Notice
On October 4, 2023, the management (Management) of Arkansas Electric Cooperative Corporation (AECC) gave notice to AECC’s Board of Directors (Board) that it proposes to seek a wholesale electric rate increase to its 17 member cooperatives on December 5, 2023. If the Board approves, AECC will seek rate relief from the Arkansas Public Service Commission (Commission) under Arkansas Act 676 of 2009 (Act 676), codified as Ark. Code Ann. § 23-4-1101 et seq. Management’s recommendation to the Board is based on AECC’s need to recover the increased cost of providing wholesale generation and transmission service. The recommended rate increase will produce approximately $63.8 million in additional annual revenue. The recommendation results in a rate increase to wholesale service of approximately 5.83%. The average retail rate impact will be approximately $.00425 per kWh; the average residential retail cooperative member’s monthly bill will increase $4.94. The total recommended rate increase approximately equals 5% of AECC’s total gross revenues. The effective date of any change in AECC’s wholesale rates will be determined by the Commission. If the Board approves the recommendation, AECC anticipates that it will file its request with the Commission on or about December 5, 2023. AECC’s Management recommends that any rate relief granted by the Commission become effective on April 1, 2024. Under Act 676, if AECC files its request on December 5, 2023, any rate relief should be granted no later than March 4, 2024.
The recommended change in rates affects AECC’s Rate-1 wholesale rate schedule. The current rates in effect and the recommended modifications are as follows:
| Monthly Current Rates | Monthly Recommended Rates | |
|---|---|---|
| Generation kW Demand Charge | $5.89 per billing kW | $6.40 per billing kW |
| Transmission kW Demand Charge | $3.92 per billing kW | $4.27 per billing kW |
| kWh Energy Charge | $.02602 per billing kWh | $.02830 per billing kWh |
For any member cooperative making a request, AECC will calculate the impact of the recommended increase on that member cooperative’s wholesale electric bill.
Any affected electric cooperative retail member may express their opinion regarding this recommendation or seek additional information regarding this notice by contacting their retail electric cooperative service provider or AECC. AECC’s contact information is as follows:
Robert Shields
Senior Director, Regulatory and Rates
Arkansas Electric Cooperative Corporation
1 Cooperative Way
Little Rock, Arkansas 72209-5433
Phone: (501) 570-2200 ǀ Email: legalnotices@aecc.com
AECC has been assigned Commission Docket No. 23-072-U for this proposed rate increase. Once AECC files its request for rate relief with the Commission under Act 676, a public hearing will be scheduled by the Commission and at which oral public comments will be accepted. Notice for the hearing will be filed in the Docket and along with all Docket filings, will be accessible here: apps.apsc.arkansas.gov/olsv2/docket_search.asp. In addition, public comments may be submitted via the Commission’s website listed below.
The Commission’s Rules detail how interested persons may intervene as a party or file a limited appearance. Additional information regarding any filing resulting from this recommendation may be obtained from the Secretary of the Commission as follows:
Secretary of the Commission
Arkansas Public Service Commission
1000 Center Street
P.O. Box 400
Little Rock, Arkansas 72203-0400
Telephone No. (501) 682-5782
Commission e-mail address: socmaster@arkansas.gov
Commission Web Site: https://apsc.arkansas.gov/