Okla. Admin. Code § 165:50-5-1

Current through Vol. 42, No. 7, December 16, 2024

Section 165:50-5-1 - Authorization for use of adjustment clauses

(a) If upon application by any public utility, after investigations and public hearing, the Commission finds that the changes in the price of fuels required for the generation of electricity by any electric public utility, the changes in the price of purchased electricity required for distribution by any public utility, or the changes in the price of purchased gas required for distribution by any gas utility portends a likely and substantial threat to the ability of the utility to earn a reasonable rate of return, or are likely to cause the utility to have an excessive rate of return, or are likely to substantially impair the ability of the utility to acquire adequate supplies of fuel or gas, the Commission may approve suitable fuel adjustment clauses to be superimposed upon the existing rate schedules of the public utility. The Commission shall design the fuel adjustment clause to allow the electric or gas public utility to increase or decrease charges to the consumer according to changes in the cost of fuel, purchased power, or purchased gas as compared to the price of such fuels or power as reflected in the base rates.

(b) Insofar as feasible, the standard fuel and purchased gas adjustment provision adopted pursuant to 165:50-3-2, shall be employed by public utilities subject to the jurisdiction of the Commission. However, each public utility which applies, pursuant to (a) of this Section, for authorization to employ fuel, purchased gas, and/or purchased power adjustment clauses shall be entitled to show that by reason of special circumstances affecting such utility, the standard provisions or portions thereof are not appropriate for use by it; in such case the Commission shall prescribe an appropriate clause for such utility, which clause shall, however, conform to the requirements of 165:50-3-1.

(c) Notice of hearings held pursuant to (a) of this Section shall be given in the form and manner prescribed by the Commission

Okla. Admin. Code § 165:50-5-1

Amended at 10 Ok Reg 2647, eff 6-25-93