The company recently sent letters to customers explaining the need to raise fuel costs. We would prefer not to raise prices and hope to avoid doing so in the future,'' TXU executive vice president Dan Farell recently wrote to customers. Electric utilities routinely ask that the PUC give them permission to recover the cost of fuel, which is a pass-through cost to the consumer with no profit allowed for the company. Company officials periodically review the amount charged for fuel, compared with the rate paid for fuel. Twice a year, they may ask the commission to adjust customer rates.
Charges increase when fuel costs go up.
And when those costs decline, companies ask the PUC to grant a refund to customers. Costs have remained pretty constant for seven years,'' Schein said. Now we are looking at fuel costs and see some peaks and valleys. TXU's request follows those by other electric utilities, including AEP, WTU's parent corporation, said Terry Hadley, a PUC spokesman. AEP is WTU's parent corporation.