Rise in fuel prices causes FAC to increase

The Commonwealth Utilities Corp. has been notified by Mobil Oil Mariana Islands that there has been an increase in the average international fuel oil prices which affects the Fuel Adjustment Charge. However, pursuant to an order previously issued by the Commonwealth Public Utilities Commission, CUC is required to adjust 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 FAC rate.

As a result, the current FAC rate will increase by $0.01575 from the current rate of $0.24894 per kWh to $0.26469 per kWh effective March 1, 2024.

The FAC is one of two components that make up the CUC Electric Rate, which is strictly for fuel and fuel-related purchases. The second component is the CUC Base Rate, which has not increased since April 2014, is used to fund operations, projects, debt services, or non-fuel-related expenses. (PR)

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