Southwest Arkansas Electric Cooperative Corporation's Proposed Tariff Revision Raises Insurance Coverage Concerns

Strategic Insights -

Southwest Arkansas Electric Cooperative Corporation's proposed tariff revision for complying with 7 CFR 1730, Subpart C has sparked concerns among Arkansas Public Service Commission (APSC) staff. The proposed tariff would require ratepayers to purchase commercial general liability insurance policies with specific requirements, including a minimum $1,000,000 per occurrence limit and $2,000,000 aggregate limit. Staff argues that the proposed requirements are not justified, citing a lack of support from the cooperative.

Key Takeaways:

  • The proposed tariff would require ratepayers to purchase commercial general liability insurance policies with specific requirements, including a minimum $1,000,000 per occurrence limit and $2,000,000 aggregate limit.
  • The Arkansas Public Service Commission (APSC) staff argues that the proposed requirements are not justified, citing a lack of support from the cooperative.
  • The proposed tariff has been linked to concerns raised by the Arkansas Advanced Energy Association (AAEA) regarding net-metering practices of electric distribution cooperatives, as seen in APSC Docket No. 22-043-U.
  • SWAECC's proposal aims to comply with 7 CFR 1730, Subpart C, despite not demonstrating that the proposed requirements are necessary.
  • The APSC staff argues that SWAECC has failed to provide sufficient support for the proposed requirements, including insurance coverage and endorsements.

Statistics:

  • SWAECC's proposed tariff would require ratepayers to purchase commercial general liability insurance policies with a minimum $1,000,000 per occurrence limit and $2,000,000 aggregate limit.
  • The proposal would apply to ratepayers with distributed resource facilities exceeding 2,000 kW.
  • The APSC staff has identified a lack of support from SWAECC for the proposed requirements, citing insufficient documentation and data.
  • APSC Docket No. 22-043-U was established on March 21, 2022, to investigate alleged unauthorized net-metering practices, including requiring excessive insurance coverage.

Sources:

  • BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION OF ) SOUTHWEST ARKANSAS ELECTRIC ) COOPERATIVE CORPORATION FOR A ) DOCKET NO. 24-053-TF PROPOSED TARIFF REVISION REGARDING ) POLICY TO COMPLY WITH 7 CFR 1730, ) SUBPART C
  • APSC Docket No. 22-043-U - Arkansas Advanced Energy Association's motion filed on March 21, 2022