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Falling fuel prices result in lower FAC this April
The Commonwealth Utilities Corp. will be reducing its Fuel Adjustment Charge this April.
A CUC news release last Friday stated that it has been notified by its fuel supplier, Mobil Oil Mariana Islands, Inc., that there has been a decrease in the average international fuel oil prices that will affect the FAC. As a result, the current FAC rate will be reduced by 2.3 cents ($0.02318) from $0.27989 per kWh to $0.25671 per kWh effective April 1, 2023.
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 is required, pursuant to an order previously issued by the Commonwealth Public Utilities Commission (CPUC), 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 percent differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
CUC first instituted the 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 electric rate. (PR)
