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CUC cuts LEAC rate once again
Power customers of the Commonwealth Utilities Corp. will start to see lower power bills in the months ahead after CUC announced yesterday morning that it is reducing its levelized energy adjustment clause, or LEAC rate.
LEAC accounts for 70 percent of power bills and represents the fuel component.
“CUC is able to reduce the fuel charge and consumers will see a drop in their power bills,” said CUC executive director Alan Fletcher.
CUC’s announcement translates to a drop of about 0.03734 cents per kWh.
CUC noted that there has been a “downward trend” in the oil markets for the past weeks, with the October change “piercing” the 4.5-percent threshold and allowing the decrease in the fuel charge.
The current LEAC rate of $.28902 per kWh will go down to $.25168 per kWh. The average residential account using 500 kWh will see a decrease of about $18.67 per month.
This is the second time that CUC consumers will see a decrease in their power bills. On Sept. 8, the LEAC rate went from $.30426 per kWh to $.28902 per kWh.
The LEAC rate is one of two components of a power bill. It is used for fuel purchases, while the second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing.
The Commonwealth Public Utilities Commission last month allowed CUC to adjust the LEAC charge every month, instead of every six months, which will allow CUC to adjust monthly pricing based on the “Means of Platts Singapore” or MOPS’ monthly pricing.
Fletcher said that they are hopeful that the oil markets will continue the trend as lower fuel prices directly translates into lower power bills for consumers.
