02 Oct 2017
- By Junhan B. Todiño – [email protected] – Variety News Staff
ANOTHER average fuel price hike in the global oil market has resulted in an increase in the Commonwealth Utilities Corp.’s fuel adjustment charge pass-through rate.
On Friday, CUC Executive Director Gary Camacho said they had been informed by Mobil Oil Mariana Islands Inc. about the rise in the average fuel prices.
He said CUC’s fuel adjustment charge rate of $0.15917 per kWh will go up to $0.16886 per kWh.
Regular customers who use 500 kWh of power per month will start paying $4.85 more in their monthly billing starting Oct. 1, he added.
In August, CUC increased its fuel adjustment charge, previously known as the Levelized Energy Adjustment Clause or LEAC from $0.14605 per kWh to $0.15917 per kWh.
Also in August, CUC started distributing utility billing credits to active residential electric accounts to subsidize the fuel-adjustment charge.
Camacho said based on the Commonwealth Public Utilities Commission’s order, CUC is required to increase the fuel adjustment charge or FAC pass-through rate 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.
CUC first instituted the rate in 2009 to recover fuel and fuel-related costs.
The fuel adjustment charge, one of the two components of the CUC power bill, is earmarked for fuel purchase.
The second rate component is the electric base rate, which is designated for funding CUC operations, projects and debt servicing.
Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/98973-cuc-announces-power-rate-hike-2017-10-02