Opinion ID: 2391090
Heading Depth: 1
Heading Rank: 2

Heading: The Surcharge

Text: The commission also ordered that any uncollected fuel adjustment revenues as of April 30, 1976 caused by the lag under the 1974 clause would be collected, over a period of not less than twelve months, under a surcharge collection plan to be submitted by each utility. The surcharge was designed to recover fuel cost increases incurred up to April 30, 1976 for which increases in fuel adjustment charges to the customer had not been made because (as a result of the lag required by the 1974 order), these charges were not collectible under the procedures prescribed in the 1974 order before that order expired on May 31, 1976. These charges were also not permitted to be collected under the FAC approved on April 14, 1976, which only became effective for billings commencing June 1, 1976. Two dissenting opinions were filed. Commissioner Fain pointed out that the FAC had been initially approved only on a temporary basis, and concluded that it was not very useful as a regulatory tool, particularly in that it had not substantially lessened the commission's caseload. He also stated that permitting use of the FAC to cover out-of-state purchased power was undesirable because it is difficult to police purchases from outside the commission's jurisdiction. He did note that commendable additional safeguards had been added. Commissioner Mulvaney also dissented. Although feeling the clause was greatly strengthened, he believed policing difficulties and general confusion over it required its elimination.