69-3-331. Cost tracking and recovery. (1) If the commission approves a cost-tracking adjustment for electricity supply costs for a public utility regulated in accordance with chapter 8 or under this chapter, the cost-tracking adjustment must provide for:

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

(a)90% customer and 10% shareholder sharing of costs, if cost sharing is required; and

(b)full recovery of costs incurred by a public utility as a result of qualifying small power production facility purchase requirements established in Title 69, chapter 3, part 6.

(2)A cost-tracking adjustment may not include a deadband.

(3)For the purposes of this section, “deadband” means a level of cost recovery variance, including levels of underrecoveries and overrecoveries to be borne by the public utility.