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Arkansas Code Annotated

Ark. Code Ann. § 23-4-201 (2026)

Electric, gas, telephone, or sewer utilities — Rate-making authority — Definition

✓ current as of May 2026
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    1. The Arkansas Public Service Commission is vested with the sole and exclusive jurisdiction and authority to determine the rates to be charged for each kind of product or service to be furnished or rendered by electric, gas, telephone, or sewer public utilities in Arkansas.
    2. Cities and towns in this state shall have no authority acting either through their governing bodies or by the initiative of their citizens to assume or exercise any jurisdiction or authority to fix and determine rates charged in Arkansas by electric, gas, or telephone public utilities.
  2. As used in this section, “electric, gas, telephone, or sewer public utilities” includes persons and corporations or their lessees, trustees, and receivers who own or operate, in this state, equipment or facilities for producing, generating, transmitting, delivering, furnishing, or collecting electricity, sewage, or gas for the production of light, heat, or power, or for the collection of sewage or other waste; who convey or transmit messages or communications by telephone or telegraph to, or for, the public for compensation who produce, generate, transmit, deliver, or furnish electricity or gas to any other person or corporation for resale or distribution to, or for, the public for compensation or for operating or maintaining sewer facilities. This term shall not include those utilities owned or operated by municipalities or leased by them to a nonprofit corporation.
  3. The General Assembly determines that the existing procedures whereby rates described in this section may be determined and fixed by the cities and towns of the State of Arkansas acting through their governing bodies or by the initiative of their citizens have resulted in a multiplicity of rate determination proceedings and forums which are costly and inefficient, have created conflicts between the rates charged in different cities and towns for the same services thus establishing unreasonable preferences to certain citizens, and have discriminated unfairly against the citizens of certain cities and towns to the detriment and at the expense of those citizens and the citizens of the entire State of Arkansas.
  4. Nothing in this section shall be construed to change or alter the rates being charged for electric, gas, telephone, or sewer public utility services until changed by order of the commission in the manner provided by law.

History. Acts 1977, No. 164, §§ 1-3, 5; A.S.A. 1947, §§ 73-202a, 73-202a note, 73-202b, 73-202b note.

Cross References. Jurisdiction over utilities and appeals, § 14-200-101.

Research References

U. Ark. Little Rock L.J.

Derden, Survey of Arkansas Law: Administrative Law, 2 U. Ark. Little Rock L.J. 157.

Case Notes

Collective Bargaining Agreements.

In ratemaking proceeding, Arkansas Public Service Commission was not preempted by National Labor Relations Act from adjusting downward the costs associated with wages and benefits set by collective bargaining agreement where commission found those costs disproportionate to those at similar companies. Southwestern Bell Tel. Co. v. Arkansas Pub. Serv. Comm'n, 824 F.2d 672 (8th Cir. 1987), cert. denied, 485 U.S. 989, 108 S. Ct. 1293, 99 L. Ed. 2d 503 (1988).

Commission's Authority.

While it is true that § 14-200-101 grants municipalities the right to establish terms and conditions upon which public utilities may be permitted to operate within the borders of municipalities, this section clearly divests the cities and towns of any jurisdiction to fix or determine rates and grants exclusive jurisdiction to the Arkansas Public Service Commission in rate-making matters. City of Ft. Smith v. Arkansas Pub. Serv. Comm'n, 278 Ark. 521, 648 S.W.2d 40 (1983).

The General Assembly has delegated investigation and rate-making authority to the Arkansas Public Service Commission; the commission is the fact finder and in performing its legislatively delegated function of rate-making the commission has broad discretion. City of Ft. Smith v. Arkansas Pub. Serv. Comm'n, 278 Ark. 521, 648 S.W.2d 40 (1983).

To the extent that matter involved a dispute over rates charged by power company, its resolution fell within the purview and jurisdiction of the public service commission. Cullum v. Seagull Mid-South, Inc., 322 Ark. 190, 907 S.W.2d 741 (1995).

Commission's Jurisdiction.

Supreme Court of Arkansas granted a gas utility company's writ of prohibition from a county court's denial of the company's motion to dismiss finding that the Arkansas Public Service Commission had sole and exclusive jurisdiction under subdivision (a)(1) of this section over Arkansas residential gas customers' claims that they were being charged too much for natural gas because of the company's alleged fraudulent conduct. Centerpoint Energy, Inc. v. Miller County Circuit Court, 370 Ark. 190, 258 S.W.3d 336 (2007).

Municipal Authority.

Section 14-200-101 empowers Arkansas municipalities to assess utility franchises operating within the municipalities, and telephone companies are not excluded. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).

Rates Effective Immediately.

Since courts of equity lack concurrent jurisdiction with the Arkansas Public Service Commission in setting utility rates, rates approved by the commission may be put into effect immediately without posting a bond, and notwithstanding any provision of a municipal franchise such a utility may have been granted. General Tel. Co. v. Lowe, 263 Ark. 727, 569 S.W.2d 71 (1978).

Notes of Decisions
Cited in 7 cases, 1993–2007 · leading case: Arkansas Gas Consumers, Inc. v. Arkansas Pub. Serv. Comm'n, 118 S.W.3d 109 (Ark. 2003).
Sort: Relevance Newest Treatment
Arkansas Gas Consumers, Inc. v. Arkansas Pub. Serv. Comm'n, 118 S.W.3d 109 (Ark. 2003). · cites it 4× “Subsection (1) of § 23-2-304(a) authorizes the Commission to “find and fix just, reasonable, and sufficient rates.” The Commission is further vested with the sole and exclusive jurisdiction and authority to determine the rates to be charged by utilities.”
Centerpoint Energy, Inc. v. Miller Cnty. Circuit Second Div., 258 S.W.3d 336 (Ark. 2007). · cites it 4× “” Ark. Code Ann. § 23-4-201 (a)(1) (Repl. 2002).”
City of Little Rock v. At&t Commc'ns of Sw., Inc., 888 S.W.2d 290 (Ark. 1994). · cites it 4× “The Baioni holding is simply inapplicable to situations where cities are statutorily authorized to assess public utilities franchise fees for the use or occupancy of the cities' rights-of-way. The court of appeals was wrong in failing to recognize this legal or statutory…”
Brandon v. Arkansas Pub. Serv. Comm'n, 992 S.W.2d 834 (Ark. Ct. App. 1999). · cites it 4× “Ark. Code Ann. § 23-4-201 (a)(l) (1987). It is further clear that this jurisdiction extends over rate matters and disputes involving public rights between consumers and public utilities but not to private rights found in tort.”
Cullum v. Seagull Mid-South, Inc., 907 S.W.2d 741 (Ark. 1995). · cites it 2× “Ark. Code Ann. § 23-4-201 (a)(l) (1987). It is further clear that this jurisdiction extends over rate matters and disputes involving public rights between consumers and public utilities but not to private rights found in tort.”
Alltel Arkansas, Inc. v. Arkansas Pub. Serv. Comm'n, 69 S.W.3d 889 (Ark. Ct. App. 2002). · cites it 2× “Ark. Code Ann. § 23-4-201 (a) (1987). Further, the Commission has the responsibility, when faced with unreasonable rates, to fix reasonable ones.”
AT&T Commc'ns of Sw., Inc. v. City of Little Rock, 866 S.W.2d 414 (Ark. Ct. App. 1993). “This code section was amended in 1993 to add “Except as provided in § 23-4-201” at the beginning and to insert “and rates for,” after “each kind of.”
— Ark. Code Ann. § 23-4-201(a) — 1 case
Arkansas Gas Consumers, Inc. v. Arkansas Pub. Serv. Comm'n, 118 S.W.3d 109 (Ark. 2003). “Subsection (1) of § 23-2-304(a) authorizes the Commission to “find and fix just, reasonable, and sufficient rates.” The Commission is further vested with the sole and exclusive jurisdiction and authority to determine the rates to be charged by utilities.”
— Ark. Code Ann. § 23-4-201(a)(1) — 2 cases
Centerpoint Energy, Inc. v. Miller Cnty. Circuit Second Div., 258 S.W.3d 336 (Ark. 2007). “” Ark. Code Ann. § 23-4-201 (a)(1) (Repl. 2002).”
Brandon v. Arkansas Pub. Serv. Comm'n, 992 S.W.2d 834 (Ark. Ct. App. 1999). “Ark. Code Ann. § 23-4-201 (a)(l) (1987). It is further clear that this jurisdiction extends over rate matters and disputes involving public rights between consumers and public utilities but not to private rights found in tort.”
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