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CUC fuel adjustment charge remains the same in August
There has been no change in average fuel prices, resulting in the Commonwealth Utilities Corp. retaining its fuel adjustment fee at $0.14605 per kilowatt-hour for August.
In a statement yesterday, CUC said its fuel supplier, Mobil Oil Mariana Islands, Inc., informed it that there have been no changes in fuel prices. Accordingly, the FAC pass-through rate, previously known as the levelized energy adjustment clause, remains the same.
The Commonwealth Public Utilities Commission had allowed CUC to adjust the FAC rate based on the price of oil. Adjustments are made only when the Mean of Platts Singapore monthly pricing equals or exceeds 4.5 percent of the average per gallon cost of fuel.
CUC first instituted LEAC in 2009 to recover fuel and fuel related costs, a system also used by power providers in Guam and the U.S. 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 rate.
The FAC is used to purchase fuel and serves as one of the two components that make up a CUC power bill. The second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing.
