Same fuel adjustment charge this month

The Fuel Adjustment Charge will remain for the month of August despite a slight drop from the monthly pricing provided by Mean of Platts Singapore as stated by the Commonwealth Utilities Corp. The current FAC, which CUC increased last June due to rising fuel prices in the international market, was at $0.22317 per kilowatt-hour.

The slight drop on MOPS’ price, as notified by Mobil Oil Mariana Islands Inc., is not equal to or exceeding 4.5 percent on the fuel’s average per gallon cost.

“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 MOPS’ monthly pricing 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,” said CUC in a statement.

This is the second straight month that the FAC remains the same, since CUC increased the rate from $0.20109 per kWh to $0.22317 on June 1 this year.

The base rate, aside from FAC, is the other component that CUC uses for its electric kWh rate. CUC has not increased its base rate—used to fund its operations, projects, and debt services—since April 17, 2014.

CUC first used the Levelized Energy Adjustment Clause in 2009 in order to recover its fuel and other related costs. Power providers in Guam and U.S. Virgin Islands also used the same system.

CPUC, in May 2015, authorized CUC to change the name of LEAC to FAC in order to give its customers a more accurate description of its rate.

In other news, CUC is informing the public to watch out for an offensive odor near Agingan Point due to the Agingan Wastewater Treatment Plant experiencing mechanical failure on its major component called clarifier on one of its acration basins.

“This [clarifier] is a key component for removing the suspended solids from treated the wastewater collected from the nearby communities,” said CUC in a separate statement.

CUC said the surrounding area near the wastewater treatment facility may experience mild to severe offensive odor in the next three weeks that started yesterday. “These odors should only be noticeable around and nearby the Agingan Point area.”

“The odors are a result of excessive holding times of solids in the clarifier basin. The CUC Wastewater Division is in the process of emptying the clarifier basin to determine the extent of damages and repairs that will be needed,” added the statement.

The offensive odor poses no health risks to people, although different individuals will have different levels of tolerance to foul smell.