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Small increase in LEAC rate as markets adjust
The Commonwealth Utilities Corp. announced yesterday an increase in the LEAC fuel charge pass-through. Due to a change in average fuel prices, CUC will adjust the fuel-charge by 7.25 percent and consumers will see an increase in power bills of about 1.1¢ per kWh effective with their March usage.
The current LEAC fuel-charge of $.15959 per kWh will move to $.17108 per kWh. A residential account using 500 kWh will see a bump of $5.74 per month.
LEAC stands for Levelized Energy Adjustment Clause and is one of the two components of a power bill.
The LEAC is used for fuel purchases, while the second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing.
In July 2014, the Commonwealth Public Utilities Commission granted the utility the ability to adjust the LEAC charge depending on the price of oil. Adjustments are made when the “Mean of Platts Singapore” or MOPS monthly pricing equals or exceeds 4.5 percent of the average per gallon cost of fuel used in the calculation of the LEAC charge.
The CPUC conducts periodic reviews of CUC’s fuel charges to ensure that consumers pay no more or less than the actual cost of fuel.
CNMI consumers have experienced almost 45 percent decline in the LEAC since mid-2014. (CUC)
