This office lease form describes an operating cost escalations provision.In the event that the operating costs for any calendar year during the term of this lease shall be greater than the base operating costs, the tenant will pay to the landlord additional rent of an amount equal to such an increase.
Kentucky Operating Cost Escalations Provision
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Multi-State
Control #:
US-OL19034A
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Word;
PDF
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FAQ
Kentucky Electric Fuel Cost Adjustments The Kentucky Public Service Commission approves the monthly change. Fuel Adjustment Clause ? represents the incremental rate above or below the Company's base fuel rate. Effective October 2021 base fuel rate is $0.025401 per kWh. Based on a typical monthly usage of 1,000 kWh.
The Kentucky Administrative Procedure Act is the law governing procedures for state administrative agencies to propose and issue regulations and provides for judicial review of agency adjudications and other final decisions in Kentucky.
A fuel adjustment clause (FAC) is a tariff provision which permits a change in rates to occur as a result of a change in the cost of fuel or a portion of purchased power expenses. These changes occur without the utility filing a formal rate case.
FREQUENTLY ASKED QUESTIONS. What is the Fuel Adjustment Clause? The Fuel Adjustment Clause (FAC) is a mechanism that permits jurisdictional utilities to regularly adjust the price of electricity to reflect fluctuations in the cost of fuel, or purchased power, used to supply that electricity.
Fuel Surcharge Adjustment means the mechanism to adjust fuel costs when market conditions cause fuel prices to go higher or lower than the benchmark fuel price established upon the start of the Contract.
The fuel adjustment clause (or FAC) recovers a portion of the cost of coal and natural gas that is needed to operate East Kentucky's power plants. When the cost of coal and natural gas increase month to month, as they have this year, the fuel adjustment also increases.