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DUE TO RISE IN FUEL PRICES
CUC increases power rate
The Commonwealth Utilities Corp. announced last night that it is increasing its fuel adjustment charge, effective tomorrow, due to a rise in average international fuel prices.
The current FAC rate of $0.20109 per kilowatt-hour will increase to $0.22317 per kWh effective June 1, 2018.
Residential customers who use 500 kWh of power per month will pay approximately $11.04 more in their monthly billing.
In a notice last night, CUC said that it was notified about the increase in average world fuel prices by its supplier, Mobil Oil Mariana Islands Inc.
The FAC is one of two components that make up the CUC electric rate, which is used to purchase fuel. The second component is the CUC base rate, which is used to fund operations, projects, and debt service. This base rate has not increased since April 17, 2014.
CUC is required, pursuant to an order previously issued by the Commonwealth Public Utilities Commission, to adjust (up or down) the FAC pass-through rate when the mean of platts Singapore monthly pricing equals or exceeds a 4.5 percent differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
CUC first imposed the levelized energy adjustment clause in 2009 to recover fuel and fuel related costs, a system also used by power providers in Guam and the 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 electric rate.
