Whenever the Commission approves a purchased power adjustment clause pursuant to Section 258 of this title, the clause shall apply to all similar distribution cooperatives affected by such increased costs. In addition, the Commission shall continually monitor and oversee the application of the adjustment clauses. The Commission shall hold a public hearing thereon whenever it deems it necessary, but no less frequently than once every twelve (12) months. The Commission shall undertake such other investigation thereof as is necessary to determine whether:

1. Charges or credits made under the adjustment clauses are based upon the actual prices paid for purchased power, are properly computed in accordance with the applicable adjustment clause, and that portion representing fuel adjustment charges made by an electric generation cooperative are fair, equitable and properly computed; or

2. Whether the purchased power adjustment clause should be amended, suspended or discontinued.

If the Commission finds that the charges or credits are not based upon the actual prices paid for purchased power, or are not properly computed in accordance with the applicable adjustment clause, it shall recompute the charges or credits. Appropriate adjustments shall then be ordered by the Commission in the amount used in calculating the power adjustment charge for one (1) or more succeeding months under the purchased power adjustment clause by the electric distribution cooperative making the error. The purchased power adjustment clause may be amended upon a finding of changed circumstances by the Commission, but shall not be wholly discontinued or suspended except by order of the Commission after due notice and hearings for the cooperatives affected have been rendered.

Laws 1977, c. 252, § 10, emerg. eff. June 15, 1977; Laws 1991, c. 332, § 4, eff. July 1, 1991.