The increasing cost of fuel in the world market and the heightened pain at the gas pump will soon be reflected on your already-high utility bill.
The Commonwealth Utilities Corp. announced yesterday that its Fuel Adjustment Charge will be increasing from $0.36225 per kilowatt-hour to $0.43285 per kWh effective July 1, 2022.
CUC said that its fuel supplier, Mobil Oil Mariana Islands Inc., has notified it that there has been an increase in the average international fuel oil prices that will affect the FAC. This, in turn, will mean CUC will adjust the lube and fuel element by 19.49%, it said. The FAC rate is uniform across all customer classes, whether residential, commercial, or government.
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 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. (Saipan Tribune)