automatic-adjustment clause

A provision in a utility-rate schedule that allows a public utility to increase its rates without a public hearing or state review, if certain operating costs, such as the price of fuel, increase. Federal Energy Regulatory Comm’n v. Mississippi, 456 U.S. 742, 102 S.Ct. 2126 (1982). [Cases: Electricity 11.3(4, 6); Public Utilities 128, 167. C.J.S. […]

automatic-adjustment clause. A provision in a utility-rate schedule that allows a public utility to increase its rates without a public hearing or state review, if certain operating costs, such as the price of fuel, increase. Federal Energy Regulatory Comm’n v. Mississippi, 456 U.S. 742, 102 S.Ct. 2126 (1982). [Cases: Electricity 11.3(4, 6); Public Utilities 128,