{"data":{"id":"us-ok/okla.-stat.-tit.-17-17-251","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 17, § 17-251","heading":"Change in price of fuels or power - Approval of fuel","body":"adjustment clauses - Rules for making determination.\n\nA. No fuel adjustment clause of any kind shall hereafter be\n\nauthorized by the Corporation Commission if such clause operates\n\nautomatically to permit charges, assessments or amendments to\n\nexisting rate schedules to be made which have not been first\n\napproved as provided by Sections 251 through 255 of this title,\n\nexcept as otherwise provided for purchased power adjustments by\n\nelectric distribution cooperatives in Sections 258 through 262 of\n\nthis title.\n\nB. If the Commission finds that the changes in the price of\n\nfuels required for the generation of electricity by any electric\n\npublic utility, that the changes in the price of purchased\n\nelectricity required for distribution by any public utility or\n\nchanges in the price of purchased gas required for distribution by\n\nany gas utility, portends a likely and substantial threat to the\n\nability of the utility to earn a reasonable rate of return, or are\n\nlikely to cause the utility to have an excessive rate of return, or\n\nare likely to substantially impair the ability of the utility to\n\nacquire adequate supplies of fuel or gas, the Commission may, after\n\ninvestigation and public hearing, approve suitable fuel adjustment\n\nclauses to be superimposed upon the existing rate schedules of the\n\npublic utility. The Commission shall design the fuel adjustment\n\nclause to allow the electric or gas public utility to increase or\n\ndecrease charges to the consumer according to changes in the cost of\n\nfuel, purchased power or purchased gas as compared to the price of\n\nsuch fuels or power as reflected in the base rates.\n\nC. In the Commission's design of fuel adjustment clauses, the\n\nfollowing rules shall apply:\n\n1. For the purpose of determining fuel or gas costs, the price\n\npaid for the fuel or gas shall be computed at the actual cost of\n\nfuel or gas purchased from nonaffiliated persons, firms and\n\ncorporations; and the actual cost of the production of fuel owned by\n\nthe public utility or received from affiliated persons, firms and\n\ncorporations, and in the case of gas, the fair field price for gas\n\nowned by the public utility or received from affiliated persons,\n\nfirms or corporations;\n\n2. The cost of fuel or gas shall be the price paid at the point\n\nof delivery into the utility system. In the event the\n\ntransportation is performed by an affiliated person, firm or\n\ncorporation as defined in this act which is not subject to the\n\nregulatory jurisdiction of the Commission, a regulatory agency of\n\nanother state having jurisdiction, or the Federal Energy Regulatory\n\nCommission or successor agency, the charges made for transportation\n\nshall be, if allowed at all, only such as the Commission finds fair,\n\njust and reasonable, for purposes of this section. Transportation\n\ncharges approved by this Commission, a regulatory agency of another\n\nstate having jurisdiction, or by the Federal Energy Regulatory\n\nCommission, or successor agency shall be included for purposes of\n\nthis section, if allowed by this Commission. The proposed\n\nadjustment charge shall not include the cost of transportation\n\nbeyond its point of delivery into that portion of the utility system\n\nregulated by the Corporation Commission unless there is presented to\n\nthe Commission and it is persuaded by reliable evidence which\n\nclearly points to the conclusion that failure to do so will\n\nsubstantially threaten the ability of the utility to earn a\n\nreasonable rate of return;\n\n3. The amount of electric energy produced by hydroelectric\n\ngenerating plants and purchased by the public utility proposing the\n\nadjustment charge shall be deducted from the amount of electric\n\nenergy to which any fuel cost applies;\n\n4. The actual efficiency or heat rate of electric public\n\nutilities shall be utilized and line losses shall be considered only\nle 17. Corporation Commission Page 186\n\n3. The amount of electric energy produced by hydroelectric\n\ngenerating plants and purchased by the public utility proposing the\n\nadjustment charge shall be deducted from the amount of electric\n\nenergy to which any fuel cost applies;\n\n4. The actual efficiency or heat rate of electric public\n\nutilities shall be utilized and line losses shall be considered only\n\nif reliable evidence clearly points to the conclusion that failure\n\nto do so will substantially threaten the ability of the utility to\n\nearn a reasonable rate of return;\n\n5. Fuel or gas removed from storage or stockpiles shall be\n\ntaken into consideration on the basis of the weighted average cost\n\nmethod of inventory accounting; and\n\n6. No estimated fuel adjustment shall be allowed.","path":["OK Code","Title 17"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os17.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"c60cc6df85ddebfd2e480330c88a70b83d8af79c3b46387b8bced3f61f75e36a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-17-17-250","next":"us-ok/okla.-stat.-tit.-17-17-252"},"notice":"GroundRules: Original legal text. Not legal advice."}