A dip in global fuel prices has prompted the Commonwealth Utilities Corp. to decrease its power rates starting this month.
Starting June 1, CUC lowered the fuel component of its rate, called the Fuel Adjustment Charge pass-through rate, from $0.16381 per kilowatt-hour to $0.15330 per kWh.
That means residential ratepayers who consume 500 kWh a month will be able to save about $5.26 in their monthly billing. The new FAC rate is effective this month and will be seen in the June billing cycle.
The FAC rate is determined when the Mean of Platts Singapore’s monthly pricing equals or exceeds 4.5 percent of the average per gallon cost of fuel. MOPS is the average set of Singapore-based oil product price assessments that is published by Platts, a company that is a provider of global energy, petrochemicals, metals, and agriculture information.
FAC was known as the levelized energy adjustment clause in 2009 before CUC renamed it to FAC in 2015 to provide customers a more accurate description of the rate.
The last FAC rate adjustment was on Feb. 1.
The FAC is used to purchase fuel and serves as one of the two components that make up a CUC power bill. The second component is the electric base rate, which is used to fund operations, projects, and debt servicing for CUC.