Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 50 - Fuel, Purchased Gas, and Purchased Power Adjustment Clauses › Subchapter 3 - Contents and Standard Provisions of Adjustment Clauses › Section 165:50-3-1 - Contents of adjustment clauses

Current through Vol. 41, No. 20, July 1, 2024
This Chapter shall apply in the design of all fuel, purchased
				  gas, and purchased power adjustment clauses:
(1) For the purpose of determining fuel or
				gas costs, the price paid for the fuel or gas shall be computed at the actual
				cost of fuel or gas purchased from nonaffiliated persons, firms, and
				corporations; and the actual cost of the production of fuel owned by the public
				utility or received from affiliated persons, firms or corporations, and in the
				case of gas, the fair field price for gas owned by the public utility or
				received from affiliated persons, firms, or corporations.
(2) The cost of fuel or gas shall be the
				price paid at the point of delivery into the utility system. In the event the
				transportation is performed by an affiliated person, firm, or corporation as
				defined in
				165:50-1-2, which is
				not subject to the regulatory jurisdiction of the Commission, a regulatory
				agency of another state having jurisdiction, or the Federal Energy Regulatory
				Commission or successor agency, the charges made for transportation shall be,
				if allowed at all, only such as the Commission finds fair, just, and
				reasonable, for purposes of this Chapter. Transportation charges approved by
				this Commission, a regulatory agency of another state having jurisdiction, or
				by the Federal Energy Regulatory Commission, or successor agency shall be
				included for purposes of this Chapter, if allowed by the Commission. In
				instances where the affiliate's approved transportation charges are adjustable,
				the Commission may evaluate the reasonableness of the rate paid in terms of the
				maximum and minimum allowed by the adjustable charges, taking into account all
				of the terms and conditions of, and the circumstances surrounding, the
				transportation service being provided. The proposed adjustment charge shall not
				include the cost of transportation beyond its point of delivery into that
				portion of the utility system regulated by the Commission unless there is
				presented to the Commission and the Commission is persuaded by reliable
				evidence which clearly points to the conclusion that failure to do so will
				substantially threaten the ability of the utility to earn a reasonable rate of
				return.
(3) The amount of electric
				energy produced by hydro-electric generating plants and purchased by the public
				utility proposing the adjustment charge shall be deducted from the amount of
				electric energy to which any fuel cost applies.
(4) The actual efficiency or heat rate of
				electric public utilities shall be utilized and line losses shall be considered
				only if reliable evidence clearly points to the conclusion that failure to do
				so will substantially threaten the ability of the utility to earn a reasonable
				rate of return.
(5) Fuel removed
				from stockpiles or gas removed from storage shall be taken into consideration
				on the basis of the last-in first-out method of inventory accounting.
(6) No estimated fuel adjustment shall be
				allowed.
(7) Each public utility
				authorized by the Commission to recover the cost of fuel, purchased gas, or
				purchased power shall adhere to the standard fuel, purchased gas, or purchased
				power adjustment provisions of this Chapter unless the Commission determines
				after an appropriate evidentiary hearing that the public interest is better
				served by permitting the utility to file a special tariff for the recovery of
				costs addressed in this Chapter.
Amended at 12 Ok Reg
				  2139, eff 7-1-95