Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 425 - UNIFORM ELECTRIC FUEL ADJUSTMENT › Section 425.40 - Interpretation

Current through Register Vol. 48, No. 28, July 12, 2024
a) Economic dispatch.
			 Economic dispatch means the operation of the electric utility's system, utilizing
			 the source of available power to achieve minimum overall costs, taking into
			 consideration the utility's voltage, frequency, reliability, environmental, safety
			 and service quality requirements, as well as the utility's existing contractual
			 obligations. The utility shall adhere to the principles of economic dispatch unless
			 under unusual circumstances the prudent operation of the utility's system dictates
			 otherwise. If there is a deviation from economic dispatch or any use of less than
			 100% of the fuel cost of any resource in the dispatch, the deviation shall be fully
			 explained in the initial monthly filing after the facts giving rise to such
			 deviation first occur. Subsequent filings which continue to be affected by facts
			 previously explained need not be accompanied by such explanation.
b) Billing period. The billing period is defined
			 as the period beginning with the first billing cycle of the month for which the FAC
			 is being determined and ending with the last billing cycle thereof.
c) Allowable fuel and fuel related charges (CF).
1) The cost of fuel shall include the direct cost
			 of fuel delivered at the generating plants. The direct fossil fuel costs are limited
			 to costs entered into fuel expense Accounts #501 and #547 which have been cleared
			 upon consumption from Fuel Stock Account #151, or in the case of gas fuel the amount
			 which is charged directly to Accounts #501 or #547. Costs cleared from Fuel Stock
			 Accounts #152 and #153 are specifically excluded. The cost of fuel used in the
			 generation or production of electric power shall not include transportation costs of
			 coal (this exclusion includes items 2, 4, and 5 of Fuel Stock Account #151) except
			 as otherwise provided in this subsection. Such costs of fuel shall, when requested
			 by a utility or at the conclusion of the utility's next general electric rate
			 proceeding, whichever shall first occur, include transportation costs of coal
			 purchased under existing coal purchase contracts. For purposes of this subsection
			 "existing coal purchase contracts" means contracts for the purchase of coal in
			 effect on August 27, 1991, as such contracts may thereafter be amended, but only to
			 the extent that any such amendment does not increase the aggregate quantity of coal
			 to be purchased under such contract (Section 9-220 of the Public Utilities Act
			 ("Act") [220 ILCS
			 5/9-220 ]).
2)
			 The cost of nuclear fuel shall be that as expensed in Account #518, including
			 provisions for storage and disposal of spent nuclear fuel including spent fuel
			 disposal fees, except that handling costs for nuclear fuel assemblies or any expense
			 for fossil fuel which has already been included in the costs of fossil fuel, are
			 specifically excluded.
3) The consumed
			 fuel costs associated with test generation shall be included in allowable fuel and
			 fuel related charges to the extent they are equal to or less than the average fuel
			 costs of the utility's other units operated during the period for which the FAC is
			 being determined. Average fuel costs equal total fuel costs of a utility's
			 generating facilities less the cost of test generation, divided by total net
			 generation less test generation.
4)
			 Where the cost of fuel includes fuel and/or transportation costs from company owned
			 or controlled services (in whole or in part), that fact shall be noted and described
			 as part of any filing.
5) With respect
			 to the price of fuel purchases or transportation services from company or controlled
			 sources pursuant to contracts which are not subject to regulatory authority, the
			 utility company shall file such contracts and amendments thereto annually with the
			 Commission.
6) Fuel or transportation
			 charges by affiliated companies which do not appear to be reasonable may result in
			 the suspension of the fuel adjustment clause or cause an investigation thereof to be
			 made by the Commission on its own motion. Any suspension of the fuel adjustment
			 clause may occur if, after a hearing, a finding is made that such charges of a
			 utility are unreasonable.
7) The cost of
			 fuel shall include the direct cost of purchasing or otherwise acquiring, for utility
			 operations purposes, emission allowances, created under the Federal Clean Air Act
			 Amendments of 1990 ( Pub. L.
			 101-549 ) including the emission allowances allocated
			 to the utility by the United States Environmental Protection Agency, limited to the
			 following:
A) The costs cleared from Account #158.1
			 - Allowance Inventory, and charged to Account #509 - Allowances, concurrent with the
			 monthly emission of sulfur dioxide;
B)
			 The gains cleared from Account #254 - Other Regulatory Liabilities, and credited to
			 Account #411.8 - Gains from Disposition of Allowances; and
C) The losses charged to Account #411.9 - Losses
			 from Disposition of Allowances.