unite Private Networks, L.L.C. Uniti Fiber LLC Velocity the Greatest Phone Company Ever, Inc. Verizon Select Services, Inc. Vero Fiber Networks, LLC WANRack, LLC West Safety Communications Inc. West Telecom Services, LLC Wide Voice, LLC WiMacTel, Inc.

2019 Annual Report 107

Competitive Local Exchange Carriers (CLECs)

Windstream Communications, LLC Windstream KDL, LLC Windstream Norlight, LLC Windstream NuVox Arkansas, LLC XO Communications Services, LLC Yelcot Video Group, Inc. YMax Communications Corp. Zayo Group, LLC

Ninety CLEC companies were under the Commission's jurisdiction during 2019.

Interexchange Carriers (IXCs)

800 Response Information Services LLC Access One, Inc. AccessLine Communications Corporation ACN Communication Services, LLC Advantage Telecommunications Corporation Affinity Network, Inc. Affordable Long Distance LLC Airespring, Inc. Alliance Global Networks LLC American Telecommunications Systems, Inc. AmeriVision Communications, Inc. ANPI Business, LLC Assist Wireless, LLC Association Administrators, Inc. BCM One, Inc. BCN Telecom, Inc. Broadband Dynamics, LLC Broadview Networks, Inc. Broadvox-CLEC, LLC Broadwing Communications, LLC BT Communications Sales LLC Buehner-Fry, Inc. Business Network Long Distance, Inc. Business Telecom, LLC Cause Based Commerce Incorporated CBTS Technology Solutions LLC

108 2019 Annual Report

Interexchange Carriers (IXCs)

Central Telecom Long Distance, Inc. CenturyLink Communications, LLC Claro Enterprise Solutions, LLC Communications Network Billing, Inc. ComTech21, LLC Consolidated Telecom, Inc. Consumer Telcom, Inc. Convergia, Inc. Correct Solutions, LLC Crexendo Business Solutions, Inc Custom Teleconnect, Inc. DCT Telecom Group, Inc. DeltaCom, LLC Easton Telecom Services, LLC Electric Lightwave, LLC Enhanced Communications Group, LLC Enhanced Communications Network, Inc. First Choice Technology, Inc. First Communications, LLC Fusion Connect Global Crossing Telecommunications, Inc. Global Tel*Link Corporation GoDaddy.com, LLC Grasshopper Group, LLC IDT America Corporation inContact, Inc. Inmate Calling Solutions, LLC Integrated Services of Nevada, Inc. KDDI America, Inc. K-Powernet, L.L.C. LCR Telecommunications, LLC Legacy Long Distance International, Inc. Level 3 Communications, LLC Long Distance Consolidated Billing Company Lotel, Inc. Matrix Telecom, LLC MCI Communications Services, Inc. McLeodUSA Telecommunications Services, LLC McLeodUSA Telecommunications Services, LLC Multiline Long Distance, Inc. NATCO Technologies, Inc.

2019 Annual Report 109

Interexchange Carriers (IXCs)

National Access Long Distance, Inc. Nationwide Long Distance Service, Inc. Network Communications International Corp. Network Service Billing, Inc. NetworkIP, LLC New Horizons Communications Corp. NOS Communications, Inc. NOSVA Limited Partnership NV Legent Comm LLC OPEX Communications, Inc. PAETEC Communications, LLC Pay Tel Communications, Inc. Peak Communications, Inc. PNG Telecommunications, Inc. Public Communications Services, Inc. Reduced Rate Long Distance, LLC Reliant Communications, Inc. Roman LD, Inc. SBC Long Distance, LLC Silv Communication Inc. Spectrotel, Inc. Sprint Communications Company, LP Sprint Communications Company, LP Stratus Networks, Inc. TCA Communications, LLC TDS Long Distance Corporation Telecom Management, Inc. TeleQuality Communications, Inc. Telrite Corporation Time Warner Cable Business LLC Total Holdings, Inc. Touchtone Communications, Inc. Twin City Capital, LLC U.S. Telecom Long Distance, Inc. US South Communications, Inc. USA Digital Communications, Inc. Valor Telecommunications LD, LP Value-Added Communications, Inc. Velocity the Greatest Phone Company Ever, Inc. Verizon Long Distance, LLC Verizon Select Services, Inc.

110 2019 Annual Report

Interexchange Carriers (IXCs)

Verizon Select Services, Inc. Voicecom Telecommunications, LLC Wholesale Carrier Services, Inc. WilTel Communications, LLC Windstream Communications, LLC Working Assets Funding Service, Inc. Worldwide Marketing Solutions, Inc. X2Comm, Inc.

One hundred sixteen IXC companies were under the Commission's jurisdiction during 2019.

Private Pay Telephone Providers (PPTPs)

CenturyLink Public Communications, Inc. City Tele Coin Company, Inc. DSI-ITI, LLC Encartele, Inc. Global Tel*Link Corporation Interstate Telecommunications of Georgia, Inc. Jaroth, Inc. Securus Technologies, Inc. Securus Technologies, Inc. Southwestern Bell Telephone Company TIP Systems, LLC

Eleven PPTP companies were under the Commission's jurisdiction during 2019.

Eligible Telecommunications Carriers (ETCs)

3E8 Broadband Solutions, LLC American Broadband and Telecommunications Company Aristotle Unified Communications L.L.C. Assist Wireless, LLC Boomerang Wireless, LLC dba enTouch Wireless Cellco Partnership dba Verizon Wireless Cox Arkansas Telcom, L.L.C. E. Ritter Telephone Company, LLC

2019 Annual Report 111

Eligible Telecommunications Carriers (ETCs)

Easy Telephone Service Company Everycall Communications, Inc. Global Connection Inc. of America New Cingular Wireless PCS, LLC NEXT, Powered by NAEC, LLC OzarksGo, LLC Q Link Wireless LLC Sage Telecom Communications, LLC South Central Connect LLC TAG Mobile, LLC Telrite Corporation TerraCom, Inc. WAVE Rural Connect, LLC Wisper ISP Inc.

Twenty-two ETC companies were registered with the Commission during 2019.

Transportation Network Companies (TNCs)

Lyft Drives Arkansas, Inc. Raiser LLC (Uber)

Two TNCs companies were under the Commission's jurisdiction during 2019.

112 2019 Annual Report

APPENDIX B STATISTICAL SUMMARIES

ELECTRIC COMPANIES – ARKANSAS ONLY Plant Investments; Operating Revenues Year Ended December 31, 2019

2019 Annual Report 113

ELECTRIC COMPANIES – ARKANSAS ONLY Customers; kWh Sold; Revenues Year Ended December 31, 2019

114 2019 Annual Report

ELECTRIC COMPANIES – ARKANSAS ONLY Customers; kWh Sold; Revenues Year Ended December 31, 2019

2019 Annual Report 115

ELECTRIC COMPANIES – ARKANSAS ONLY Customers; kWh Sold; Revenues Year Ended December 31, 2019

116 2019 Annual Report

ELECTRIC COMPANIES – ARKANSAS ONLY Customers; kWh Sold; Revenues Year Ended December 31, 2019

2019 Annual Report 117

ELECTRIC COMPANIES – ARKANSAS ONLY Customers; kWh Sold; Revenues Year Ended December 31, 2019

118 2019 Annual Report

ELECTRIC COMPANIES – ARKANSAS ONLY Customers; kWh Sold; Revenues Year Ended December 31, 2019

2019 Annual Report 119

REGIONAL TRANSMISSION ORGANIZATIONS (RTOs) – ARKANSAS ONLY Plant Investment; Operating Revenues Year Ended December 31, 2019

120 2019 Annual Report

GAS COMPANIES – ARKANSAS ONLY Plant Investment; Operating Revenues Year Ended December 31, 2019

GAS COMPANIES – ARKANSAS ONLY

Customers; Mcf Sold; Revenues Year Ended December 31, 2019

2019 Annual Report 121

WATER COMPANIES – ARKANSAS ONLY Plant Investment; Operating Revenues

Year Ended December 31, 2019

WATER COMPANIES – ARKANSAS ONLY

Customers; Revenues

Year Ended December 31, 2019

122 2019 Annual Report

INCUMBENT LOCAL EXCHANGE CARRIERS (ILECs) Arkansas Revenues and Access Lines Year Ended December 31, 2019

2019 Annual Report 123

COMPETITIVE LOCAL EXCHANGE CARRIERS (CLECs) Arkansas Revenues and Access Lines Year Ended December 31, 2019

124 2019 Annual Report

COMPETITIVE LOCAL EXCHANGE CARRIERS (CLECs) Arkansas Revenues and Access Lines

Year Ended December 31, 2019

2019 Annual Report 125

COMPETITIVE LOCAL EXCHANGE CARRIERS (CLECs) Arkansas Revenues and Access Lines Year Ended December 31, 2019

126 2019 Annual Report

INTEREXCHANGE CARRIERS (IXCs) PRIVATE PAY TELEPHONE PROVIDERS (PPTPs) Arkansas Revenues

Year Ended December 31, 2019

2019 Annual Report 127

INTEREXCHANGE CARRIERS (IXCs) PRIVATE PAY TELEPHONE PROVIDERS (PPTPs) Arkansas Revenues Year Ended December 31, 2019

128 2019 Annual Report

INTEREXCHANGE CARRIERS (IXCs) PRIVATE PAY TELEPHONE PROVIDERS (PPTPs) Arkansas Revenues Year Ended December 31, 2019

2019 Annual Report 129

130 2019 Annual Report

APPENDIX C

RECEIPTS AND DISBURSEMENTS

2019 Annual Report 131

132 2019 Annual Report

DEFINITIONS

A.O.G.: A.O.G. Corporation.

ABATE: Association of Business Advocating Tariﬀ Equity.

AC/Alternating Current: An electric current that reverses its direction many times a second at regular intervals, typically used in power supplies.

ACEC: Ashley Chicot Electric Cooperative, Inc.

ADIT: Accumulated Deferred Income Tax.

AECC: Arkansas Electric Cooperative Cooperation.

AFUDC: Allowance for Funds Used During Construction.

AEP: American Electric Power.

AG: Attorney General of Arkansas.

AGC: Arkansas Gas Consumers, Inc.

ALJ: Administrative Law Judge.

AMA: Asset Management Agreement.

AMI: Advanced Metering Infrastructure.

ANO: Arkansas Nuclear One.

ANO‐2: Arkansas Nuclear One Unit 2.

ANOR Rider: Arkansas Nuclear One, Unit 1 Interim Capacity Cost Recovery Rider.

AOG: Arkansas Oklahoma Gas Corporation.

APEX: Apex Clean Energy, Inc.

APSC/Commission: Arkansas Public Service Commission.

Armstrong: Armstrong Flooring Company.

Audubon: Audubon Arkansas.

AVECC: Arkansas Valley Electric Cooperative Corporation.

Average System Rate: Total revenue received from retail customers divided by kWh sold to retail customers.

2019 Annual Report 133

Base Load: The constant load in a power system, that is not subject to variation due to seasons, temperature, or time of day.

Base Rates: Rates a utility charges all residential, commercial, and industrial customers.

Basis Sales: Paired, simultaneous power purchase and sale transactions at diﬀerent locations that take advantage of the diﬀerence in the market value of energy at two locations.

Batesville: Batesville School District.

BCA: Broad Constrained Areas.

BCR: Benefits/Cost Ratio.

BDA: Billing Determinant Adjustment.

BHEA: Black Hills Energy Arkansas, Inc.

Billing Cycle: The period of time or the dates of occurrence for issuing periodic bills for service.

Billing Determinants: The measurements of consumption used to calculate a customer’s bill or to determine the aggregate revenue from rates from all customers. Billing determinants must follow the structure of rates so that if rates are blocked, seasonally diﬀerentiated, time‐ diﬀerentiated, or separated by demand and energy measures, then billing determinants must be organized in the same fashion.

Block Rate: A schedule of prices for electricity wherein the price per kilowatt‐hour (kWh) or kilowatt (kW) changes at diﬀerent levels of consumption or demand. For example, if the first 300 kWh of use per month are charged at one rate and all over 300 kWh are charged at a diﬀerent, the rate schedule is a block rate.

BOT: Build-Own-Transfer.

BRS: Big River Steel LLC.

BTU/British Thermal Unit: The standard unit of measuring a quantity of heat energy. It is the amount of heat energy necessary to raise the temperature of one pound of water one degree Fahrenheit at a specified temperature.

C&EE: Commission’s Rules for Conservation and Energy Eﬃciency Programs.

C&I/Common C&I Approach: Common Commercial and Industrial Approach.

C&L: C&L Electric Cooperative Corporation.

CAC: Customer Activity Charges.

Capacitor: A device to store an electrical charge.

Capacity: The maximum amount of electrical load, which a device can carry at one time.

134 2019 Annual Report

Capacity Costs: The costs to the utility for the provision of suﬃcient generation, transmission, and distribution facilities to meet peak demand.

CAPE: Central Arkansas Pipeline Enhancement.

Carroll/CECC: Carroll Electric Cooperative Corporation.

CCECC: Clay County Electric Cooperative Corporation.

CCN: Certificate of Public Convenience and Necessity.

CCR Rider: Capacity Cost Recovery Rider.

CCRM: Capital Cost Recovery Mechanism.

CEA/CenterPoint: CenterPoint Energy Resources, d/b/a CenterPoint Energy Arkansas Gas.

CECC: Craighead Electric Cooperative Corporation.

CECPN: Certificate of Environmental Compatibility and Public Need.

Chemtura: Chemtura Corporation.

Circuit (Electric): A conductor or a system of conductors through which electric current flows or is intended to flow, e.g., wires.

Clay: Clay County Electric Cooperative Corporation.

CLEC: Competitive Local Exchange Carrier.

CNO: Council of the City of New Orleans.

Connection Charge: An amount paid by the customer in a lump sum, or in installments, for connecting the customer’s facilities; or a charge for all the capital costs incurred in adding a new customer to the system. Connection costs might also include the costs of service drop and the meter, or they might include the capital costs of all the generation, transmission, and distribution facilities that must be added to accommodate the new customer.

COSACAR/Cost of Service and Cost Allocation Report: An analysis, by customer class, of the cost of providing electricity. The purpose of the study is to allocate costs to customer classes and provide the basis for developing rates for these customers.

COSS: Cost of Service Study.

Cost Allocation Policies: Instructions or statements of direction guiding the apportionment of system costs to the rate classes.

Current: The amount of electrical charge flowing through a conductor, as compared with volts, which is the force that drives the electrical charge.

2019 Annual Report 135

Customer Charge: A basic charge added to each customer’s bill to cover such costs as meter reading, customer accounting, and billing.

DCF: Discounted Cash Flow.

Declining Block Rate: A schedule of prices for electricity wherein the first “block” (X number of kW‐ hours or kW) used by a customer is priced at one rate and the next block(s) at a successively lower rates.

Demand: In an economic context, the quantity of a product that will be purchased at a given price at a particular point in time. In a public utility context, the rate at which electric energy is delivered to or by a system, expressed in kilowatts, or kilovolt amperes or other suitable units at a designated period of time.

Demand Charge: That portion of a customer’s bill for service based upon the peak electric capacity (kilowatts) demanded or required by power‐consuming equipment and billed under an applicable rate schedule.

DER: Distributed Energy Resources.

Direct Current: An electric current flowing constantly in one direction at one rate.

Distribution: The act or process of distributing electric energy from convenient points on the transmission system to the customers. It is also a functional classification describing that portion of the utility facilities or plant used for the purpose of delivering electric energy from convenient points on the transmission system to the customers, or describing the expenses relating to the operation and maintenance of the distribution plant.

Distribution Capacity Charge: A fee charged to customers for a stand‐by service in case of emergency.

Distribution System: That portion of an electric system, which delivers electric energy from points on the transmission, or bulk power system to the customers.

DOE: Department of Energy.

DOT: Department of Transportation.

EAI: Entergy Arkansas, Inc. Eﬀective December 4, 2018, Entergy Arkansas, Inc.’s name was changed to Entergy Arkansas, LLC.

EAL: Entergy Arkansas, LLC.

ECR Rider: Energy Cost Recover Rider.

EDE/Empire: The Empire District Electric Company.

EE: Energy Eﬃciency.

136 2019 Annual Report

EECR: Energy Eﬃciency Cost Recovery Rider.

EFS: Electronic Filing System.

EGSL: Entergy Gulf States Louisiana, LLC.

EGT: Enable Gas Transmission LLC.

ELL: Entergy Louisiana, LLC.

ELMP: Extended Locational Marginal Pricing.

EM&V: Evaluation, Measurement, and Verification.

EMI: Entergy Mississippi, LLC.

Enable: Enable Gas Transmission, LLC.

End Block/Tail Block: The last block of energy in the block rate structure.

Energy Charge: That portion of a customer’s bill for electric service based upon the electric energy consumed and billed under an applicable rate schedule.

Energy (oﬀ‐peak): Energy supplied during periods of relatively low system demand as specified by the supplier.

Energy (on‐peak): Energy supplied during periods of relatively high system demand as specified by the supplier.

ENO: Entergy New Orleans.

EOC: Entergy Operating Companies.

EPA: Environmental Protection Agency.

ECP Rider: Environmental Compliance Plan Rider.

ESA: Entergy System Agreement.

ESI: Energy Services Inc.

ESL: Energy Services LLC.

ETC: Eligible Telecommunications Carrier.

ETEC: East Texas Electric Cooperative, Inc.

ETI: Entergy Texas, Inc.

Farmers: Farmers Electric Cooperative Corporation.

FCC: Federal Communications Commission.

2019 Annual Report 137

FECC/First: First Electric Cooperative Corporation.

Feeder: Voltage lines used to distribute electric power from a substation to consumers or to smaller substations.

FERC: Federal Energy Regulatory Commission.

Firm Power: Power or power producing capacity intended to be available at all times during the period covered by commitment, even under adverse conditions.

Flat Rate: A fixed charge for electricity for a streetlight, flood light, or a fixed amount of energy. A flat rate schedule is a method of charging for electricity wherein all electricity used by a given customer is priced at the same amount per kilowatt‐hour or per kilowatt, regardless of the amount used.

FLCF Rider: Federal Litigation Consulting Fee Rider.

FPA: Federal Power Act.

FRP: Formula Rate Plan.

FRP Rider: Formula Rate Plan Rider.

FTCA Rider: Federal Tax Cut Adjustment Rider.

FUSF: Federal Universal Service Fund.

GGR Rider: Grand Gulf Rider.

GMES Rider: Government Mandated Expenditure Surcharge Rider.

GR Rider: Generation Recovery Rider.

GSR: General Service Rules.

Husqvarna: Husqvarna Plastics Nashville, LLC.

ID: Initial Decision.

IEEE: Institute of Electrical and Electronics Engineers Standard 1453.

IEM: Independent Evaluation Monitor.

ILEC: Incumbent Local Exchange Carrier.

IMM: Independent Market Monitor.

Interruptible Discount: A discount for customers that agree to interrupt their service at the utility’s request during certain times when system demand or wholesale energy costs are very high.

138 2019 Annual Report

IOU/Investor Owned Utility: A for‐profit power company owned by private investors that generate and supply electricity, gas, or water to customers. IOUs are subject to diﬀerent regulations than municipal (public) utilities.

IRCR Rider: Internal Restructuring Credit Rider.

IT: Information Technology.

IXC: Interexchange Carrier.

JOA: Joint Operating Agreement.

JOOA: Joint Ownership and Operating Agreement. kVa/Kilovolt Ampere: Equal to 1000 volt‐amperes. kW/Kilowatt: Is equal to 1000 watts. kWh/Kilowatt‐hour: A measure of electric energy equal to one kilowatt of power supplied to or taken from an electric circuit during a one‐hour period.

Lanxess: Lanxess Corporation.

LED Lamp or LED Light Bulb: An electric light for use in light fixtures that produces light using one or more light-emitting diodes (LEDs).

Liberty/Liberty‐Pine Bluﬀ: Liberty Utilities (Pine Bluﬀ Water) Inc.

Load: The amount of electric power delivered or required at any specified point or points on a system.

Load Factor: The ratio of average demand, in kilowatts, over a stated period of time to the maximum demand in kilowatts occurring in the same time period. It is the measure of variability of the load over a period of time.

Load Forecasting: The procedures used to estimate future consumption of electricity. These estimates are used in planning for generation, transmission, and distribution facilities; in calculating the future revenue from the sales of electricity; in determining cost allocations for the various rate classes; and in assessing the impact on the load of changes in policies or underlying conditions such as the level of employment in the region. Load forecasts are developed either to provide the most likely estimate of future load or to determine what load would be under a set of specific conditions; e.g., extremely cold weather, high rates of inflation, or changes in electricity prices. Forecasting procedures include trending (extrapolating past trends into the future) and econometrics.

Load Growth: The increase in the consumption of a utility’s output from one point in time to another expressed in either absolute or percentage terms. Load growth is also the growth in energy and power demand by a utility’s customers.

2019 Annual Report 139

LOC: Line of Credit.

Losses: The general term applied to energy and power lost or unaccounted for in the operation of an electric system.

LPSC: Louisiana Public Service Commission.

LRZ: Local Resource Zone.

LSC: Liberty Sub Corp.

LUC: Liberty Utilities (Central) Company.

Lyft: Lyft Drives Arkansas, Inc.

Magellan: Magellan Pipeline Company, LP.

MCEC: Mississippi County Electric Cooperative, Inc.

MCS: Market Center Services.

Megavolt‐ampere: 1000 kVa.

Megawatt: 1000 Kilowatts or 1,000,000 watts.

MEP: Market Eﬃciency Projects.

Metering: The various devices and associated equipment designed to measure or indicate and record the usage of electricity or natural gas.

Minimum Charge: The minimum amount charged to each customer if the sum of other charges is lower than the minimum charge.

MISO: Midcontinent Independent System Operator, Inc.

MPSC: Mississippi Public Service Commission.

MPTA: Midwest Power Transmission Arkansas, LLC.

MRP: Main Replacement Program.

MRT: Enable Mississippi River Transmission, LLC.

MTEP: MISO Transmission Expansion Planning.

Mustang Plan: Mustang Modernization Plan.

MW: Megawatt.

NAEC: North Arkansas Electric Cooperative, Inc.

NAICS: North American Industry Classification System.

140 2019 Annual Report

NANPA: North American Numbering Plan Administrator.

NARUC: National Association of Regulatory Utility Commissioners.

NCA: Narrow Constrained Areas.

NCWE: North Central Wind Energy.

NDCR: Nuclear Decommissioning Cost Recovery Rider.

NEBs: Non‐energy Benefits.

Net‐metering: Measuring the diﬀerence between the electricity supplied over the electric distribution system and the electricity generated by an eligible customer generator, fed back into the electric distribution system over a billing period.

Network: A system of interconnected circuit components.

NGA: Natural Gas Act.

NMRs: Net‐Metering Rules.

NMWG: Net‐Metering Working Group.

NOI: Notice of Intent.

Non‐firm Power: Power or power‐producing capacity supplied or available under an arrangement that does not have a guaranteed continuous availability feature of firm power. Power supplied based on the availability of a generating unit is one type of such power.

NRC: Nuclear Regulatory Commission.

NRIS: Network Resource Interconnection Service.

NSPM: National Standard Practice Manual.

O&M: Operation and maintenance.

OECC: Ozarks Electric Cooperative Corporation.

OG&E: Oklahoma Gas and Electric.

OMS: Organization of MISO States.

ONE: Ozarks Natural Energy Solar Program.

Operating Costs: Regularly occurring expenses associated with producing and distributing goods and services.

Operating Revenue: The amounts billed by the utility for services rendered and for other services incidental thereto.

2019 Annual Report 141

ORCA: Operations Reliability Coordination Agreement.

Ouachita: Ouachita Electric Cooperative.

Ozark: Ozark Gas Transmission, LLC.

PA: Pooling Administrator.

PAR: Pole Attachment Rules.

Peak Demand: The maximum demand imposed on a power system or component thereof during a specified time period.

Peak Load: The maximum electrical load consumed or produced in a stated period of time. It may be the maximum instantaneous load or the average load within a designated interval of time.

PESP: Pre‐pay Electric Service Program.

PGIM, Inc.: Formerly Prudential Investment Management, Inc.

PJECC: Petit Jean Electric Cooperative Corporation.

PJM: PJM Interconnection, LLC.

Power Factor: The ratio of real or actual (kW) to apparent power (kilovolt‐amperes) for any given load and time. Power factor is measured in percent and varies from 0 to 100 percent.

PPA: Purchase Power Agreement.

PPTP: Private Pay Telephone Provider.

PRA: Planning Resource Auction.

PSO: Pipeline Safety Oﬃce.

PUCT: Public Utility Commission of Texas.

PURPA: Public Utility Regulatory Policies Act of 1978.

PWC: Parties Working Collaboratively.

PY: Program Year.

QF: Qualifying Facilities.

RAP: Regulatory Assistance Project.

Rate Base: The value, specified by a regulatory authority, upon which a utility (usually an IOU) is permitted to earn a specified rate of return. Generally, this represents the amount of property used and useful in public service and may be based on the following values or

142 2019 Annual Report

combinations thereof: fair value, prudent investment, reproduction cost, or original cost; and may provide for cash working capital, materials and supplies, and deductions for accumulated depreciation, contributions in aid of construction, and accumulated deferred income taxes.

Rate Case: The process in which a utility appears before its regulatory authority to request a general change or modification in its rates and charges.

Rate Class: A group of customers identified as a class subject to a rate diﬀerent from rates of other groups.

Rate Design: Terminology used to denote those steps or principles used to plan or construct the rate schedules for the classes. This step follows the cost allocation step wherein determinations are made as to how much revenue to collect from each rate class. Rate design governs the relative level of the rate charges such as customers, energy and demand charges, block structure, and the components to be included in the schedules.

Rate Schedule: A statement of the rates and the terms and conditions governing its application. The rate part of the schedule generally consists of one or more of the following charge components: customer (or basic) charge, energy charge, demand charge, and minimum charge.

Rate Structure: The design and organization of billing charges for a group of customers.

RECC: Real Economic Carrying Charge.

Residential Class: A customer, sales, and revenue classification used for load forecasting, reporting sales figures to FERC, and for all cost allocations. Basically, this class consists of customers individually metered for electricity consumption in a residence.

Revenue Requirement: The revenue level necessary to financially sustain the operations of the utility.

RFP: Request for Proposal.

Rider ANOR: Arkansas Nuclear One, Unit 1 Interim Capacity Cost Recovery Rider.

Rider ECP: Environmental Compliance Plan Rider.

Rider FLCF: Federal Litigation Consulting Fee Rider.

Rider FRP: Formula Rate Plan Rider.

Rider FTCA: Federal Tax Cut Adjustment Rider.

Rider GGR: Grand Gulf Rider.

Rider GMES: Government Mandated Expenditure Surcharge Rider.

Rider GR: Generation Recovery Rider.

Rider IRCR: Internal Restructuring Credit Rider.

2019 Annual Report 143

Rider NDCR: Nuclear Decommissioning Cost Recovery Rider.

Rider SAR: Service At‐Risk Rider.

Rider SRC: Storm Recovery Charges Rider.

Rider TA: Tax Adjustment Rider.

Rider TCR: Transmission Cost Recovery Rider.

RMECI: Rich Mountain Electric Cooperative, Inc.

ROE: Return on Equity.

ROR: Rate of Return.

RP: Reporting Dockets.

RPCE: Rough Production Costs Equalization.

RPP: Rules of Practice and Procedure.

RSG: Revenue Suﬃciency Guarantee.

RTO: Regional Transmission Operator.

SAR: Services At‐Risk Rider.

SARP: Standardized Annual Report Packet.

SAU: South Arkansas University Tech.

SCAEC: South Central Arkansas Electric Cooperative, Inc.

S‐D/Self‐Direct: Large commercial and industrial customers seeking to opt‐out from utility provided energy eﬃciency (EE) programs and to self‐direct (S‐D) their own EE improvements.

Seasonal Rates: A charge for a utility’s service that is imposed only during a particular season during the year. This is because the cost of delivering services is higher during certain seasons.

SEC: Security and Exchange Commission.

SEPO: Solar Energy Purchase Option.

SERI: System Energy Resources, Inc.

SGA: SourceGas Arkansas, Inc.

SGL: SGL Carbon, LLC.

SGR Rider: Smart Grid Recovery Rider.

144 2019 Annual Report

SOC: Secretary of the Commission.

South Central: South Central Arkansas Electric Cooperative, Inc.

SPP: Southwest Power Pool.

SRC Rider: Storm Recovery Charge Rider.

Stratton: Riceland Seed Company d/b/a Stratton Seed Company.

Summit: Summit Utilities.

SW Transco: AEP Southwestern Transmission Company, Inc.

SWAEC: Southwest Arkansas Electric Cooperative Corporation.

SWEPCO: Southwestern Electric Power Company.

TA Rider: Tax Adjustment Rider.

Tail Block/End Block: The last block of energy in the block rate structure.

TCC: Transmission Control Centers.

TCJA: Tax Cuts and Jobs Act of 2017.

TCR Rider: Transmission Cost Recovery Rider.

TDU Intervenors: Transmission Dependent Utility Intervenors are identified as the following entities: The City of Independence, Missouri; Kansas Municipal Energy Agency; Kansas Power Pool; Missouri River Energy Services; Oklahoma Municipal Power Authority; and West Texas Municipal Power Agency.

TETCO: Texas Eastern Transmission, LP.

TF/Tariﬀ: A published volume of rate schedules and general terms and conditions under which a product or service will be supplied.

Tiered rates: A rate structure consisting of a lower rate level for an established level of service to existing customers and a higher rate for deliveries that serve either additional requirements of such existing customers or the requirements of new customers.

TMEP: Targeted Market Eﬃciency Projects.

TNC: Transportation Network Company.

TO: Transmission Owner.

Transformer: An electromagnetic device for changing the voltage of AC electricity to the level appropriate for the load served.

2019 Annual Report 145

Transmission: The movement or transfer of electric energy in bulk from a source(s) of supply to other principal parts of the system or to other utility systems.

Transmission System: An interconnected group of electric transmission lines and associated equipment for the movement or transfer of electric energy in bulk between points of supply and points at which it is transferred for delivery to ultimate consumers, or is delivered to electric system of other utilities.

TRM: Arkansas Technical Reference Manual used in the evaluation, measurement, and verification (EM&V) of energy eﬃciency programs provided by utilities to its customers.

UA: User’s Agreement.

UALR: University of Arkansas Little Rock.

Union Power: Union Power Partners, L.P.

UP: Union Pacific Corporation.

UPSA: Unit Power Sales Agreement.

USOA: Uniform System of Accounts.

WBL: Wholesale Baseload.

WCF: Wind Catcher Facility.

Weatherization: The process or program for increasing thermal eﬃciency of a building.

WECC: Woodruﬀ Electric Cooperative Corporation.

Wheeling: The use of transmission facilities belonging to one system to transmit power of and for another system.

WNA: Weather Normalization Adjustment.

WPPI: Formerly known as Wisconsin Public Power, Inc.

146 2019 Annual Report

Arkansas Public Service Commission 1000 Center Street P.O. Box 400 Little Rock, AR 72203 501-682-2051 www.arkansas.gov/psc