Detroit Edison Co. v. Public Service Commission

(for affirmance). In our order granting leave to appeal, we stated as the first issue whether "the charge allowed by the fuel cost adjustment clause [is] a charge to recover past costs, or a charge based on past experience reflected in a current charge”. 1 The answer to this question is decisive in resolving all of the issues presented in this case.

The cornerstone of the position taken by Edison, and accepted by the opinion for reversal, is that the FCAC adopted in February 1974 was intended' to impose a fuel adjustment in the billing month to recover fuel costs incurred two months before. If…