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Falling fuel prices result in lower FAC
Good news for Commonwealth Utilities Corp. customers this new year—the public can expect to see a lower electric bill this January.
A news release yesterday stated that CUC’s fuel supplier, Mobil Oil Mariana Islands, Inc., has notified it that there has been a decrease in the average international fuel oil prices that will affect the Fuel Adjustment Charge. As a result, the current FAC rate will be reduced by 4.4 cents ($0.0437) from $0.32360 per kilowatt-hour to $0.27989 per kWh effective Jan. 1, 2023.
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 provided by Mobil equals or exceeds a 4.5% differential of the average per gallon cost of fuel used in the calculation of the current FAC rate. (Saipan Tribune/PR)
