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Rise in fuel prices result in fuel adjustment charge increase
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Posted on Jan 31 2022
Effective tomorrow, Feb. 1, 2022, the cost of electric power will be going up slightly due to an increase in the average fuel oil prices worldwide that will affect the Fuel Adjustment Charge of the Commonwealth Utilities Corp.
In a news release Friday, CUC said it has been notified by its fuel supplier, Mobil Oil Mariana Islands Inc., that there has been an increase in the average international fuel oil prices, which will affect the FAC. As a result, the current FAC rate of $0.20909 per kilowatt-hour will increase to $0.23908 per kWh.
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, to adjust (up or down) the FAC pass-through rate when the Mean of Platts Singapore monthly pricing equals or exceeds a 4.5% differential of the average per gallon cost of fuel used in the calculation of the current FAC rate. (PR/Saipan Tribune)
