Understanding Arkansas HVAC regulatory oversight is essential for contractors, businesses, and homeowners navigating the state's energy landscape. Arkansas's regulatory environment involves multiple agencies overseeing utility rates, contractor licensing, and energy policy. This comprehensive guide covers everything you need to know about Arkansas HVAC regulations heading into 2026.
The regulatory oversight framework in Arkansas affects how HVAC contractors operate, what utility rates consumers pay, and how energy infrastructure develops across the state. Whether you're an HVAC contractor seeking licensure or a business evaluating Arkansas's energy market, understanding these regulatory structures is critical for success.
Arkansas Public Service Commission: Primary Regulatory Oversight
The Arkansas Public Service Commission (PSC) serves as the primary regulatory body for Arkansas's public utilities. The PSC is a quasi-executive, quasi-legislative, and quasi-judicial body that regulates the state's electricity, natural gas, telecommunications, water, and pipeline safety utilities.
The Arkansas PSC consists of three Commissioners appointed by the Governor. Individual commissioners must have resided in Arkansas for five years and be a qualified elector. Commissioners may not have any pecuniary interest in the utilities they regulate. The agency has 108 regular staff positions divided between Commissioners' Staff, PSC General Staff, and the Tax Division.
The PSC's primary responsibilities are to ensure that utility service is safe and adequate and that rates are just and reasonable. The commission ensures utilities receive a fair return on invested capital while consumers do not pay more than necessary. The PSC also manages property taxes for public utilities and carriers.
Agency: Arkansas Public Service Commission
Address: P.O. Box 400, Little Rock, AR 72201-0400
Hours: Monday-Friday, 8:00 a.m. - 4:30 p.m.
Website: https://apsc.arkansas.gov/
Understanding Arkansas's Regulatory Environment for 2026
The regulatory environment in Arkansas is seeing significant activity as the PSC addresses multiple rate increase requests. As of late 2025, the commission is hearing 10 proposed electric utility rate changes expected to be decided by end of 2025 or sometime in 2026.
Key regulatory considerations for 2026 include:
SWEPCO Rate Increase: Southwestern Electric Power Company is seeking a $30.46 per month residential base rate increase (27.3% for average customers) to account for new wind farms and grid improvements. A decision is expected in early 2026.
Generation Capacity Legislation: Senate Bill 307 (the "Generating Arkansas Jobs Act") would allow utilities to make capital investments without prior PSC permission and pass costs to customers more easily. The bill remains controversial.
Regional Transmission Organizations: Entergy Arkansas is a member of Midcontinent Independent System Operator (MISO), while SWEPCO, OG&E, and Empire District are members of Southwest Power Pool (SPP).
Arkansas HVAC Licensing Requirements for 2026
The Arkansas Department of Labor and Licensing governs all HVAC licensing through the HVAC/R Board. HVAC technicians do not need a license but must register with the state and work under a licensed contractor. HVAC contractors must be licensed.
Arkansas makes it relatively easy to start in the HVAC field. There are no apprenticeship, educational, or legal requirements to begin working, though employers and EPA certification requirements still apply.
There are six HVAC license classifications in Arkansas:
Class A: Permits work on HVAC/R systems without limitation to BTUH or horsepower capacities.
Class B: Permits work on air conditioning/heating systems up to 15 tons cooling capacity or 1 million BTUH heating, and refrigeration systems up to 15 HP.
Class C: Permits service, repair, and component replacement (but not new system installation) on systems up to 15 tons/1 million BTUH/15 HP.
Class D: Permits sheet metal work for duct systems. Cannot sell, install, or service HVAC/R equipment.
Class E: Permits refrigeration work without horsepower limitation. Cannot sell, install, or service heating/air conditioning equipment.
Class L (Lifetime): For contractors 65 and older. Permits service and maintenance work (no new equipment installation) without annual renewal.
Pathways to Arkansas HVAC Licensure
To qualify for an Arkansas HVAC contractor license, applicants must meet these requirements:
Experience Path: At least two years of experience working as an HVAC technician under a licensed contractor.
Education Path: Graduate from a board-approved HVAC/R training program including at least six months of hands-on experience or field work after graduation.
Age Requirement: Must be at least 18 years old.
Examination: Pass the Arkansas HVAC/R Contractor exam administered by Prov Testing Services with a minimum score of 70%.
HVAC License Fees and Requirements
The following fees apply to Arkansas HVAC licensing in 2026:
Class A License Fee: $200 annually
Class B, D, E License Fee: $150 annually
Class C License Fee: $100 annually
Class L License Fee: No initial fee (lifetime license)
Exam Fee: $80 computer-based / $56 paper-pencil
Technician Registration: $25 annually
License Renewal: 25% of initial license fee
All Arkansas HVAC contractors (Class A-E) must complete 8 hours of continuing education annually and maintain general liability insurance with minimum coverage of $250,000 (as of 2022). Projects over $50,000 require a state contractor's license, workers' compensation coverage, and a $10,000 surety or cash bond.
Agency: Arkansas Department of Labor and Licensing - HVAC/R Board
Phone: (501) 682-4500
Website: labor.arkansas.gov/hvac-r
Reciprocal HVAC Licensing Agreements
Arkansas has reciprocal licensing agreements with Alabama, Tennessee, Mississippi, and Louisiana if the license has been held for at least 3 years. The Arkansas HVAC/R Board evaluates reciprocal applications on a case-by-case basis. Out-of-state applicants must still comply with Arkansas insurance and bonding requirements.
Directory of Arkansas Electric Companies
Arkansas has 41 gas and electric utilities including four investor-owned electric utilities, one generation and transmission cooperative, and 18 distribution cooperatives that make up the Electric Cooperatives of Arkansas.
Arkansas Investor-Owned Utilities
| Company Name | Website | Utility Type |
|---|---|---|
| Entergy Arkansas | entergy.com/arkansas | Investor-Owned |
| Southwestern Electric Power Co. (SWEPCO) | swepco.com | Investor-Owned |
| Oklahoma Gas & Electric (OG&E) | oge.com | Investor-Owned |
| Empire District Electric | libertyutilities.com | Investor-Owned |
Arkansas Electric Cooperatives
| Company Name | Website | Utility Type |
|---|---|---|
| Arkansas Electric Cooperative Corporation (AECC) | aecc.com | G&T Cooperative |
| Arkansas Valley Electric Cooperative | avecc.com | Cooperative |
| C & L Electric Cooperative | clelectric.com | Cooperative |
| Carroll Electric Cooperative | carrollelectric.com | Cooperative |
| Craighead Electric Cooperative | craigheadelectric.coop | Cooperative |
| First Electric Cooperative | firstelectric.coop | Cooperative |
| North Arkansas Electric Cooperative | naeci.com | Cooperative |
| Ozarks Electric Cooperative | ozarksecc.com | Cooperative |
| Petit Jean Electric Cooperative | pjecc.com | Cooperative |
| Rich Mountain Electric Cooperative | rmec.coop | Cooperative |
| South Central Arkansas Electric Cooperative | scaec.coop | Cooperative |
| Southwest Arkansas Electric Cooperative | swaecc.com | Cooperative |
| Woodruff Electric Cooperative | woodruffelectric.com | Cooperative |
Arkansas Municipal Utilities
| Company Name | Website | Utility Type |
|---|---|---|
| Conway Corporation | conwaycorp.com | Municipal |
| Jonesboro City Water and Light | jonesborocwl.com | Municipal |
| Hope Water & Light | cityofhope.net | Municipal |
| Osceola Municipal Utilities | cityofosceola.com | Municipal |
| Paragould Light Water & Cable | paragouldcity.org | Municipal |
| West Memphis Utilities | westmemphisutilities.com | Municipal |
Energy Policy and Code Adoption in Arkansas
Arkansas has adopted the International Mechanical Code 2021 version as of July 1, 2022. The Arkansas Department of Labor and Licensing supervises mechanical and fuel gas code inspections for public and private facilities throughout the state.
The Arkansas Energy Code is adopted by the Arkansas Department of Energy and Environment, Office of Energy. This code sets minimum energy efficiency standards for residential and commercial buildings.
