CUC: Rising fuel prices result in FAC increase

Posted on Jun 03 2015

, , ,

Following a rise in average fuel prices, the Commonwealth Utilities Corp. will increase the Fuel Adjustment Charge (FAC) pass-through rate, known previously as the Levelized Energy Adjustment Clause (LEAC).

The current LEAC fuel charge of $.17108 per kWh will increase to $.19346 per kWh, or 13-percent effective June 1. As a result, residential customers who use 455 kWh of power per month will pay an additional $10 in their monthly billing.

CUC first instituted 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 Commonwealth Public Utilities Commission authorized CUC to change the name of LEAC to FAC to provide customers a more accurate description of the rate.

The FAC is used to purchase fuel and serves as one of the two components that make up a CUC power bill. The second rate component is the electric base rate, which is used to fund operations, projects, and debt servicing.

CPUC granted CUC the ability to adjust the FAC rate based on the price of oil. Adjustments are made when the Mean of Platts Singapore (MOPS) monthly pricing equals or exceeds 4.5-percent of the average per gallon cost of fuel used in the calculation of the FAC rate.

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 an almost 36-percent decline in the LEAC since mid-2014.

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.

Please direct inquiries to CUC Call Center 664-4282. (CUC)

Press Release
News under Press Release are official statements issued to Saipan Tribune giving information on a particular matter.

Related Posts

Disclaimer: Comments are moderated. They will not appear immediately or even on the same day. Comments should be related to the topic. Off-topic comments would be deleted. Profanities are not allowed. Comments that are potentially libelous, inflammatory, or slanderous would be deleted.