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Rise in fuel prices results in fuel adjustment charge increase
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Posted on May 02 2022
Customers of the Commonwealth Utilities Corp. will be seeing a slight increase in their power bills this month, reflecting the price increase of fuel in international markets.
CUC has adjusted its fuel adjustment charge for the month of May, from $0.34564 per kilowatt-hour to $0.36225 per kWh effective yesterday, May 1, 2022.
In a public notice last Friday, CUC said that it has been notified by its fuel supplier, 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.
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 Plans 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. (PR)
