The Arkansas Public Service Commission (PSC) has rejected a set of promotional programs proposed by Southwestern Electric Power Co. that included incentives for customers to install heat pumps and electric hot water heaters. The PSC found that the programs came down heavily on the side of fuel substitution as opposed to serving conservation goals. It applied a two-step cost-benefit procedure (em a first stage screening with the Total Resource Cost test and then a final examination under the Ratepayer Impact Measure test, finding that the programs would not benefit the general body of utility ratepayers in the state. Re Southwestern Electric Power Co., Docket No. 94-191-P, Order No. 10, July 14, 1995 (Ark.P.S.C.).
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