The Commonwealth Utilities Cor. announced that the Fuel Adjustment Charge remains at S0.34235 per kWh for the month of October.
Although there has been a slight decrease in the Mean of Platts Singapore (MOPS) monthly pricing from September 2022 to October 2022 as notified by Mobil Oil Mariana Islands, Inc., the decrease did not equal or exceed a 4.5% differential of the average per gallon cost of fuel. 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 (MOPS) monthly pricing equals or exceeds a 4.5 percent differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
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 first instituted the Levelized Energy Adjustment Clause (LEAC) 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.
CUC is a non-profit autonomous agency of the CNMI government which provides electric power, water, and wastewater services to the islands of Saipan, Tinian, and Rota. (PR)