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Increase in global fuel prices results in FAC hike
The Commonwealth Utilities Corp. has been notified by Mobil Oil Mariana Islands, Inc. that there has been an increase in the average international fuel oil prices that will affect the Fuel Adjustment Charge.
As a result, the current FAC rate of $0.14704 per kWh has increased to $0.16578 per kWh effective March 1, 2021. Residential customers who use 500 kWh of power per month will pay approximately $9.37 more in their monthly billing.
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 (MOPS) 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. (PR)
