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CUC lowers LEAC rate for power
Consumers will see a drop in their power bills
Expect to see lower power billings in the months ahead after the Commonwealth Utilities Corp. announced yesterday afternoon that it is reducing its levelized energy adjustment clause, or LEAC rate, effective Sept. 1.
“CUC is able to reduce the fuel charge and consumers will see a drop in their power bills,” said CUC executive director Alan Fletcher.
LEAC represents the fuel component of a power bill and accounts for 70 percent of electric rates on power bills.
CUC’s announcement translates to a drop of about1.5 cents per kWh.
CUC noted that there has been a “downward trend” in the oil markets for the past weeks, with the August change “piercing” the 4.5 percent threshold and allowing the decrease in the fuel charge.
The current LEAC rate of $.30426 per kWh will go down to $.28902 per kWh. The average residential account using 500 kWh will see a decrease of about $7.62 per month.
Fletcher said the LEAC rate is one of two components of a power bill. “It is used for fuel purchases, while the second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing,” he said.
The Commonwealth Public Utilities Commission last month allowed CUC to adjust the LEAC charge every month, instead of every six months, which will allow CUC to adjust monthly pricing based on the “Means of Platts Singapore” or MOPS’ monthly pricing.
Fletcher said that they are hopeful that the oil markets continue the trend as lower fuel prices directly translates into lower power bills for consumers.
“The only way to truly affect the overall rate is to switch our fuel source. This is one of the main drivers of the Integrated Resource Planning that is now underway,” Fletcher said in an earlier interview with Saipan Tribune.
The integrated resource plan’s purpose is to determine the best combination of both base-load and renewable energy sources capable of providing reliable power at the lowest price to consumers. CUC is now working with Leidos Engineering LLC on this.
Leidos will be conducting an independent third-party technical evaluation and monitoring of the proposals set by CUC for a most “cost-effective, long-term” energy solution for consumers.
Stakeholders will be meeting on the integrated resource plan this Thursday, Sept. 11.
