Archer-Daniels-Midland Co. v. Illinois Commerce Commission

Central Illinois Public Service Company (CIPS) and the Illinois Commerce Commission (Commission) appeal the decision of the appellate court (293 Ill. App. 3d 459) reversing the Illinois Commerce Commission’s order allowing the use of CIPS’s fuel adjustment clause (FAC) 1 to recover costs associated with a fuel contract modification. We now reverse the judgment of the appellate court and hold that the fuel contract modification costs and associated carrying costs, or interest costs, are recoverable through an FAC.

BACKGROUND

In 1975, CIPS entered into a long-term contract for the purchase of…