39 Miss. Code. R. 1-17-101

Current through December 10, 2024

Section 39-1-17-101 - Allowable Cost

The cost of fuel allowable for inclusion in a fuel adjustment clause or rider shall be the prudent cost of fossil and nuclear fuel consumed in the utility's own plants and the utility's share of fossil and nuclear fuel consumed in jointly owned or leased plants.

1. Non-Nuclear Fuel

a. Fossil FuelDirect Costs

The allowable direct cost of fossil fuel other than nuclear fuel shall include those items which are properly includable in FERC account 151, 501 and 547 including the following:

i Invoice price of fuel less any cash or other discounts.

ii Freight, switching, demurrage and other transportation charges, not including, however, any charges for unloading from the shipping medium.

iii Excise taxes, purchasing agent's Ccommission, insurance and other expenses directly assignable to cost of fuel.

iv Operating, maintenance and depreciation expenses and ad valorem taxes on utility-owned transportation equipment used to transport fuel from the point of acquisition to the unloading point.

v Lease or rental costs of transportation equipment used to transport fuel from the point of acquisition to the unloading point.

b. Fuel Handling Costs

In addition theretoto the direct costs properly includable in FERC account 151, fuel cost may include direct costs associated with burning the fuel at the generating plant such as fuel handling expenses and the cost sampling and analysis. Fuel handling expenses may include the costs for unloading from the shipping medium, which are not permitted to be included in FERC account 151. Fuel handling costs include those items properly chargeable to FERC accounts 152, 501, and 547 except for the costs associated with hedging activities which are not allowed to be recovered through the fuel clause.

c. Emission Costs

The actual costs of SO₂ and NO_X emission allowances, required by Federal or State environmental regulations and consumed as a result of the generation of electricity by utility owned generation plants are includable for recovery through the fuel adjustment clause.

2. Nuclear Fuel

The allowable cost of nuclear fuel shall include those items properly includable in FERC account 518 including the following items:

a. The amortization of the net cost of nuclear fuel assemblies used in the production of energy. The net cost of nuclear fuel assemblies subject to amortization shall be the cost of nuclear fuel assemblies plus or less the expected net salvage of uranium, plutonium and other by-products and unburned fuel. The utility shall adopt the necessary procedures to assure that charges to this account are distributed according to the thermal energy produced in such periods.

b. The cost involved when fuel is leased.

c. The cost of other fuels, used for ancillary steam facilities, including super heat.

d. Fuel cost shall be debited or credited as appropriated for significant changes in the amounts estimated as the net salvage value of uranium, plutonium and other byproducts and the amount realized upon the final disposition of the materials. Significant declines in the estimated realizable value of such items may be recognized at the time of market price declines. When the declining change occurs while the fuel is recorded in the Nuclear Fuel Assemblies in Reactor Account, the effect shall be amortized over the remaining life of the fuel.

e. No expense for fossil fuel which has already been included in the cost of fossil fuel shall be included in the cost of nuclear fuel.

39 Miss. Code. R. 1-17-101