The Commonwealth Utilities Corp. projects to incur a slightly higher fuel cost this fiscal year.
CUC financial chief officer Charles Warren bared yesterday that the agency expects to spend about $65 million in the entire 12-month period of fiscal year 2014, a slight increase from last fiscal year’s $63 million.
In the first quarter alone, from Oct. 1 to Dec. 31, 2013, the agency already spent $16.9 million for fuel, Warren said.
He disclosed that the average weekly expense for fuel is $1.25 million.
“Fuel expenditures for the first quarter of fiscal year 2014 were $16.9 million. Projected fuel expense for the year, at this point, is about $65 million, or $1.25 million each week. So we’re essentially forecasting costs at about the same level [as last fiscal year],” he told Saipan Tribune.
CUC is a nonprofit organization whose operation relies heavily on the payment of its power, water, and wastewater customers. It remains under a state of emergency due the ongoing financial and workforce crisis at the agency.
On Jan. 1, 2014, power customers began seeing a slight drop in their electric bills after the Commonwealth Public Utilities Commission approved last month a new levelized energy adjustment clause of $0.30426 per kilowatt-hour. That will result in a monthly savings of $6.46 for residential users consuming up to 455 per kWh. LEAC is basically used for fuel purchases.
CUC operates three power plants that are all oil-fueled diesel engines.