18 CFR 35.14 - Fuel cost and purchased economic power adjustment clauses.

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§ 35.14 Fuel cost and purchased economic power adjustment clauses.
(a) Fuel adjustment clauses (fuel clause) which are not in conformity with the principles set out below are not in the public interest. These regulations contemplate that the filing of proposed rate schedules, tariffs or service agreements which embody fuel clauses failing to conform to the following principles may result in suspension of those parts of such rate schedules, tariffs, or service agreements:
(1) The fuel clause shall be of the form that provides for periodic adjustments per kWh of sales equal to the difference between the fuel and purchased economic power costs per kWh of sales in the base period and in the current period:
Adjustment Factor =Fm/Sm-Fb/Sb
Where: F is the expense of fossil and nuclear fuel and purchased economic power in the base (b) and current (m) periods; and S is the kWh sales in the base and current periods, all as defined below.
(2) Fuel and purchased economic power costs (F) shall be the cost of:
(i) Fossil and nuclear fuel consumed in the utility's own plants, and the utility's share of fossil and nuclear fuel consumed in jointly owned or leased plants.
(ii) The actual identifiable fossil and nuclear fuel costs associated with energy purchased for reasons other than identified in paragraph (a)(2)(iii) of this section.
(iii) The total cost of the purchase of economic power, as defined in paragraph (a)(11) of this section, if the reserve capacity of the buyer is adequate independent of all other purchases where non-fuel charges are included in either F b or F m;
(iv) Energy charges for any purchase if the total amount of energy charges incurred for the purchase is less than the buyer's total avoided variable cost;
(v) And less the cost of fossil and nuclear fuel recovered through all inter-system sales.
(3) Sales (S) must be all kWh's sold, excluding inter-system sales. Where for any reason, billed system sales cannot be coordinated with fuel costs for the billing period, sales may be equated to the sum of: (i) Generation, (ii) purchases, (iii) exchange received, less (iv) energy associated with pumped storage operations, less (v) inter-system sales referred to in paragraph (a)(2)(iv) of this section, less (vi) total system losses.
(4) The adjustment factor developed according to this procedure shall be modified to properly allow for losses (estimated if necessary) associated only with wholesale sales for resale.
(5) The adjustment factor developed according to this procedure may be further modified to allow the recovery of gross receipts and other similar revenue based tax charges occasioned by the fuel adjustment revenues.
(6) The cost of fossil fuel shall include no items other than those listed in Account 151 of the Commission's Uniform System of Accounts for Public Utilities and Licensees. The cost of nuclear fuel shall be that as shown in Account 518, except that if Account 518 also contains any expense for fossil fuel which has already been included in the cost of fossil fuel, it shall be deducted from this account. (Paragraph C of Account 518 includes the cost of other fuels used for ancillary steam facilities.)
(7) Where the cost of fuel includes fuel from company-owned or controlled 1 sources, that fact shall be noted and described as part of any filing. Where the utility purchases fuel from a company-owned or controlled source, the price of which is subject to the jurisdiction of a regulatory body, and where the price of such fuel has been approved by that regulatory body, such costs shall be presumed, subject to rebuttal, to be reasonable and includable in the adjustment clause. If the current price, however, is in litigation and is being collected subject to refund, the utility shall so advise the Commission and shall keep a separate account of such amounts paid which are subject to refund, and shall advise the Commission of the final disposition of such matter by the regulatory body having jurisdiction. With respect to the price of fuel purchases from company-owned or controlled sources pursuant to contracts which are not subject to regulatory authority, the utility company shall file such contracts and amendments thereto with the Commission for its acceptance at the time it files its fuel clause or modification thereof. Any subsequent amendment to such contracts shall likewise be filed with the Commission as a rate schedule change and may be subject to suspension under section 205 of the Federal Power Act. Fuel charges by affiliated companies which do not appear to be reasonable may result in the suspension of the fuel adjustment clause or cause an investigation thereof to be made by the Commission on its own motion under section 206 of the Federal Power Act.

Footnote(s):
1 As defined in the Commission's Uniform System of Accounts 18 CFR part 101, Definitions 5B.

(8) All rate filings which contain a proposed new fuel clause or a change in an existing fuel clause shall conform such clauses with the regulations. Within one year of the effectiveness of this rulemaking, all public utilities with rate schedules that contain a fuel clause should conform such clauses with the regulations. Recognizing that individual public utilities may have special operating characteristics that may warrant granting temporary delays in the implementation of the regulations, the Commission may, upon showing of good cause, waive the requirements of this section of the regulations for an additional one-year period so as to permit the public utilities sufficient time to adjust to the requirements.
(9) All rate filings containing a proposed new fuel clause or change in an existing fuel clause shall include:
(i) A description of the fuel clause with detailed cost support for the base cost of fuel and purchased economic power or energy.
(ii) Full cost of service data unless the utility has had the rate approved by the Commission within a year, provided that such cost of service may not be required when an existing fuel cost adjustment clause is being modified to conform to the Commission's regulations.
(10) Whenever particular circumstances prevent the use of the standards provided for herein, or the use thereof would result in an undue burden, the Commission may, upon application under § 385.207 of this chapter and for good cause shown, permit deviation from these regulations.
(11) For the purpose of paragraph (a)(2)(iii) of this section, the following definitions apply:
(i) Economic power is power or energy purchased over a period of twelve months or less where the total cost of the purchase is less than the buyer's total avoided variable cost.
(ii) Total cost of the purchase is all charges incurred in buying economic power and having such power delivered to the buyer's system. The total cost includes, but is not limited to, capacity or reservation charges, energy charges, adders, and any transmission or wheeling charges associated with the purchase.
(iii) Total avoided variable cost is all identified and documented variable costs that would have been incurred by the buyer had a particular purchase not been made. Such costs include, but are not limited to, those associated with fuel, start-up, shut-down or any purchases that would have been made in lieu of the purchase made.
(12) For the purpose of paragraph (a)(2)(iii) of this section, the following procedures and instructions apply:
(i) A utility proposing to include purchase charges other than those for fuel or energy in fuel and purchased economic power costs (F) under paragraph (a)(2)(iii) of this section shall amend its fuel cost adjustment clause so that it is consistent with paragraphs (a)(1) and (a)(2)(iii) of this section. Such amendment shall state the system reserve capacity criteria by which the system operator decides whether a reliability purchase is required. Where the utility filing the statement is required by a State or local regulatory body (including a plant site licensing board) to file a capacity criteria statement with that body, the system reserve capacity criteria in the statement filed with the Commission shall be identical to those contained in the statement filed with the State or local regulatory body. Any utility that changes its reserve capacity criteria shall, within 45 days of such change, file an amended fuel cost and purchased economic power adjustment clause to incorporate the new criteria.
(ii) Reserve capacity shall be deemed adequate if, at the time a purchase was initiated, the buyer's system reserve capacity criteria were projected to be satisfied for the duration of the purchase without the purchase at issue.
(iii) The total cost of the purchase must be projected to be less than total avoided variable cost, at the time a purchase was initiated, before any non-fuel purchase charge may be included in F m.
(iv) The purchasing utility shall make a credit to F m after a purchase terminates if the total cost of the purchase exceeds the total avoided variable cost. The amount of the credit shall be the difference between the total cost of the purchase and the total avoided variable cost. This credit shall be made in the first adjustment period after the end of the purchase. If a utility fails to make the credit in the first adjustment period after the end of the purchase, it shall, when making the credit, also include in F m interest on the amount of the credit. Interest shall be calculated at the rate required by § 35.19a(a)(2)(iii) of this chapter, and shall accrue from the date the credit should have been made under this paragraph until the date the credit is made.
(v) If a purchase is made of more capacity than is needed to satisfy the buyer's system reserve capacity criteria because the total costs of the extra capacity and associated energy are less than the buyer's total avoided variable costs for the duration of the purchase, the charges associated with the non-reliability portion of the purchase may be included in F.
(Approved by the Office of Management and Budget under control number 1902-0096)
(Federal Power Act, 16 U.S.C. 824d, 824e and 825h (1976 & Supp. IV 1980); Department of Energy Organization Act, 42 U.S.C. 7171, 7172 and 7173(c) (Supp. IV 1980); E.O. 12009, 3 CFR part 142 (1978); 5 U.S.C. 553 (1976))
[Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 421, 36 FR 3047, Feb. 17, 1971; 39 FR 40583, Nov. 19, 1974; Order 225, 47 FR 19056, May 3, 1982; Order 352, 48 FR 55436, Dec. 13, 1983; 49 FR 5073, Feb. 10, 1984; Order 529, 55 FR 47321, Nov. 13, 1990; Order 600, 63 FR 53809, Oct. 7, 1998; Order 714, 73 FR 57532, Oct. 3, 2008; 73 FR 63886, Oct. 28, 2008]

Title 18 published on 2013-04-01

The following are only the Rules published in the Federal Register after the published date of Title 18.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-04-04; vol. 79 # 65 - Friday, April 4, 2014
    1. 79 FR 18775 - Order Updating Electric Quarterly Report Data Dictionary
      GPO FDSys XML | Text
      DEPARTMENT OF ENERGY, Federal Energy Regulatory Commission
      Order Updating Electric Quarterly Report (EQR) Data Dictionary; Correction.
      Effective April 4, 2014.
      18 CFR Part 35

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 16 - CONSERVATION

§ 791 - Repealed. Aug. 26, 1935, ch. 687, title II,

§ 791a - Short title

§ 792 - Federal Power Commission; creation; number; appointment; term; qualifications; vacancies; quorum; chairman; salary; place of holding sessions

§ 793 - Appointment of officers and employees of Commission; duties, and salaries; detail of officers and employees from other departments; expenditures authorized

§ 793a - Repealed.

§ 794, 795 - Omitted

§ 796 - Definitions

§ 797 - General powers of Commission

§ 797a - Congressional authorization for permits, licenses, leases, or authorizations for dams, conduits, reservoirs, etc., within national parks or monuments

§ 797b - Duty to keep Congress fully and currently informed

§ 797c - Dams in National Park System units

§ 797d - Third party contracting by FERC

§ 798 - Purpose and scope of preliminary permits; transfer and cancellation

§ 799 - License; duration, conditions, revocation, alteration, or surrender

§ 800 - Issuance of preliminary permits or licenses

§ 801 - Transfer of license; obligations of transferee

§ 802 - Information to accompany application for license; landowner notification

§ 803 - Conditions of license generally

§ 804 - Project works affecting navigable waters; requirements insertable in license

§ 805 - Participation by Government in costs of locks, etc.

§ 806 - Time limit for construction of project works; extension of time; termination or revocation of licenses for delay

§ 807 - Right of Government to take over project works

§ 808 - New licenses and renewals

§ 809 - Temporary use by Government of project works for national safety; compensation for use

§ 810 - Disposition of charges arising from licenses

§ 811 - Operation of navigation facilities; rules and regulations; penalties

§ 812 - Public-service licensee; regulations by State or by commission as to service, rates, charges, etc.

§ 813 - Power entering into interstate commerce; regulation of rates, charges, etc.

§ 814 - Exercise by licensee of power of eminent domain

§ 815 - Contract to furnish power extending beyond period of license; obligations of new licensee

§ 816 - Preservation of rights vested prior to June 10, 1920

§ 817 - Projects not affecting navigable waters; necessity for Federal license, permit or right-of-way; unauthorized activities

§ 818 - Public lands included in project; reservation of lands from entry

§ 819 - Repealed. Aug. 26, 1935, ch. 687, title II,

§ 820 - Proceedings for revocation of license or to prevent violations of license

§ 821 - State laws and water rights unaffected

§ 822 - Reservation of right to alter or repeal chapter

§ 823 - Repeal of inconsistent laws

§ 823a - Conduit hydroelectric facilities

§ 823b - Enforcement

§ 823c - Alaska State jurisdiction over small hydroelectric projects

§ 823d - Alternative conditions and prescriptions

§ 824 - Declaration of policy; application of subchapter

§ 824a - Interconnection and coordination of facilities; emergencies; transmission to foreign countries

16 U.S. Code § 794, 795 - Omitted

16 U.S. Code § 794, 795 - Omitted

16 U.S. Code § 794, 795 - Omitted

16 U.S. Code § 794, 795 - Omitted

§ 824b - Disposition of property; consolidations; purchase of securities

§ 824c - Issuance of securities; assumption of liabilities

§ 824d - Rates and charges; schedules; suspension of new rates; automatic adjustment clauses

§ 824e - Power of Commission to fix rates and charges; determination of cost of production or transmission

§ 824f - Ordering furnishing of adequate service

§ 824g - Ascertainment of cost of property and depreciation

§ 824h - References to State boards by Commission

§ 824i - Interconnection authority

§ 824j - Wheeling authority

16 U.S. Code § 794, 795 - Omitted

§ 824k - Orders requiring interconnection or wheeling

16 U.S. Code § -

§ 824m - Sales by exempt wholesale generators

§ 824n - Repealed.

16 U.S. Code § -

§ 824p - Siting of interstate electric transmission facilities

§ 824q - Native load service obligation

§ 824r - Protection of transmission contracts in the Pacific Northwest

§ 824s - Transmission infrastructure investment

§ 824t - Electricity market transparency rules

§ 824u - Prohibition on filing false information

§ 824v - Prohibition of energy market manipulation

§ 824w - Joint boards on economic dispatch

§ 825 - Accounts and records

§ 825a - Rates of depreciation; notice to State authorities before fixing

§ 825b - Requirements applicable to agencies of United States

§ 825c - Periodic and special reports; obstructing filing reports or keeping accounts, etc.

§ 825d - Officials dealing in securities

§ 825e - Complaints

§ 825f - Investigations by Commission

§ 825g - Hearings; rules of procedure

§ 825h - Administrative powers of Commission; rules, regulations, and orders

§ 825i - Appointment of officers and employees; compensation

§ 825j - Investigations relating to electric energy; reports to Congress

§ 825k - Publication and sale of reports

16 U.S. Code § -

§ 825m - Enforcement provisions

§ 825n - Forfeiture for violations; recovery; applicability

16 U.S. Code § -

16 U.S. Code § 794, 795 - Omitted

§ 825p - Jurisdiction of offenses; enforcement of liabilities and duties

§ 825q - Repealed.

16 U.S. Code § 794, 795 - Omitted

§ 825r - Separability

§ 2601 - Findings

§ 2602 - Definitions

§ 2603 - Relationship to antitrust laws

§ 2611 - Purposes

§ 2612 - Coverage

§ 2613 - Federal contracts

§ 2621 - Consideration and determination respecting certain ratemaking standards

§ 2622 - Obligations to consider and determine

§ 2623 - Adoption of certain standards

§ 2624 - Lifeline rates

§ 2625 - Special rules for standards

§ 2626 - Reports respecting standards

§ 2627 - Relationship to State law

§ 2631 - Intervention in proceedings

§ 2632 - Consumer representation

§ 2633 - Judicial review and enforcement

§ 2634 - Prior and pending proceedings

§ 2641 - Voluntary guidelines

§ 2642 - Responsibilities of Secretary

§ 2643 - Gathering information on costs of service

§ 2644 - Relationship to other authority

§ 2645 - Utility regulatory institute

U.S. Code: Title 31 - MONEY AND FINANCE
U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE

§ 7101 - Definitions

§ 7111 - Congressional findings

§ 7112 - Congressional declaration of purpose

§ 7113 - Relationship with States

§ 7131 - Establishment

§ 7132 - Principal officers

§ 7133 - Assistant Secretaries; appointment and confirmation; identification of responsibilities

§ 7134 - Federal Energy Regulatory Commission; compensation of Chairman and members

§ 7135 - Energy Information Administration

§ 7135a - Delegation by Secretary of Energy of energy research, etc., functions to Administrator of Energy Information...Administration; prohibition against required delegation; utilization of capabilities by Secretary

§ 7136 - Economic Regulatory Administration; appointment of Administrator; compensation; qualifications; functions

§ 7137 - Functions of Comptroller General

§ 7138 - Repealed.

§ 7139 - Office of Science; establishment; appointment of Director; compensation; duties

§ 7140 - Leasing Liaison Committee; establishment; composition

§ 7141 - Office of Minority Economic Impact

§ 7142 - National Atomic Museum and National Atomic Testing Museum

§ 7142a - Designation of American Museum of Science and Energy

§ 7142b - Authority

§ 7142c - Museum volunteers

§ 7142d - Definitions

§ 7143 - Repealed.

§ 7144 - Establishment of policy for National Nuclear Security Administration

§ 7144a - Establishment of security, counterintelligence, and intelligence policies

§ 7144b - Office of Counterintelligence

§ 7144c - Office of Intelligence

§ 7144d - Office of Arctic Energy

§ 7144e - Office of Indian Energy Policy and Programs

§ 7151 - General transfers

§ 7151a - Jurisdiction over matters transferred from Energy Research and Development Administration

§ 7152 - Transfers from Department of the Interior

§ 7153 - Administration of leasing transfers

§ 7154 - Transfers from Department of Housing and Urban Development

§ 7155 - Repealed.

§ 7156 - Transfers from Department of the Navy

§ 7156a - Repealed.

§ 7157 - Transfers from Department of Commerce

§ 7158 - Naval reactor and military application programs

§ 7159 - Transfer to Department of Transportation

§ 7171 - Appointment and administration

§ 7172 - Jurisdiction of Commission

§ 7173 - Initiation of rulemaking procedures before Commission

§ 7174 - Referral of other rulemaking proceedings to Commission

§ 7175 - Right of Secretary to intervene in Commission proceedings

§ 7176 - Reorganization

§ 7177 - Access to information

§ 7178 - Federal Energy Regulatory Commission fees and annual charges

§ 7191 - Procedures for issuance of rules, regulations, or orders

§ 7192 - Judicial review

§ 7193 - Remedial orders

§ 7194 - Requests for adjustments

§ 7195 - Report to Congress; contents

§ 7211, 7212 - Repealed.

§ 7213 to 7217 - Repealed.

§ 7218 - Repealed.

§ 7231 - Officers and employees

§ 7232 - Senior positions

§ 7233 - Experts and consultants

§ 7234 - Advisory committees

§ 7235 - Armed services personnel

§ 7236 - Transferred

§ 7237 - Priority placement, job placement, retraining, and counseling programs for United States Department of Energy employees affected by reduction in force

§ 7238 - Temporary appointments for scientific and technical experts in Department of Energy research and development programs

§ 7239 - Transferred

§ 7251 - General authority

§ 7252 - Delegation

§ 7253 - Reorganization

§ 7254 - Rules and regulations

§ 7255 - Subpoena

§ 7256 - Contracts, leases, etc., with public agencies and private organizations and persons

§ 7256a, 7256b - Transferred

§ 7257 - Acquisition, construction, etc., of laboratories, research and testing sites, etc.

§ 7257a to 7257c - Transferred

§ 7257d - Expanded research by Secretary of Energy

§ 7258 - Facilities construction

§ 7259 - Use of facilities

§ 7259a - Activities of Department of Energy facilities

§ 7260 - Field offices

§ 7261 - Acquisition of copyrights, patents, etc.

§ 7261a - Protection of sensitive technical information

§ 7261b - Technology transfer to small businesses

§ 7261c - Technology partnerships ombudsman

§ 7262 - Repealed.

§ 7263 - Capital fund

§ 7264 - Seal of Department

§ 7265 - Regional Energy Advisory Boards

§ 7266 - Designation of conservation officers

§ 7267 - Annual report

§ 7268 - Leasing report

§ 7269 - Transfer of funds

§ 7269a - Repealed.

§ 7269b - Transfer of unexpended appropriation balances

§ 7269c - Funding for Department of Energy activities not included in Fossil Energy account

§ 7270 - Authorization of appropriations

§ 7270a - Guards for Strategic Petroleum Reserve facilities

§ 7270b - Trespass on Strategic Petroleum Reserve facilities

§ 7270c - Annual assessment and report on vulnerability of facilities to terrorist attack

§ 7271 - Transferred

§ 7271a - Repealed.

§ 7271b - Repealed.

§ 7271c - Repealed.

§ 7271d to 7273a - Transferred

§ 7273b - Security investigations

§ 7273c - Transferred

§ 7274 - Environmental impact statements relating to defense facilities of Department of Energy

§ 7274a to 7274d - Transferred

§ 7274e - Scholarship and fellowship program for environmental restoration and waste management

§ 7274f - Transferred

§ 7274g - Environmental restoration and waste management five-year plan and budget reports

§ 7274h, 7274i - Transferred

§ 7274j - Repealed.

§ 7274k - Transferred

42 U.S. Code § -

42 U.S. Code § -

§ 7274p - Transferred

§ 7274q - Transferred

§ 7274r - Transferred

§ 7274s - Transferred

§ 7275 - Definitions

§ 7276 - Regulations to require integrated resource planning

§ 7276a - Technical assistance

§ 7276b - Integrated resource plans

§ 7276c - Miscellaneous provisions

§ 7276d - Property protection program for power marketing administrations

§ 7276e - Provision of rewards

§ 7276f - Western Area Power Administration; deposit and availability of discretionary offsetting collections

§ 7276g - Western Area Power Administration; deposit and availability of funds related to Falcon and Amistad Dams

§ 7277 - Report concerning review of United States coal imports

§ 7278 - Availability of appropriations for Department of Energy for transportation, uniforms, security, and price support and loan guarantee programs; transfer of funds; acceptance of contributions

§ 7279 - Identification in budget materials of amounts for certain Department of Energy pension obligations

§ 7279a - Future-years energy program annual submission and budgeting

§ 7291 - Transfer and allocations of appropriations and personnel

§ 7292 - Effect on personnel

§ 7293 - Agency terminations

§ 7294 - Incidental transfers

§ 7295 - Savings provisions

§ 7296 - Separability

§ 7297 - Cross references

§ 7298 - Presidential authority

§ 7299 - Transition

§ 7300 - Report to Congress; effect on personnel

§ 7301 - Environmental impact statements

§ 7321 - National Energy Policy Plan

§ 7322 - Congressional review

§ 7341 - Effective date

§ 7342 - Interim appointments

§ 7351 - Submission of comprehensive review

§ 7352 - Contents of review

Title 18 published on 2013-04-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 18 CFR 35 after this date.

  • 2014-04-04; vol. 79 # 65 - Friday, April 4, 2014
    1. 79 FR 18775 - Order Updating Electric Quarterly Report Data Dictionary
      GPO FDSys XML | Text
      DEPARTMENT OF ENERGY, Federal Energy Regulatory Commission
      Order Updating Electric Quarterly Report (EQR) Data Dictionary; Correction.
      Effective April 4, 2014.
      18 CFR Part 35