(a) The marketing, selling, or marketing and selling of demand response within the State of Arkansas by electric public utilities or aggregators of retail customers to retail customers or by electric public utilities, aggregators of retail customers, or retail customers into wholesale electricity markets is subject to regulation by:
(1) The Arkansas Public Service Commission under Acts 1935, No. 324, as amended; or
(2) The local governing authority in the case of a municipally owned electric utility or a consolidated municipal utility improvement district.
(b) The commission:
(1) May establish the terms and conditions for the marketing, selling, or marketing and selling of demand response by electric public utilities or aggregators of retail customers to retail customers or by electric public utilities, aggregators of retail customers, or retail customers into wholesale electricity markets; and
(2) Shall not regulate demand response investments or demand response actions of a retail customer on the customer's side of the electric meter.