Power rate hike
13 Jun 2016
- By Junhan B. Todiño – firstname.lastname@example.org – Variety News Staff
CITING an increase in average fuel prices, the Commonwealth Utilities Corp. says it will also increase its fuel adjustment charge or FAC pass-through rate.
The current FAC fuel charge previously known as the levelized energy adjustment clause or LEAC of $0.11283 per kWh will increase to $0.13809 per kWh effective June 1, 2016.
In a statement, CUC said with the new FAC, residential customers who use 500 kWh of power per month will pay $12.63 more for their monthly billing.
CUC first implemented the LEAC in 2009 to recover fuel and fuel-related costs.
In May 2015, the Commonwealth Public Utilities Commission authorized CUC to change the name of LEAC to FAC to provide customers with a 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 second rate component is the electric base rate, which is used to fund operations, projects, and debt service.
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 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. Although there is a slight increase in the June 2016 FAC, CNMI consumers have experienced a nearly 60 percent decline in the FAC since 2014, CUC said.