2651 ORD REVISING FUEL ADJUSTMENT CLAUSE OF TX POWER AND LIGHT COMPANY IN COP

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~ PROCEDURE FOR APPROVAL OF PAYMENTS TO AFFILIATES Because Texas Electric Service Company, Texas Power b Light Company, and Dallas Power & Light Company ("the Companies") purchase fuel and fuel services from affiliates and affiliated interests and purchase power from each other, and because prices paid to affiliates and affiliated interests may be charged to the Companies' ratepayers only if found to be reasonable in compli- ance with Section 41(c)(1) of the Public Utility Regulatory Act (the "Act"), the fuel cost factor tariff schedules of the Compa- nies may be utilized to recoup those expenses which are incurred by the Companies by reason of payments made to affiliates and affiliated interests only upon the following additional terms and conditions: 1. Znsofar as fuel costs as used in calculation of the fuel cost factor arise by reason of payments to affiliates, all estimates of same submitted to the Commission under this Procedure shall include only those items within the definitions set forth in the Chart of Accounts of the affiliates, Texas Utilities Generating Company (TUGCO) and Texas Utilities Fuel Company (TUFCO), being attached hereto as Exhibits A(5) and A(6), respectively. The Chart of Accounts for Dallas Power & Light Company, Texas Power & Light Company, and Texas Electric Service Company are the Uniform System of Rccounts for Class A Utilities as required by the Public Utility Commission's Substantive Rules. That an item is within the definitions set forth in the charts of Account of TUGCO, TUFCO, or the , Companies does not establish that the cost of the item is reasonable or should be charged to ratepayers or should be passed through the fuel clause rather than being recouped throuqh base rates. 2. Charges will not be included in the calculation of the