N.C. Sets Fuel Cost Proxy for Purchased Power
Resolving a new issue now arising under fuel cost adjustment clauses, the North Carolina Utilities Commission has ruled that electric utilities who buy wholesale power from marketers should treat 75 percent of the energy price component as a "fuel cost," in those instances where the seller cannot or will not provide actual fuel cost data.
The case involved Duke Power Co., which had purchased power from Enron for resale.