This text of Louisiana § 45:1163.2 (Establishment of rates) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§1163.2. Establishment of rates
A.The industrial base of the state of Louisiana, upon which the economy of
the state is heavily dependent, is highly energy-intensive, and the rise in the cost of
electric power and competition from industries located outside the state where
electric service is offered at significantly lower rates threatens the continued viability
of those depressed energy-intensive industries in Louisiana. The legislature finds and
declares that it is essential to the continued growth and development of the state and
to the continued employment, prosperity, and welfare of the people of the state that
such depressed energy-intensive industries now located in the state be encouraged to
remain in operation in Louisiana. It is the purpose of this Section to encourage the
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§1163.2. Establishment of rates
A. The industrial base of the state of Louisiana, upon which the economy of
the state is heavily dependent, is highly energy-intensive, and the rise in the cost of
electric power and competition from industries located outside the state where
electric service is offered at significantly lower rates threatens the continued viability
of those depressed energy-intensive industries in Louisiana. The legislature finds and
declares that it is essential to the continued growth and development of the state and
to the continued employment, prosperity, and welfare of the people of the state that
such depressed energy-intensive industries now located in the state be encouraged to
remain in operation in Louisiana. It is the purpose of this Section to encourage the
retention of such industries, and the substantial number of jobs that they provide, by
requiring the establishment of a rate structure for the provision of electric service
that, together with other cost factors, may permit such industries in Louisiana to
remain competitive with comparable industries located outside of the state.
B.(1) The Public Service Commission shall require all electric public utilities
which provide or have provided service to a certified depressed energy-intensive
industry to prepare and file alternative rate tariffs for firm and off-peak electric
service to the depressed energy-intensive industry within thirty days of that
certification. Since the generating investment at the time these industries located in
the state was in gas and oil-fired generating facilities, the rate to be charged to
depressed energy-intensive industry shall be based solely upon oil and/or gas-fired
generation, and the monthly firm rate shall not exceed three dollars and fifty cents per
kilowatt, in addition to the fuel cost, and the monthly off-peak rate shall not exceed
one dollar and fifty cents per kilowatt, in addition to the fuel cost and both rates shall
be subject to approval of the commission.
(2) The fuel costs for firm service to depressed energy-intensive industries
shall be determined in a manner similar to that used in determining the average fuel
costs in the utility company's monthly fuel adjustment filings with the commission,
but shall be the actual fuel costs of its oil and gas-fired generation for delivery within
the state and any purchases of economy energy for its customers within the state. The
fuel cost for off-peak service shall be the actual fuel costs of its oil and gas-fired
generation for delivery within the state and any purchases of economy energy for its
customers within the state during such off-peak hours.
C. Electric service may be provided at such rate for an initial term of no more
than five years and may be renewed upon certification by the Board of Commerce
and Industry and with the consent of the governor for an additional five years.
D. An industry may qualify as a "depressed energy-intensive industry" if the
Board of Commerce and Industry, after hearing conducted pursuant to the
Administrative Procedure Act, certifies that the industry applying therefor meets each
of the following requirements:
(1) The applicant industry verifies that the expense of electricity and natural
gas utilized for facility power requirements and not for feedstock purposes to its
Louisiana facility exceeds thirty-three percent of the total cost of the product or
products manufactured at such facility.
(2) The applicant industry verifies that the amount of electricity or natural
gas consumed for facility power requirements and not for feedstock purposes at the
facility is in excess of one billion BTUs in a peak hour per month and that the ratio
of hourly peak demand is not in excess of three million BTUs per employee. For the
purposes of this Paragraph, one kilowatt hour of electrical energy is deemed
equivalent to ten thousand BTUs and one thousand cubic feet of gas is deemed
equivalent to one million BTUs.
(3) The applicant industry verifies that its Louisiana facility has been
substantially curtailed for a period of at least twelve months prior to June 1, 1984
resulting in the loss of direct employment at that single facility in excess of one
thousand regular employees and that qualifying as a depressed energy-intensive
industry for purchase of energy available to such qualifying industry would
substantially aid in the reopening of or the preclusion of closure of such facility.
(4) The accounting procedure for allocation of costs to the Louisiana facility
of the applicant is certified by the Board of Commerce and Industry, and the
applicant agrees that based upon that method of allocation, twenty-five percent of any
net profit after taxation realized by that Louisiana facility on an annual fiscal basis
subsequent to the receipt of energy available to certified depressed energy-intensive
industries will be utilized for and dedicated to capital improvements to the Louisiana
facility in question.
E. Louisiana Economic Development shall review the application of any
industry wishing to qualify as a depressed energy-intensive industry to determine
whether the requirements set forth above have been satisfied and shall make
recommendations with respect thereto to the Board of Commerce and Industry. If the
Board of Commerce and Industry concurs in the recommendation of Louisiana
Economic Development and has concluded pursuant to hearing that the applicant has
made the appropriate verifications required by Subsection D of this Section, the
board shall notify the mineral board and the Public Service Commission. Upon
certification to the Public Service Commission, the depressed energy-intensive
industry shall qualify for provision of electric service pursuant to the rate and
conditions set forth above.
F. The cost of fuel or purchased power for sale to depressed energy-intensive
industry not otherwise reimbursed or recouped pursuant to implementation of the rate
tariff set forth above may not be recovered from any other class of customer or from
any other rate payer of the electric public utility in question pursuant to its monthly
fuel adjustment clause filings with the Public Service Commission.