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CUC retains FAC rate for November
The Fuel Adjustment Charge remains at $0.16886 per kilowatt-hour for November, according to the Commonwealth Utilities Corp. yesterday.
In a statement yesterday, CUC said that there will be no adjustment to the FAC rate for the month of November, despite a slight increase in the Mean of Platts Singapore monthly pricing from October to November, as notified by Mobil Oil Mariana Islands Inc.
The CUC statement said the MOPS increase did not equal to or exceed 4.5 percent of the average per gallon cost of fuel.
The Commonwealth Public Utilities Commission has authorized CUC to adjust the FAC rate based on the price of oil. Adjustments are made only when the MOPS monthly pricing equals or exceeds 4.5 percent of the average per gallon cost of fuel, which is used in calculating the FAC rate.
The FAC used to be called the Levelized Energy Adjustment Clause, or LEAC, and CUC first instituted it in 2009 to recover fuel and fuel related costs—the same system used by power providers in Guam and the U.S. Virgin Islands.
In May 2015, the CPUC authorized CUC to change the name of LEAC to FAC to provide customers a more accurate description of the rate.
The FAC is used to purchase fuel and serves as one of the two components that make up a CUC power bill. The second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing.
CUC is a non-profit autonomous agency of the CNMI government. (CUC)
