Fuel Adjustment Clause Reform Act

Fuel Adjustment Clause Reform Act - Directs the Federal Power Commission, within one year of the passage of this Act and consistent with the procedures of the Administrative Procedures Act, to establish a standardized formula for fuel adjustment clauses.

States that the standardized clause shall permit the passthrough only of actual increases in the cost of purchased fuel, and shall not include any costs associated with the transportation, storage, or processing of fuel.

Provides that no public utility may increase any rate or charge for electric energy subject to the jurisdiction of the Commission in order to reflect any increased fuel cost if such increased rate or charge is calculated under a fuel adjustment clause in any wholesale rate schedule of such utility and if such fuel adjustment clause allows more than 75 percent of such increased fuel cost to be reflected in the increased rate or charge.

Provides that the Secretary of the Treasury shall pay, out of funds appropriated to carry out this Act, to any utility company reimbursement in an amount equal to $1.20 for every barrel of imported residual fuel oil purchased by such utility company.