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Arkansas Approves Fuel Clause Treatment for Test Energy

Fortnightly Magazine - August 1995

According to the Arkansas Public Service Commission (PSC), the Arkansas Electric Cooperative Corp treated ratepayers fairly when it used its fuel adjustment clause to recover the value of test energy produced at one of its hydroelectric facilities. The PSC rejected a claim by its staff that the recovery was misplaced because no fuel costs were actually incurred for generating the test energy. The PSC said the co-op deserved a credit for the value of the energy because the value of the hydroelectric plant would be reduced by the same amount under the approved accounting treatment. Re Arkansas Electric Cooperative Corp., Docket No.

95-152-U, Order No. 2, May 6, 1995 (Ark.P.S.C.).

 

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