The method of AC stabilization to enhance the contrast of a ferroelectric liquid crystal (FLC) device is well established, however the actual process taking place is not well understood. Here a careful analysis of propagating optic mode data for an AC stabilized cell leads to the conclusion that the AC stabilization process involves a torque around the smectic cone, very similar to the DC/dipole interaction. This shows that the dielectric tensor of a FLC is BIAXIAL. The degree of this biaxiality is measured by comparison between AC and DC interaction energies.