O-1976-1036 - Laserfiche WebLink

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HOUSTON LIGHTING & POWER COMPANY Rider FC FUEL COST ADJUSTMENT . Electric Service billed under all applicable rate schedules shall be subject to a Fuel Cost Adjustment for changes in fuel cost. Monthly billing shall be adjusted upward or downward by an amount per kwh to be calculated according to the following formula: Fuel Adjustment Factor (F AF) = f(F S CF) - .7386<: } (rounded to nearest ) l' 1 - T X LF .0001(: DEFINITIONS F = Fuel Costs estimated to be incurred by the Company for the current month and shall be composed of those costs as recorded in F.P.C. Accounts ~O1. 547 and 555 less the cost of fossil fuel recovered through intersystem sales. S = All kilowatthours estimated to be sold and recorded in the current month by the Company, excluding intersystem sales. e T = Estimated composite tax rate for gross receipts and other revenue related taxes and gross receipts payments for the Company expressed as decimal. CF = A Correction Fracto!' adjustment to be applied in the current month to provide for an allowance due to variance between actual and estimated fuel adjustment revenues derived from the Fuel Adjustment Factor for the third preceding month prior to the current month. The calculation of the Correction Factor is as follows-CF = [(A) - (B)J X (1 - T) where (A) is the actual fuel adjustment revenues received from the Fuel Adjust- ment Factor applied in the third preceding month and (B) is the fuel ad- justment revenues which would have been received from application of the Fuel Adjustment Factor in the third preceding month if actual rather than estimated fuel cost and kilowatthour sales (described above) had been available to calculate the Fuel Adjustment Factor for that month. LF = Loss factors to recognize differences in losses due to voltage levels of service. Such loss factors are as follows: Secondary Voltage Rate Schedules 1.03 Transmission Voltage Rate Schedules 0.96 Penalty Clause .. If at the end of December 31, 1976, and on an annual basis thereafter, the net sum of the Correction Factors for the previous 12 months exceeds 5% of the sum of "(B)" above for the same period, then a penalty equal in amount to 10% of such excess will be computed and this amount will be used to reduce the F'uel Adjustment Factor in the next succeeding March. This reduction will not otherwise affect such computation of the Fuel Adjustment Factor for sub- sequent periods. 5-76 EXHIBIT "D"