(a) When a person or corporation is ready to proceed with the construction of his or her or its dam, he or she or it shall present to the Arkansas Public Service Commission his or her or its application for a permit to use the power.
(b) Upon a hearing of the application, the commission may grant to the person or corporation a permit to erect the dam and use the power, and the commission shall fix a minimum and maximum compensation per horsepower to be received by the corporation for the use of the power so generated.
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