The 1978 Session of the General Assembly of Virginia has enacted legislation which requires each eletric utility which purchases fuel for the generation of eletricity to submit to the Commission its estimate of cost, including the fuel component of purchased power for a one-year period beginning January 1, 1979, along with proposed rates designed to recover the estimated fuel cost. It is the responsibility of the Commission to investigate the estimated fuel cost and proposed rate design and to assure that reasonable tariffs are implemented to recover fuel cost. It is further the responsibility of the Commission to provide for quarterly review during the coming year to investigate the actual recovery of cost under the electric utilities tariff provision so that any over-recovery or under-recovery of fuel cost can be corrected. The Commission is required to review all actual fuel cost and to disallow recovery of any fuel cost that are found to be unreasonable.
Potomac Electric Power Company comes under the provision of the new General Assembly Act. The Company has been instructed to file with the Commission on or before November 15, 1978, its estimated fuel cost, tariff revisions to recover such estimated fuel cost, and evidence in support of its proposals. On or after November 15, 1978, copies of the proposal may be reviewed in any business office where bills may be paid.
A public hearing has been scheduled on the Company's proposal commencing at 10 am, Decmeber 22, 1978 in the Commission's Courtroom, Richmond, Virginia. The initial purpose of this public hearing is to determine reasonable tariffs for the Company to implement on January 1, 1979. The purpose of these tariffs is not to change the revenue of the Company. If after review of these tariffs an interested party determines that it wishes to participate as a protestant in this proceeding, that is, to present evidence on behalf and to cross-examine witness and make arguments and file briefs, then they should file a notice of protest in accordance with the Commission's Rules of Practice and Procedure with William C. Young, Clerk of the State Corporation Commission, P.O. Box 1197, Richmond, Virginia 23209. Also a copy of the protest should be sent to Alan G. Kirk II, Esq., General Counsel Potomac Electric Power Company, 1900 Pennsylvania Ave., NW, Washington, D.C. 20068.
If, an interested party, does not wish to participate as a protestant but instead wishes to appear and make a statement in his or her own behalf, they need only appear at 9:45 a.m. on the day of the hearing at which time they will be given a notice of appearance form by the Bailiff. These interested parties will be given an opportunity to speak at 10:00 a.m. or soon as practicable thereafter. Persons intending to appear and speak in their own behalf should so notify the Commission by writing to the Clerk of the State Corporation Commission.
While, the purpose of the hearing on December 22, 1978 will be to determine rates to go into effect to recover fuel cost, in lieu of the present fuel adjustment clause of the Company, the hearing will be continued for further investigation to determine reasonable rules and procedures for monitoring estimated and actual fuel cost during the quarterly reviews that will occur in 1979 and the years thereafter, and such other rules and procedures as may be necessary to administer the provisions of the General Assembly Act.