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Falling fuel prices result in FAC decrease in October
The Commonwealth Utilities Corp. announced yesterday that the Fuel Adjustment Charge will decrease to $0.11165 per kilowatt-hour effective today, Oct. 1, 2020.
CUC was notified by Mobil Oil Mariana Islands, Inc. that there has been a decrease in the average international fuel prices, which will affect the FAC. As a result, the current FAC rate of $0.12397 per kWh will decrease to $0.11165 per kWh.
The FAC is one of two components that make up the CUC electric kWh 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 been 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% differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
CUC first instituted 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.
Although the FAC rate will decrease, CUC encourages its consumers to still practice energy conservation. (PR)
