The Commonwealth Utilities Corp. announced yesterday that the fuel adjustment charge, formerly known as the levelized energy adjustment charge, remains at $0.18231 per kWh for the month of January 2018.
Although there has been a slight increase in the Mean of Platts Singapore monthly pricing from December to January as notified by Mobil Oil Mariana Islands, Inc., the increase did not equal to or exceed 4.5 percent of the average per gallon cost of fuel. Accordingly, there will be no adjustment made to the FAC rate for the month of January, 2018.
The Commonwealth Public Utilities Commission had allowed CUC to adjust the FAC 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.
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 CPUC 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. (CUC)