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LEAC to be renamed ‘fuel adjustment clause’
With its goal of better explaining the alphabet soup in one’s power bill, utility regulators will rename the levelized adjustment clause, or LEAC rate.
The Commonwealth Public Utilities Commission ordered yesterday by unanimous vote, among others, to change the “LEAC” to the “fuel adjustment charge,” or FAC.
This after the Commonwealth Utilities Corp. requested the change out of reported puzzlement and questions from customers.
According to written testimony from CUC consultant Robert Young, one of these questions was, “What is this leak (sic) charge on my bill, I do not have any electric leaks!”
CPUC chair Joseph Guerrero said after considering both CUC reports on customer confusion as well as their own consultants’ opposition to the name change, he thought it “wise to support changing the name” of the rate.
“Fuel is the primary drive of this charge” and the others that make up the charge are “nominal,” he said.
CUC counsel James Sirok reported that about 95 percent of the fuel adjustment charge relates to fuel.
In addition to this order, CPUC also extended the utility’s authority to make adjustments to this charge.
As they have done over the last year, CUC will continue to adjust the fuel adjustment charge in the event that oil prices drop or rise. If this change equals or exceeds a 4.5 difference in CUC’s average per gallon cost of fuel, CUC can adjust the charge to reflect the higher or lower prices.
