N.Y. Comp. Codes R. & Regs. Tit. 16 §§ 720-6.3

Current through Register Vol. 46, No. 50, December 11, 2024

Section 720-6.3 - Proceedings for review of electric fuel adjustment clause operations

(a) In each proceeding before the commission concerning an application for a major change (as defined by Public Service Law, section 66[12]) in the rates, charges or service of any electric public utility, any such public utility proposing to commence or continue the provision of fuel adjustment clauses within its tariff shall offer evidence that:

(1) its fuel costs are subject to fluctuations to the extent that such costs are not susceptible to reasonable estimation in formal rate proceedings; and

(2) its volatile fuel costs constitute a significant proportion of the cost of service provided by the public utility.

(b) Each electric public utility proposing to continue using a fuel adjustment clause shall offer evidence in each proceeding described in subdivision (a) of this section showing that:

(1) all information required by section 720-6.2 of this Subpart has been filed in a timely manner; and

(2) it uses all practicable means to insure the maximum economies in those operations and purchases that affect fuel costs subject to the clause, to the extent such actions are otherwise consistent with its obligations to provide reliable service. The evidence described in this section shall include the sworn testimony of an employee or officer of the public utility relevant to the proof of compliance with the standards set forth in this section. When an electric public utility proposes to continue using a fuel adjustment clause, fuel statements or other filings required by section 720-6.2 of this Subpart shall be considered relevant and admitted into evidence. The public utility shall provide a sponsoring witness familiar with the preparation and contents of any such filings made after the last evidentiary hearings held pursuant to this section.

(c) Public evidentiary hearings concerning compliance with the fuel adjustment clause standards set forth in subdivisions (a) and (b) of this section, shall be held not less often than every four years, with respect to any electric public utility required to file statements pursuant to section 720-6.2 of this Subpart. Consideration of such compliance within a rate case, as provided in subdivision (b) of this section, shall be deemed to be an evidentiary hearing for the purpose of this subdivision. In the event that four years elapse from a public evidentiary hearing of the matters set forth in the preceding paragraph, hearings concerning compliance with the standards set forth in subdivisions (a) and (b) of this section shall be convened.

(d) In the event that two years elapse from the date of the last public evidentiary hearings as to the matters set forth in the preceding subdivisions of this section with respect to any electric public utility required to file statements pursuant to section 720-6.2 of this Subpart, the staff of the Department of Public Service shall review the compliance of the electric public utility with the standards of subdivisions (a) and (b) of this section and report its findings.

(e) The commission may hold hearings upon its own motion, or on the motion of any interested person upon good cause shown, as to the compliance of a public utility with the standards set forth in subdivisions (a) and (b) of this section.

N.Y. Comp. Codes R. & Regs. Tit. 16 §§ 720-6.3