CUC cuts FAC rate this month
Expect to see a lower power bill this August.
The Commonwealth Utilities Corp. announced Friday that it will be lowering its Fuel Adjustment Charge this month, effective today, Aug. 1, 2022, in the wake of falling fuel prices in the international market.
According to a CUC news release Friday, it said that it has been notified by its fuel supplier, Mobil Oil Mariana Islands Inc., that there has been a decrease in the average international fuel oil prices that will affect the FAC. As a result, the current FAC rate will be reduced by $0.06044 (6 cents) from $0.43285 per kWh to $0.37241 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 provided by Mobil equals or exceeds a 4.5% differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
CUC first instituted the Levelized Energy Adjustment Clause in 2009 to recover fuel and fuel related costs, a system also used by power providers in Guam and the Virgin Islands. In May 2015, the CPUC authorized CUC to change the name of LEAC to FAC to provide customers a more accurate description of the electric rate. (PR/Saipan Tribune)