521 RATE CASE SCRUTINY

521.1 The company shall justify the continued use of its fuel adjustment clause in each rate filing. The burden of proof shall rest on the company to show the following:

1. (a) That fuel costs are being optimized;
2. (b) That generating facilities are operating at reasonable efficiency;
3. (c) That fuel price and interchange cost volatility continues to be a factor supporting the continued need for a fuel adjustment clause; and
4. (d) That removal of the fuel adjustment clause would adversely impact on the company's profitability and as a result lead to higher electric rates.

521.2 As a result of evidence gathered in an investigation, the Commission may order the company to modify or withdraw its fuel adjustment clause or decide to leave the existing clause unaltered. The Commission shall, in its discretion, undertake evidentiary investigations more frequently than in every rate proceeding.

SOURCE: Final Rulemaking published at 29 DCR 5130, 5139 (November 19, 1982).