04 Jan 2019
- By Junhan B. Todiño – [email protected] – Variety News Staff
THE Commonwealth Utilities Corp. has reduced the fuel adjustment charge from $0.21246 per kWh to $0.17624 per kWh effective Jan. 1, Wednesday.
CUC Executive Director Gary Camacho said the series of reduction in fuel prices has enabled CUC to offer ratepayers such a New Year’s Day relief.
As a result, he added, residential customers who use 500 kWh of power per month will pay approximately $18.11 less in their monthly billing.
In December, CUC also reduced the fuel adjustment charge after Mobil Oil Marianas Island Inc. notified CUC about the decrease in the average international fuel prices.
The fuel adjustment charge, or FAC, is one of the two components of CUC’s electric kWh rate which is used to purchase fuel. The second component is the base rate, which is used to fund operations, projects and debt service.
The base rate for 1 to 350 kWh’s of power consumption is $0.0210 per kWh for residential customers; $0.1130 for commercial customers; and $0.1240 for government accounts.
The base rate has not increased since April 17, 2014.
Pursuant to the Commonwealth Public Utilities Commission’s order, CUC is required to adjust the FAC pass-through rate accordingly whenever 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.
FAC was previously called the Levelized Energy Adjustment Clause, which CUC instituted to recover fuel and fuel-related costs. CUC said this system is also used by power providers on Guam and the U.S. Virgin Islands.
Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/109801-cuc-announces-power-rate-cut-2019-01-04