Empire Electric here in Missouri has had their fuel adjustment clause running negative for six months straight. That used to mean customers got credits, but now they're calling it a "fuel cost under-recovery" and still charging us. The math doesn't add up - if their actual fuel costs are below the base rate assumption, shouldn't that be a customer credit? Has anyone else seen this kind of creative accounting with FAC calculations?
Empire Electric fuel adjustment - something weird happening
Elmer, that sounds like they're playing games with the true-up mechanism. Duke Energy tried something similar in the Carolinas but the regulators caught it quickly. A negative fuel adjustment should definitely result in customer credits unless there's some kind of cumulative under-recovery from previous periods. Did you check their quarterly FAC filings to see how they're calculating the balance?
Derek, I looked at their last three quarterly filings and the numbers are confusing. They seem to be carrying forward a balance from 2011 that keeps growing instead of being resolved. Maybe they're deferring the credits indefinitely? This needs more investigation but I don't have enough Empire customers to justify a deep dive. Might need to partner with other auditors in Missouri.