CUC hikes Dec. power charge


There has been a rise in the average world fuel prices, affecting the fuel adjustment charge of the Commonwealth Utilities Corp. effective December.

In a statement yesterday, CUC said it has been notified by Mobil Oil Mariana Islands, Inc. of the increase in average fuel prices.

As a result, the current FAC rate of $0.16886 per kWh will be increased to $0.18231 per kWh effective Dec. 1, 2017.

Residential customers who use 500 kilowatt-hours of power per month will pay approximately $6.72 more in their monthly billing.

The FAC is one of two components that make up the CUC electric 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 increase the FAC pass-through rate when the Mean of Platts Singapore 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.

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 U.S. Virgin Islands. In May 2015, 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. (CUC)

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