Texas Register, Volume 13, Number 60, Pages 3791-3856, August 5, 1988 Page: 3,809
3791-3856 p. ; 28 cm.View a full description of this periodical.
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which the factor will be in effect. If, due to
unique circumstances, such a calculation is
not appropriate for a particular utility, a
different method of calculation may be
used. When approved by the commission,
the utility's fixed fuel factor:
(A)[(i)] may be designed to
account for seasonal differentiation of fuel
costs; and
(B)[(ii)] shall be designed to
account for system losses and for differ-
ences in line losses corresponding to the
voltage level of service.
(4)[(D)] Unless requested by a
party to the proceeding, petitions to lower a
utility's fuel factor may be approved by the
commission without an evidentiary hearing.
A lower interhnim fuel factor may be estab-
lished and placed in effect in the first full
billing cycle beginning no earlier than five
days after the tariff is approved. An initial
prehearing conference shall be conducted in
all such proceedings no later than the 21st
day following the filing of the petition and
any person .who fails to attend such
prehearing conference may be dismissed as
a party or refused party status.
(A)[(i)] An interim fuel pro-
ceeding, to lower a utility's fixed fuel factor
shall be conducted when either:
(i)[(I)] the utility has ma-
terially over-recovered and projects to ma-
terially over-recover its known or
reasonably predictable fuel costs. In such
instance, the utility shall file a petition with
the commission to lower its existing fuel
factor and establish a new interim fuel fac-
tor. The petition shall clearly state all of the
reasons for lowering the utility's existing
fuel factor, and provide support for the new
interim fuel factor. The commission may
establish standards for the information and
format that shall be contained in such peti-
tions; or
(ii)[(II)] upon information
and belief, the commission's general coun-
sel, or any affected person, avers that the
utility has materially over-recovered and
projects that the utility will materially over-
recover its known or reasonably predictable
fuel costs, and files a petition with the
commission to lower the utility's existing
fuel factor and establish a new interim fuel
factor.
(B)[(ii)] For the purposes of
determining whether a utility shall has ma-
terially over-recovered or projects that the
utility will materially over-recover its
known or reasonably predictable fuel costs,
fuel costs associated with a nuclear genera-
tion plant subject to a deferred accounting
order of the commission, or which is not
recognized as plant-in-service in rates by
the commission, are not considered' knownor reasonably predictable fuel costs, and the
recovery of fuel costs incurred in connec-
tion with such generation plant shall not be
included in the utility's fuel factors, but
shall be treated separately as the commis-
sion may order.
(C)[(iii)] Materially or mate-
rial, as used in this subsection, [paragraph]
shall mean that the cumulative amount of
over- or under-recovery including interest,
is [the lesser of $40 million or] 4.0% of the
annual known or reasonably predictable
fuel cost figure [most recently] adopted by
the commission in the utility's last general
rate proceeding, as amended by subse-
quent fuel reconciliation or Interim fuel
proceedings. [as shown by the utility's fuel
filings with the commission.] The annual
known or reasonably predictable fuel
costs upon which materially is based will
not consider any over- or under-
recoveries of fuel cost amounts which are
used to calculate refund or recovery fac-
tors.
(5) A petition to increase an
existing fuel factor or establish recovery
factors for recovering a material cumula-
tive under-recovery balance shall clearly
state all reasons for increasing the utili-
ty's existing fuel factor or establishing
recovery factors or both. The petition
shall set forth the fuel costs and the on-
system kilowatt-hour sales predicted for
the period in which the new interim fuel
factors will be in effect, or the amount of
the cumulative under-recovery balances
by rate class which are used to establish
recovery factors or both. The petition
shall be supported by testimony that sets
forth specifically and in detail the basis
for these amounts. The commission shall
act on the petition filed after an abbrevi-
ated hearing procedure, but in any case
within 45 days from the date of the filing.
All motions to intervene shall be filed
within 15 days from the date of the filing.
If any such motions for intervention are
filed, the commission or hearings exam-
iner shall hold a hearing at 9 a.m. on the
fifth working day following the 15th-day
period to determine whether an interven-
tion will be granted or denied and to
classify or consolidate the intervenors for
hearing purposes and to hear any other
motion concerning the petition. All pro-
tests shall be filed within 30 days from
the date of the filing and must set forth
the grounds of the protest clearly and
specifically. The burden of proof shall be
upon the utility to establish that the
known or reasonably predictable fuel
costs are reasonable and that any recov-
ery factors for cumulative under-
recovery balances are reasonable. New
interim fuel factors and any recovery fac-
tors for cumulative under-recovery bal-
ances shall be subject to final review and
reconciliation at the utility's next general
rate case or fuel reconciliation proceed-ing. Additional data may be required by
the commission subsequent to the filing.
(6)[(E)] If fuel curtailments,
equipment failure, strikes, embargoes, sanc-
tions, or other reasonably unforeseeable cir-
cumstances have resulted in a material
under-recovery of known or reasonably pre-
dictable fuel costs, the utility may file a
petition with the commission requesting an
emergency interim fuel factor. Such emer-
gency requests shall state the nature of the
emergency, the magnitude of change in fuel
costs resulting from the emergency circum-
stances, and other information required to
support the emergency interim fuel factor.
The commission shall issue an interim order
within 30 days after such petition is filed to
establish an interim emergency fuel factor.
If within 120 days after implementation, the
emergency interim factor is found by the
commission to have been excessive, the
utility shall refund all excessive collections
with interest at the utility's composite cost
of capital as established in the utility's most
recent rate proceeding before the commis-
sion. Such interest shall be calculated on the
cumulative monthly over-recovery balance.
If, after full investigation, the commission
determines that no emergency condition ex-
isted, a penalty of up to 10% of such over-
collections may also be imposed on
investor-owned utilities.
(7)[(F)] All refunds shall be
made by the utility pursuant to the methods
outlined in paragraph (8) [subparagraph
(G)] of this subsection [paragraph].
(A)[(i)] A utility may peti-
tion for interim refunds at any time. Such
refund petitions may be approved by the
commission without a hearing.
(B)[(ii)] Any petition filed
under paragraph (4) of this subsection
[subparagraph (D)(i)(II) of this paragraph]
may include a petition for interim refunds.
Such refund petitions may be approved by
the commission without a hearing, upon
agreement of the parties.
(C)[(iii)] If, at the conclusion
of a general rate case, reconciliation pro-
ceeding, or interim fuel proceeding, the
commission determines that, sometime
since the utility's last general rate case,
reconciliation proceeding, or interim fuel
proceeding, a material over-recovery of
known or reasonably predictable fuel costs
has occurred and was concurrently pro-
jected to occur, and the utility failed to file
a petition pursuant to paragraph (7)(A)
[(subparagraph (F)(i)] of this subsection,
[paragraph] the refunds to be made may
include a penalty of up to 10% of the
amount that should have been refunded at
the time.
(8)[(G)] All refunds or recoup-
ments of under-recoveries shall be made
using the following methods.* Proposed Sections August 5, 1988 13 TexReg 3809
* Proposed Sections
August 5, 1988 13 TexReg 3809
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Texas. Secretary of State. Texas Register, Volume 13, Number 60, Pages 3791-3856, August 5, 1988, periodical, August 5, 1988; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth220268/m1/19/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.