»Consumers benefit as market declines
The Commonwealth Utilities Corp. announces a reduction in the LEAC fuel charge pass-through. Due to continued decline in average fuel prices, CUC is able to reduce the fuel-charge by 18.65 percent and consumers will see a drop in power bills of about 3.66¢ per kWh effective with their February usage.
The current LEAC fuel-charge of $.19617 per kWh will reduce to $.15959 per kWh. A residential account using 500 kWh will see a decrease of $18 per month.
LEAC stands for Levelized Energy Adjustment Clause and is one of the two components of a power bill.
The LEAC is used for fuel purchases, while the second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing.
In July 2014, the Commonwealth Public Utilities Commission granted the utility the ability to adjust the LEAC charge depending on the price of oil. Adjustments are made when the “Mean of Platts Singapore” or MOPS monthly pricing equals or exceeds 4.5 percent of the average per gallon cost of fuel used in the calculation of the LEAC charge. The CPUC conducts periodic reviews of CUC’s fuel charges to ensure that consumers pay no more or less than the actual cost of fuel.
CNMI consumers have experienced almost 50 percent decline in the LEAC since mid-2014. Obviously, this is great news as every dollar saved on fuel directly translates into lower power bills, which means more spending power for consumers here in the CNMI. (CUC)