Arkansas Code Annotated

Ark. Code Ann. § 23-4-103 (2020)

Rates and rules to be reasonable

✓ Arkansas Code release r76: Acts through about 2020 (2021-2025 sessions missing)
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All rates made, demanded, or received by any public utility, for any product or commodity furnished, or to be furnished, or any service rendered or to be rendered, and all rules made by any public utility pertaining thereto shall be just and reasonable, and to the extent that the rates or rules may be unjust or unreasonable, are prohibited and declared unlawful.

History. Acts 1935, No. 324, § 10; Pope's Dig., § 2073; A.S.A. 1947, § 73-204; Acts 2019, No. 315, § 2388.

Amendments. The 2019 amendment substituted “Rates and rules” for “Rates, rules, and regulations” in the section heading and made a similar change in the section; and deleted “and regulations” following “rules”.

Cross References. Ratemaking policies for cost of acquisition or construction of incremental resources, § 23-18-107.

Case Notes

Corridor Rates.

Evidence supported the commission's approval of reduced “corridor rates” for industrial customers who would otherwise bypass the utilities resulting in even higher rates for residential customers; corridor rates are a just and reasonable response to the threat of bypass. Bryant v. Arkansas Pub. Serv. Comm'n, 57 Ark. App. 73, 941 S.W.2d 452 (1997).

Escalator Clauses.

Commission had the authority under this section to determine that proposed escalator clauses of gas company seeking rate increases were not just and reasonable so as to be put into effect under bond. Aluminum Co. of America v. Arkansas Pub. Serv. Comm'n, 226 Ark. 343, 289 S.W.2d 889 (1956).

Remedies.

Orders issued by the Arkansas Public Service Commission pursuant to an audit of costs allocated to telephone company upheld where telephone company's rates produced earnings in excess of a reasonable revenue requirement and an agreement was reached whereby, in lieu of proposed reductions to its rates, the telephone company would make service improvements. Bryant v. Arkansas Pub. Serv. Comm'n, 54 Ark. App. 157, 924 S.W.2d 472 (1996).

Standard of Review.

The appellate court must review the total effect of a rate order, and if the total effect cannot be said to be unjust, unreasonable, unlawful, or discriminatory, judicial inquiry is concluded. Bryant v. Arkansas Pub. Serv. Comm'n, 57 Ark. App. 73, 941 S.W.2d 452 (1997).

Pursuant to the Arkansas Public Service Commission's approval of the sale of an existing telecommunications utility's assets to a new telecommunications utility, where the record was not developed sufficiently for the appellate court to decide the issue of whether the application of PSC's parity order resulted in just and reasonable intrastate switched-access rates, a remand was required. Alltel Ark., Inc. v. Arkansas Pub. Serv. Comm'n, 76 Ark. App. 547, 69 S.W.3d 889 (2002).

Cited: Acme Brick Co. v. Arkansas Pub. Serv. Comm'n, 227 Ark. 436, 299 S.W.2d 208 (1957); Southwestern Bell Tel. Co. v. Arkansas Pub. Serv. Comm'n, 824 F.2d 672 (8th Cir. 1987).

Notes of Decisions
Cited in 5 cases, 1996–2003 · leading case: Arkansas Gas Consumers, Inc. v. Arkansas Pub. Serv. Comm'n, 118 S.W.3d 109 (Ark. 2003).
Arkansas Gas Consumers, Inc. v. Arkansas Pub. Serv. Comm'n, 118 S.W.3d 109 (Ark. 2003). · cites it 9× “Appellant further argues that this practice violates Ark. Code Ann. § 23-4-103 (Repl.2002). Arkansas Code Annotated § 23-4-103 provides: All rates made, demanded, or received by any public utility, for any product or commodity furnished, or to be furnished, or any service…”
Bryant v. Arkansas Pub. Serv. Comm'n, 941 S.W.2d 452 (Ark. Ct. App. 1997). · cites it 6× “The Attorney General argues that the Stipulation's provision that allows Arkla to recover from its other ratepayers its corridor rate costs violates the "just and reasonable" provisions of Ark.Code Ann. §§ 23-4-103 and 23-4-104 (1987) and is price discrimination, prohibited by…”
Bryant v. Arkansas Pub. Serv. Comm'n, 924 S.W.2d 472 (Ark. Ct. App. 1996). · cites it 2× “38 and 40 of the Stipulation docket assessed excess earnings at $33 million, approved the Stipulation, and set the value of the Stipulation. The Attorney General remained silent while that record was closed.”
Alltel Arkansas, Inc. v. Arkansas Pub. Serv. Comm'n, 69 S.W.3d 889 (Ark. Ct. App. 2002). · cites it 2× “Arkansas Code Annotated section 23-4-103 (1987) provides that all rates received by any public utility “shall be just and reasonable, and to the extent that the rates .”
Arkansas Gas Consumers, Inc. v. Arkansas Pub. Serv. Comm'n, 91 S.W.3d 75 (Ark. Ct. App. 2002). · cites it 4× “Double Recovery Citing Ark.Code Ann. § 23-4-103 (Repl. 2002), which requires that utility rates be just and reasonable, appellant notes in its fifth point that the utilities' existing base rates already include an amount for bad debt and asserts that the utilities will recover…”
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