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Falling fuel prices result in decrease of FAC
The Commonwealth Utilities Corp. has been notified by Mobil Oil Mariana Islands, Inc. that there has been a decrease in the average international fuel oil prices which will affect the Fuel Adjustment Charge. As a result, the current FAC rate will be reduced by $0.0301 (3 cents) from $0.37241 per kWh to $0.34235 per kWh effective Sept. 1, 2022.
The FAC is one of the 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 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 (MOPS) monthly pricing provided by Mobil equals or exceeds a 4.5% differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
CUC first instituted the Levelized Energy Adjustment Clause 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 electric 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)
