| (ii) All other inputs into the calculation of the fuel
factors will be the same as those used to calculate the fuel factor
in subparagraphs (B) and (C) of this paragraph.
(iii) Except for affiliated electric utilities whose
base rates were reduced by more than 12% as the result of a final
order issued by the commission after October 1, 1998, the fuel factor(s)
to be used at the beginning of the price to beat period shall be the
fuel factor in effect on January 1, 1999, reduced by 6.0%, plus the
difference between the fuel factor(s) established pursuant to this
subparagraph and the fuel factor in effect on January 1, 1999.
(iv) The fuel factor(s) for affiliate electric utilities
whose base rates were reduced by more than 12% as the result of a
final order issued by the commission after October 1, 1998, to be
used at the beginning of the price to beat period shall be the fuel
factor(s) established pursuant to this subparagraph.
(E) For a non-generating investor-owned utility with
no fuel factor as of January 1, 1999, its PCRF in effect on January
1, 1999, shall be the equivalent to a fuel factor for purposes of
calculating its price to beat rates and future fuel cost adjustments
under subsection (g) of this section. Upon expiration of a purchased
power contract of an affiliated REP unbundled from such a utility,
the affiliated REP may request a change in its PCRF to account for
any difference in purchased power costs.
(g) Adjustments to the price to beat.
(1) Fuel factor adjustments. An affiliated REP may
request that the commission adjust the fuel factor(s) established
under subsection (f)(3) of this section upward or downward not more
than twice in a calendar year if the affiliated REP demonstrates that
the existing fuel factor(s) do not adequately reflect significant
changes in the market price of natural gas and purchased energy used
to serve retail customers. As part of a filing made pursuant to this
paragraph, an affiliated REP may also request an adjustment to the
seasonality imparted to the fuel factor in accordance with subsection
(f)(3)(C) of this section. Alternatively, the commission may, as part
of its approval of an adjustment to the fuel factor, impose a change
in the seasonality imparted to the fuel factor. The methodology for
calculating the adjustment to the fuel factor(s) shall be the following:
(A) For each day of the 20 trading-day period ending
no later than two days before the filing of a fuel factor adjustment
application, an average of the closing forward 12-month NYMEX Henry
Hub natural gas prices, as reported by the Wall
Street Journal (either in print or on-line), is calculated.
(B) The average forward price for each trading day
calculated in subparagraph (A) of this paragraph will then be averaged
to determine a 20 trading-day rolling price.
(C) The percentage difference between the averaged
20 trading-day rolling price calculated under subparagraphs (A) and
(B) of this paragraph and the averaged price used to calculate the
current fuel factor(s) is calculated. If the current fuel factor was
calculated through an adjustment under subparagraph (E) of this paragraph,
then the averaged 20 trading-day rolling price calculated concurrent
with that adjustment shall be used. If the percentage difference is
5.0% or more, then the current fuel factor(s) may be adjusted, unless
the filing is made after November 15 of a calendar year, in which
event the percentage difference must be 10% or more.
(D) If the absolute value of the percentage difference
calculated in subparagraph (C) of this paragraph meets or exceeds
5.0% (or 10% if applicable), then the current fuel factors are deemed
to be unreflective of significant changes in the market price of natural
gas and purchased energy. To adjust the current fuel factor(s), the
percentage difference calculated in subparagraph (C), either positive
or negative, is added to one and then multiplied by the current factor(s).
The results are the adjusted fuel factor(s) that will be implemented
according to the procedural schedule in clause (i) and (ii) of this
subparagraph:
(i) if no hearing is requested within 15 days after
the petition has been filed, a final order shall be issued within
20 days, or as soon as practicable thereafter, after the petition
is filed;
(ii) if a hearing is requested within 15 days after
the petition is filed, a final order shall be issued within 45 days,
or as soon as practicable thereafter, after the petition is filed.
The 45 day timeline for issuance of an order may be extended upon
mutual agreement of the parties. Such agreement may provide for interim
rate relief.
(E) In addition to the adjustment permitted under subparagraphs
(A)-(D) of this paragraph, an affiliated REP may also request an adjustment
to the fuel factor if the headroom under the price to beat decreases
as a result of significant changes in the price of purchased energy.
In making a request under this subparagraph:
(i) an affiliated REP shall demonstrate that:
(I) the representative power price has changed such
that the headroom under the price to beat has decreased; and
(II) the adjustment to the fuel factor is necessary
to restore the amount of headroom that existed at the time that the
initial price to beat fuel factor was set by the commission using
then current forecasts of the representative power price.
(III) an affiliated REP making an adjustment under
this subparagraph shall also file the gas price calculation in subparagraphs
(A) and (B) of this paragraph for purposes of subsequent adjustments
to the fuel factor based on changes in natural gas prices.
(ii) the commission will issue a final order on an
application filed under this subparagraph within 60 days, or as soon
as practicable thereafter, after the application is filed. The 60
day timeline for issuance of an order may be extended upon mutual
agreement of the parties. Such agreement may provide for interim rate
relief.
(F) The commission shall, upon a showing made by an
interested party, that a sufficiently liquid electricity commodity
trading hub (or hubs) or index has developed for the affiliated REP's
relevant geographic or power region, allow an affiliated REP to transition
to the use of electricity commodity futures prices at that hub or
index to adjust the fuel factor to adequately reflect significant
changes in the price of purchased energy. After the commission has
made a finding that a sufficiently liquid electricity commodity trading
hub or index has developed, the affiliated REP shall be required to
perform an additional adjustment under subparagraphs (A) through (D)
or (E) of this paragraph before utilization of the futures prices
at that trading hub or index to change the fuel factor so that a benchmark
electricity price can be established. Subsequent changes to the fuel
factor shall be based on the percentage change in the electricity
commodity index using the same methodology for the natural gas price
adjustment under subparagraphs (A) - (D) of this paragraph.
(2) Adjustment for financial integrity. Upon a finding
that an affiliated REP will be unable to maintain its financial integrity
if it complies with subsection (f) of this section, the commission
shall set the affiliated REP's price to beat at the minimum level
that will allow the affiliated REP to maintain its financial integrity.
However, in no event shall the price to beat exceed the level of rates,
on a bundled basis, charged by the affiliated electric utility on
September 1, 1999, adjusted for fuel.
(3) True-up adjustment. The commission shall adjust
the price to beat following the true-up proceedings under PURA §39.262.
The commission shall consider the following adjustments to the price
to beat on a schedule consistent with the processing of the TDU rate
adjustment application pursuant to §25.263(n) of this title (relating
to True-up Proceeding):
(A) Fuel factor adjustment. A 20 trading-day rolling
price shall be calculated in accordance with paragraph (1)(A)-(D)
of this subsection. If the 20 trading-day rolling price is less than
the price used to calculate the then-current fuel factor (i.e. The
percentage difference is negative), then the price to beat fuel factor
shall be adjusted downward by the percentage difference in the prices.
An adjustment required to be made in accordance with this subparagraph
shall not be considered a request by an affiliated REP under paragraph
(1) of this subsection.
(B) Base rate adjustment. Using the typical residential
and small commercial usage calculations described in subsection (c)(3)
of this section, the base rate components of the price to beat shall
be adjusted, either upward or downward, such that the difference between
the average price to beat base rate and the average non-bypassable
charges that exist following the proceeding pursuant to §25.263(n)
of this title is the same as existed on January 1, 2002. Each component
of the base rates for each residential price to beat base rate tariff
shall be adjusted in the same proportion in complying with this section.
Each component of the base rates for each small commercial price to
beat base rate tariff shall be adjusted in the same proportion in
complying with this section
Cont'd... |
