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 i ii 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;