01 Aug 2017
(Press Release) — The Commonwealth Utilities Corp. has been notified by Mobil Oil Mariana Islands Inc. that there was no change in the average fuel prices. Accordingly , the current fuel-adjustment charge or FAC pass-through rate, previously known as the levelized-energy-adjustment clause, remains at $0.14605 per kWh for the month of August.
The Commonwealth Public Utilities Commission requires CUC to adjust the FAC rate based on the price of oil. Adjustments are made only 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 LEAC in 2009 to recover fuel and fuel related costs, a system also used by power providers in Guam and the U.S. Virgin Islands. In May 2015, CPUC authorized CUC to change the name of LEAC to FAC to provide customers a more accurate description of the rate.
The 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 servicing.
Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/97335-cuc-fuel-adjustment-charge-remains-the-same-for-august