The Rhode Island Public Utilities Commission (PUC) intends to open a proceeding to consider the effect of fuel-adjustment clauses on utility incentives to reduce customer costs, finding that the passing through to customers of generating fuel costs may create a disincentive to supply-side efficiency.
The Energy Policy Act of 1992, amending section 111(d) of the Public Utility Regulatory Policies Act, requires states to consider electric utility investment in efficiency improvements at generation, transmission, and distribution facilities by October 24, 1995. In light of this deadline, the PUC said it will examine disincentives caused by existing ratemaking policies. The PUC plans to initiate a cooperative effort with Massachusetts and New Hampshire to consider cost-effective energy-efficiency improvements. Re Amendment to Section 111 of the Public Utility Regulatory Policies Act, Docket No. 2235, Sept. 26, 1994 (R.I. P.S.C.).
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