KRS 278.277: Fuel adjustment cost recovery extension -- Any coal severance taxes

imposed a factor in any fuel adjustment clause review.

(1) In the administration of an electric utility's fuel adjustment clause and any

associated tariffs, the commission ma y, upon the request of an electric utility,

extend the period for recovery of fuel adjustment costs that are typically

recoverable in order to reduce volatility for consumers and encourage stability in

rates.

(2) In any review by the commission of any fuel adjustment clause, for any contracts

entered into on or after July 1, 2021, the commission shall, in determining the

reasonableness of fuel costs in procurement contracts and fuel procurement

practices, evaluate the reasonableness of fuel costs in contrac ts and competing bids

based on the cost of the fuel less any coal severance tax imposed by any

jurisdiction.

(3) As used in this section, "fuel adjustment clause" means any clause or provision in

any tariff or contract by which an electric utility may immediately recover increases

in fuel costs subject to later scrutiny or review by the commission.