Automatic adjustment clauses in public-utility rate schedules. A staff report on the implementation of Section 208 of the Public Utility Regulatory Policies Act of 1978
The Public Utility Regulatory Policies Act (PURPA), enacted November 8, 1978, directs the Federal Energy Regulatory Commission to make a comprehensive review of certain matters related to automatic adjustment clauses in electric rate schedules used by public utilities subject to the Commission's jurisdiction. The first requirement is that the Commission review automatic adjustment clauses in utility rate schedules to examine whether the clauses effectively provide incentives for efficient use of resources and also whether the clauses reflect only those costs that are either subject to periodic fluctuations or not susceptible to precise determinations in rate cases prior to the time the costs are incurred. The second requirement is that the Commission review the practices of each public utility under automatic adjustment clauses to insure efficient use of resources under such clauses. In response to these requirements, the Commission instituted a study and a staff investigation to examine the matters specifically identified in the Act. This report describes the progress that has been made in the study during the first two years since the passage of the Act related to the issues involved. The principal types of automatic adjustment clauses appearing in rate schedules subject to FERC jurisdiction are described and the extent of use of the types of clauses is indicated. The nature and results of the efforts made to analyze incentive effects, variability and predictability of certain costs, and the fuel procurement practices of utilities as related to automatic adjustment clauses are discussed. Preliminary staff conclusions from the review and analysis effort are presented.
- Research Organization:
- USDOE Federal Energy Regulatory Commission, Washington, DC
- OSTI ID:
- 5459532
- Report Number(s):
- DOE/NBM-2010799; ON: DE82010799
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
296000* -- Energy Planning & Policy-- Electric Power
AUTOMATION
COST
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY CONSERVATION
ENERGY CONSUMPTION
ENERGY SYSTEMS
FUEL CONSUMPTION
INTERCONNECTED POWER SYSTEMS
LAWS
NATIONAL ENERGY ACT
NATIONAL ORGANIZATIONS
POWER
POWER GENERATION
POWER PLANTS
POWER SYSTEMS
PUBLIC UTILITIES
PUBLIC UTILITY REGULATORY POLICIES ACT
RATE STRUCTURE
REGULATIONS
US DOE
US FERC
US ORGANIZATIONS