CUC: Fuel price up but no rate hike
- By Junhan B. Todiño – email@example.com – Variety News Staff
THERE will be no power-rate hike in January despite a slight increase in the price of oil, Commonwealth Utilities Corp. Executive Director Gary Camacho said in a statement Thursday.
The fuel adjustment charge of $0.18231 per kWh will remain in effect, he added.
He said Mobil Oil Mariana Islands Inc. notified CUC about the slight increase in the Mean of Platts Singapore monthly pricing from December to January.
However, Camacho said the increase did not equal or exceed 4.5 percent of the average per-gallon cost of fuel.
The Commonwealth Public Utilities Commission authorizes CUC to alter the fuel adjustment charge or FAC rate based on the price of oil.
But such adjustments are made only 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 FAC rate.
The FAC was previously known as the levelized energy adjustment clause or LEAC rate which was instituted by CUC in 2009 to recover fuel and fuel-related costs.
In May 2015, CPUC authorized CUC to change the name LEAC to FAC to provide customers a better understanding and more accurate description of the rate.
FAC is used to purchase fuel and serves as one of the two components that make up a CUC power bill. The other component is the electric base rate which is used to fund CUC operations, projects, and debt servicing.