Haw. Code R. § 6-60-6 - Automatic adjustment clauses

The utility's rate schedules may include automatic rate adjustment clauses, only for those clauses previously approved by the commission. Upon effective date of this Chapter, any fuel adjustment clause submitted for commission approval shall comply with the following standards:

(1) "Fuel adjustment clause" means a provision of a rate schedule which provides for increases or decreases or both, without prior hearing, in rates reflecting increases or decreases or both in costs incurred by an electric or gas utility for fuel and purchased energy due to changes in the unit cost of fuel and purchased energy.

(2) No changes in fuel and purchased energy costs may be included in the fuel adjustment clause unless the contracts or prices for the purchase of such fuel or energy have been previously approved or filed with the commission.

(3) The fuel adjustment clause shall cover only increases or decreases in the unit cost of fuel and purchased energy adjusted for the resulting changes in revenue taxes, from those found reasonable in the last rate case proceeding for the utility; where such unit cost were included in the base rate for each schedule.

(4) The adjustment shall be effective on the date of change and when a cost change occurs during a customer's billing period, the fuel adjustment shall be prorated for the number of days each cost was in effect.

(5) The utility shall notify the Commission and the Consumer Advocate within five days after notification of an increase or decrease in cost by the fuel supplier. Prior to the effective date of each change in the fuel adjustment, the utility shall make a filing with the Commission and the Consumer Advocate, Department of Regulatory Agencies, showing the calculation of such change in the fuel adjustment clause and shall submit other supporting data as the Commission or the Consumer Advocate may require. The filing shall include:

(A) The base rate as determined in the last rate proceeding for the subject utility, the previous fuel adjustment cost applied to all bills, and the present cost adjustment presented in a manner to indicate the difference between the base rate and the present adjustment and the difference between the previous fuel adjustment and the present change;

(B) Changes in the composite cost to the utility for fuel delivered to its service tanks, as measured by increases or decreases in the unit cost of fuel or purchased energy, adjusted for the resulting changes in revenue taxes;

(C) Differences between the forecast mix of fuel and purchased energy and the recorded mix;

Notes

Haw. Code R. § 6-60-6

[Eff. 6-19-81 ] (Auth: HRS 269-6) (Imp: HRS 269-16)