1988-12-12 Regular Meeting - Laserfiche WebLink

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i the systemwide4ltrate proceeding would fO. on a rate year, I which is defined as "the period in which the factor will be in effect." Given the breadth of South Texas Project issues to be addressed in the next HL&P general rate case, o.ne may reasonably assume that the relevant period of focus for fuel reconciliation purposes would be calendar year 1990. As recent history has shown, it has been extremely difficult to accurately project natural gas prices, even in the near term due to their VOlatility. Therefore, to base findings of fact in any fuel reconciliation proceeding on estimates of natural gas prices that will take effect from thirteen to twenty-five months from now would be highly speculative at best. All parties can offer much better gas price estimates if the period of review is limited to 1989 rather than 1990. Furthermore, HL&P in this ~roceeding is not requesting any change in 'the Company's present fixed fuel factors. Only a reconciliation of the fuel cost underrecovery balance through September 30, 1988 is sought. Thus, ratepayers will see no change of rates as a result of this proceeding if the Company's recommendation herein is adopted. If over the . next twelve months, circumstances indicate that the present fuel factor should be changed, either higher or lower, then certainly all parties would be free to make such a request in either the systemwide rate case or a separate proceeding. [Substantive Rul e 23. 23 (b) (2) (H) . ] GWS005SG - 5 -