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Exhibit No.: Issues: Witness: Type of Exhibit: Sponsoring Party: Case No.: Date Testimony Prepared:Transmission Costs and FAC James R. Dauphins Rebuttal Testimony Missouri Industrial Energy Consumers
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Transmission costs refer to the expenses incurred for transporting electricity over transmission lines from the generation point to the distribution networks. FAC stands for Fuel Adjustment Clause, which reflects the changes in fuel costs that affect the cost of electricity supplied.
Utilities and electric suppliers that provide service to customers are typically required to file transmission costs and FAC.
To fill out transmission costs and FAC, utilities must collect data on transmission expenses and fuel costs, complete the designated forms provided by regulatory bodies, and submit these along with necessary supporting documentation.
The purpose of transmission costs and FAC is to ensure that electricity prices reflect actual costs of transmission and fuel. It helps to recover appropriate expenses and maintain fair pricing for consumers.
Utilities must report detailed costs associated with electricity transmission, including fixed and variable costs, and the fuel costs used during the reporting period. They may also need to provide supporting data on the calculation methods used.
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