3 AAC 52.502. Criteria for adjustment clauses

(a) Cost elements included in an adjustment clause must be

(1) subject to change at a rate that would cause financial harm to the utility if the costs were recovered exclusively in base rates;

(2) beyond the control of the utility; and

(3) easily verifiable.

(b) The commission will review cost elements included in a utility's adjustment clause in each general rate case. A utility may not include a cost element in its adjustment clause unless the commission has previously approved that cost element in a general rate case or in a separate tariff filing in accordance with 3 AAC 52.504(c) or 3 AAC 52.506(c) .

(c) Notwithstanding (b) of this section, a utility with an approved adjustment clause on January 11, 2004 may, unless the commission orders otherwise, continue to use its approved methodology and include all approved cost elements in its filings until its next general rate case.

History: Eff. 1/11/2004, Register 169

Authority: AS 42.05.141

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