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LEAC rate hike next week
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Posted on Apr 05 2012
By Moneth Deposa
Reporter
Reporter
The continued price spike in world oil prices will result in an increase in the Commonwealth’s levelized energy adjustment charge, or LEAC, effective next week.
Charles Warren, the Commonwealth Utilities Corp. chief financial officer, said yesterday that the new LEAC rate is a 7.7258-percent increase over the existing LEAC rate of $0.30550 per kWh. This translates to an increase of $0.0236 per kilowatt-hour. To the average residential customer that uses 500 kWh a month, the impact on their bill is $11.80.
Warren said the new rate was reviewed by CUC’s rate consultant, economists.com.
He said that CUC will enforce the new LEAC tariff on or after April 9.
LEAC is part of the customer’s bill that reflects the cost of fuel. It goes up or down to reflect the cost of buying fuel to run the power plants. The other element of the power bill is the electric base rate.
The last time the LEAC rate was adjusted was in January, when it went down a bit.
According to Warren, CUC spent $4.796 million for fuel and lube supply in February. This went up to $5.59 million in March.
Warren pointed out that gas stations on island have raised their fuel prices several times compared to CUC, which has yet to adjust one.
