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CUC may lower LEAC rate anew
“If the oil markets stay on the trends that they are today, the first part of the month in January 2015, we’ll probably have another adjustment in lowering the LEAC rate again.”
Thus said Commonwealth Utilities Corp. executive director Alan Fletcher yesterday at a CUC board meeting.
Fletcher said they are having some luck with diesel prices, which was down by 26 percent in November and continues to fall in December and may very well roll over into the next year.
The levelized energy adjustment clause or LEAC represents the fuel component of a power bill. It is the amount CUC spends to buy fuel.
CUC has already decreased its LEAC rates thrice this year. The first time was in September, from $.30426 per kWh to $.28902 per kWh. CUC reduced its LEAC rate again in November to $.25168 per kWh. The third time CUC did this was this month, to $.23616 per kWh.
“On Dec. 1, 2014, we had a 6.16-percent decrease for the December usage, which customers will see in their billings that will come out on January,” Fletcher told board members.
CUC gets their LEAC pricing on the last day of the month through the first day of the new month from Mobil Marianas and that’s where CUC sees a threshold for a change.
LEAC adjustments are made when the “Mean of Platts Singapore” or MOPS monthly pricing equals or exceeds 4.5 percent of the average per gallon cost of fuel used in the calculation of the LEAC charge.
