Recent cases on automatic fuel-adjustment clauses. [FERC and state PUC rulings]

Journal Article · Thu Mar 13 04:00:00 EST 1980 · Public Util. Fortn.; (United States)

OSTI ID:5353924

Rates for most utility service to a customer contain two charges. The demand charge is used to recover relative fixed costs of supplying power. The second, the energy charge, recovers the variable costs of enery supplies. The energy charge most often also contains a fuel-adjustment clause to allow utilities to automatically adjust the energy charge to cover fluctuating costs of fuels. Public utility commissions in several states are reviewing fuel-adjustment clauses to insure that the adjustments comply with the original purpose to be for the ultimate benefit of the customer. Commissions in Missouri, Hawaii, California, Vermont, Texas, and Maryland have looked into the fuel-adjustment clauses for utilities under their jurisdiction. Various mechanisms for change are being tried to refine the guidelines. The Federal Energy Regulatory Commission (FERC) has also begun closer strutiny of fuel costs passed along to consumers through the fuel-adjustment clause. FERC seems to be shifting the burden of proof upon utility companies to provide sufficient evidence to support energy costs. (SAC)

• OSTI ID: 5353924
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 105:6; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
ELECTRIC UTILITIES
FUEL ADJUSTMENT MECHANISMS
GOVERNMENT POLICIES
LAWS
NATIONAL ORGANIZATIONS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
STATE GOVERNMENT
US DOE
US FERC
US ORGANIZATIONS