Arkansas Code Title 23. Public Utilities and Regulated Industries § 23-18-605. Municipal utilities

(a) A municipal utility shall allow net-metering facilities to be interconnected according to the ordinances, rules, or regulations established by the governing body of the municipal utility.

(b) The governing body of a municipal utility may elect to follow procedures under § 23-18-604, § 23-18-606, or § 23-18-607 or may adopt ordinances, rules, or regulations establishing the rates, terms, and conditions allowing the interconnection of net-metering facilities, including generation facilities and energy storage devices, whether owned or leased by a customer or operated by a third party on behalf of a customer.

(c) The governing body of a municipal utility may limit the generating capacity of a net-metering facility to less than twenty-five kilowatts (25 kW) for residential customers or three hundred kilowatts (300 kW) for nonresidential customers only after the governing body finds that the capacity limit is necessary for reliable utility operations or the public health, safety, or welfare.

(d) The governing body of a municipal utility shall not establish a rate or fee that reduces the value of electric energy from a net-metering facility to below the avoided cost of the municipal utility.

(e) For customers who receive service under a rate that includes a demand component, the governing body of the municipal utility shall require a municipal utility to credit a net-metering customer with any accumulated net excess generation in the next applicable billing period and base the bill of the customer on the net amount of electricity that the net-metering customer has received from or fed back to the municipal utility during the billing period.