Prudence of electric utilities' coal contracts and fuel-procurement practices: the impact on coal-contract negotiations

Journal Article · · W.Va. Law Rev.; (United States)

OSTI ID:6047017

Templeton, A R

Prudence reviews of utility fuel procurement decisions have increased in both number and scope as fuel costs dominate requests for utility rate increases. Some state commissions have disallowed rate increases on the grounds that fuel contracts were imprudent, while other commissions have investigated and even issued guidelines for procurement policies and procedures. Utilities have responded by seeking more flexible contracts, which will affect coal suppliers. Regulators may have to shift their scrutiny if the market should shift back to favor suppliers. The reviews have forced utilities to document their decision-making process to show that they solicited as many bids as possible and attempted to negotiate favorable contracts.

• Research Organization: Univ. of Michigan, Ann Arbor
• OSTI ID: 6047017
• Journal Information: W.Va. Law Rev.; (United States), Journal Name: W.Va. Law Rev.; (United States) Vol. 89:3; ISSN WVLRD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
294001 -- Energy Planning & Policy-- Coal
296000* -- Energy Planning & Policy-- Electric Power
CARBONACEOUS MATERIALS
COAL
CONTRACTS
DECISION MAKING
ELECTRIC UTILITIES
ENERGY EXPENSES
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
LEGAL ASPECTS
MATERIALS
PROCUREMENT
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS