(CUC) — The Commonwealth Utilities Corporation has been notified by Mobil Oil Mariana Islands that there has been an increase in the average international fuel oil prices that affects the Fuel Adjustment Charge or FAC.
Pursuant to an order issued by the Commonwealth Public Utilities Commission, CUC is required to adjust the FAC pass-through rate when the “Mean of Platts Singapore” monthly pricing equals or exceeds a 4.5% differential of the average per gallon cost of fuel used in the calculation of the FAC rate.
As a result, the current FAC rate will increase by $0.01575 from the current rate of $0.24894 per kWh to $0.26469 per kWh effective March 1, 2024.
The FAC, which is set monthly, is one of two components that make up the CUC electric rate, and is strictly for fuel and fuel-related purchases. The second component is the CUC base rate, which has not increased since April 2014. It is used to fund operations, projects, debt services, or non-fuel related expense.
