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PR-08-116 -- PSC Approves Aquila Fuel Adjustment Clause Tariff
Contact: Kevin Kelly (573) 751-9300
FOR IMMEDIATE RELEASE -- FEBRUARY 15, 2008
PSC Approves Aquila Fuel Adjustment Clause Tariff
JEFFERSON CITY---The Missouri Public Service Commission has approved a tariff filed by Aquila, Inc. to adjust the fuel adjustment charge on the bills of its electric customers. The commission’s vote was 4-1. The charge, known as the fuel adjustment clause or FAC, currently appears as a separate item on the monthly electric bills of Aquila customers.
In a rate case decision in May 2007, the Public Service Commission granted Aquila’s request to implement a fuel adjustment clause in order to address fuel and purchase power cost volatility. Electric rates established in that rate case reflected a base level of fuel and purchased power costs. The fuel adjustment clause would reflect increases or decreases in those costs above or below the base level.
According to Aquila’s December 28, 2007 filing, costs exceeded base fuel costs by approximately $12.5 million in its MPS division and by approximately $3.3 million in its L&P division.
Under the tariff approved by the PSC, a customer using 1,000 kilowatts of power a month will see an FAC of approximately $2.00 a month in Aquila’s MPS division. For a customer using 1,000 kilowatts of power a month in Aquila’s L&P division, the FAC will be approximately $1.50 a month.
The tariff carries an effective date of March 1, 2008. As part of the FAC process, the PSC staff will conduct a prudence review of those costs included in the FAC.
Aquila, Inc. provides electric service to approximately 238,500 customers in its MPS division and approximately 65,700 electric customers in its L&P division.
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