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Definition of "fuel adjustment charge" |
A clause in the rate schedule that provides for adjustment of the amount of a bill as the cost of fuel varies from a specified base amount per unit. The specified base amount is determined when rates are approved. This item is shown on all consumer bills and indicates the current rate for any adjustment in the cost of fuel used by the utility. It can be a credit or a debit. The fuel adjustment lags usually lags one or two months behind the actual price of the fuel. For example, the cost of oil in January will be reflected in March's fuel adjustment. |
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