Ark. Code Ann. § 23-4-103 (2020)
Rates and rules to be reasonable
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).