SB 733

Under current Public Service Commission administrative code, a public utility must file with PSC a proposed fuel cost plan for a 12-month period as part of an application to open or reopen a general rate case proceeding or as part of a proceeding limited in scope to fuel cost. Current PSC administrative code requires a public utility to calculate fuel cost as the net of the costs and credits during that period for items such as fuel, energy market purchases, energy market sales, renewable resource credits, and emission allowances. If PSC approves a fuel cost plan, it must establish the public utility’s rates in accordance with the approved plan.

Under current law, if an electric public utility has an approved fuel cost plan, PSC must defer any under-collection or over-collection of fuel costs that are outside of the utility’s symmetrical fuel cost annual tolerance for subsequent rate recovery or refund. This bill specifies that fuel costs must be calculated to account for the cost of purchasing and the revenue earned in selling electricity generation capacity that meets the requirements for capacity as established by the Midcontinent Independent System Operator.