§ 1320 — Fuel purchase audits by complaint

(1) Upon complaint, the commission shall conduct an audit of an electric public utility's purchases of fuel for generating purposes. Such an audit shall examine the utility's fuel purchasing activities for the two years prior to the date of such complaint, provided that:

(i) The utility does its own testing or procures its own analysis of its fuel.

(ii) The fuel cost of the utility for the most recently completed fiscal year exceeds that of the prior fiscal year by more than 5%.

(iii) The commission has not completed and made available to the public a fuel purchase audit of the utility in the past two years.

(2) This audit, which shall be completed within one year of the date of initiation of the complaint, shall include, but not be limited to, a comparison of unit price paid for fuel for generating purposes, considering such factors as ash, sulfur content, British thermal units, transportation costs and reliability of supply.

(3) The audit shall seek to determine whether the public utility's fuel purchasing procedures are conducted in such a manner as to result in the greatest benefit to the ratepayers.

(4) The commission's audit report shall contain recommendations as to methods by which the utility's fuel purchasing procedures can be adjusted so as to result in the greatest benefit to the ratepayers.

(5) The commission shall take the audit report into consideration at the utility's next request for a rate adjustment.

(6) Upon completion and release by the commission, copies of the audit report summary shall be mailed to every person who requests a copy.

Legislative History

(July 10, 1986, P.L.1238, No.114, eff. imd.) 1986 Amendment.Act 114 added section 1320.