- Introduced -

SB 278 - This act allows electrical corporations to recover reasonably and prudently incurred costs for natural gas and purchased electrical energy through energy adjustment rate schedules. The schedules must be filed with the Public Service Commission (PSC) and may be implemented in conjunction with a general rate proceeding or without a general rate proceeding.

Changes in the rate schedules may be made as frequently as every 30 days. A "true-up" procedure similar to the purchase gas recovery for gas corporation will be used to remedy over-collections. Only certain electrical and natural costs which are specified are recoverable. If an electrical corporation has adjustment rate schedules on file with the PSC, they must also submit an energy adjustment report to the PSC by the 15th of each month. The method for calculating the adjustment rates is specified in a calculation provided in the act. Adjustment rate schedules which are filed with the PSC must included detailed records, workpapers, and calculations for the PSC to make a determination on the level of the energy adjustment rate. Copies of such records must also be provided to the Office of Public Counsel. The adjustment rate schedules will be come effective 30 days after filing and are not subject to suspension by the PSC. Such filings shall be considered on an expedited bases and the procedure for handling such filings is specified.

CINDY KADLEC