(CUC) — The Commonwealth Utilities Corporation announces that the Fuel Adjustment Charge or FAC remains at $0.34235 per kWh for October.
Although there has been a slight decrease in the Mean of Platts Singapore monthly pricing from September 2022 to October 2022 as noted by Mobil Oil Mariana Islands Inc., the decrease did not equal or exceed a 4.5% differential of the average per gallon cost of fuel.
CUC is required, pursuant to an order issued by the Commonwealth Public Utilities Commission, to adjust up or down 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 current FAC rate.
The FAC is one of two components that make up the CUC Electric kWh Rate which is used to purchase fuel. The second component is the CUC Base Rate which is used to fund operations, projects, and debt service. This Base Rate has not been increased since April 17, 2014.
CUC first instituted the Levelized Energy Adjustment Clause or 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, the CPUC authorized CUC to change the name of LEAC to FAC to provide customers a more accurate description of the electric rate.
