This was the decision and order of the Commonwealth Public Utilities Commission based on the stipulation and testimonies by CUC and the Georgetown Consulting Group.
CUC’s fluctuating fuel rate monthly is based on the price of oil. The current rate is $0.207, or two cents less than the proposed LEAC tariff.
Hearing examiner Harry M. Boertzel said CPUC has stipulated the following breakdown of the LEAC rate:
• $0.17502 per kwh element for fuel oil cost, generation lubricant cost, transportation and handling costs, taxes and other associated costs as billed by the fuel supplier.
• $0.01799 per kwh element to fund the purchase over an 18-month period of a 30-day fuel inventory and to provide for variations from projected fuel prices that result in unrecovered costs.
• $0.00615 per kwh element to fund CPUC invoices for regulatory fees and expenses and for the procurement or employment of financial and technical expertise to develop the information, analysis and reports reasonably necessary for continuing implementation of the LEAC tariff and CPUC directives.
• $0.03074 per kwh element to fund a reserve to support CPUC-approved power generation measures, which CUC can establish by petition.
The order stated that CUC will immediately begin building its fuel inventory to a prudent level of a 30-day supply.
CUC may petition CPUC for an expedited adjustment of the LEAC rate, supported by convincing actual or projected economic data
PCUC at the same time ordered CUC to provide a monthly information report which details the month-end fuel oil inventory balance at its power plant facilities.
The report will be filed with CPUC no latter than the 15th day of the following month.
CUC must also secure a line of credit at the earliest possible date to fund unanticipated swings in the price of fuel oil.
