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CUC: No change to FAC for May
The Commonwealth Utilities Corp. has announced that the Fuel Adjustment Charge remains at $0.20103 per kWh for the month of May.
Although there has been a slight increase in the Mean of Platts Singapore monthly pricing from February to May as notified by Mobil Oil Marianas, Inc., the increase did not equal or exceed a 4.5 percent differential of the average per gallon cost of fuel. Accordingly, there will be no adjustment made to the overall CUC kWh rate for the month of May.
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 Platts Singapore monthly pricing equals or exceeds 4.5 percent differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
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 first instituted LEAC 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 rate.
CUC is a non-profit autonomous agency of the CNMI government which provides electric power, water, and wastewater services to the islands of Saipan, Tinian, and Rota. (PR)
