Guideline No. 3 under the Public Utility Regulatory Policies Act of 1978: automatic adjustment clauses standard

Technical Report · Mon Dec 01 04:00:00 EST 1980

DOI:https://doi.org/10.2172/6726079· OSTI ID:6726079

On April 24, 1980, the Department of Energy (DOE) issued a Notice of Proposed Voluntary Guideline for the Automatic Adjustment Clauses Standard Under the Public Utility Regulatory Policies Act of 1978 (45 FR 29234, May 1, 1980). This Notice discusses in the Preamble the public comments DOE received and presents the guideline in its final form as the Appendix. The objective of an automatic adjustment clause is to mitigate the effect on utility revenues of relatively volatile cost items which a utility purchases on a continual basis. The most important of such cost items is fuel, and this guideline focuses primarily on an automatic fuel-adjustment clause. The following are discussed: provision of incentives for effective fuel and power procurement practices; provision of incentives for economic and efficient generation of electricity; incorporation of automatic-adjustment charges into the rate structure; incentives for displacement of scarce fossil fuels in the generation mix; accounting and management audits; design of an automatic-adjustment clause; and need for an automatic-adjustment clause.

• Research Organization: Department of Energy, Washington, DC (USA). Economic Regulatory Administration
• OSTI ID: 6726079
• Report Number(s): DOE/RG-0050
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000 -- Energy Planning & Policy-- Electric Power
COST
DECISION MAKING
ELECTRIC UTILITIES
FUEL ADJUSTMENT MECHANISMS
FUELS
LAWS
NATIONAL ENERGY ACT
PROCUREMENT
PUBLIC UTILITIES
PUBLIC UTILITY REGULATORY POLICIES ACT
RATE STRUCTURE
REGULATIONS
STANDARDS