278.277 Any coal severance taxes imposed a factor in any fuel adjustment clause
108 words·~1 min read·
/ky/278-277A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
review.
(1)In any review by the commission of any fuel adjustment clause, for any contracts
entered into on or after July 1, 2021, the commission shall, in determining the
reasonableness of fuel costs in procurement contracts and fuel procurement
practices, evaluate the reasonableness of fuel costs in contracts and competing bids
based on the cost of the fuel less any coal severance tax imposed by any
jurisdiction.
(2)As used in this section, "fuel adjustment clause" means any clause or provision in
any tariff or contract by which an electric utility may immediately recover increases
in fuel costs subject to later scrutiny or review by the commission.