THE Commonwealth Utilities Corp. has been notified by Mobil Oil Mariana Islands Inc. that there has been an increase in the average international fuel oil prices which will affect the Fuel Adjustment Charge. As a result, the current FAC rate of $0.20909 per kWh will increase to $0.23908 per kWh effective February 1, 2022.
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 is required, pursuant to an order previously issued by the Commonwealth Public Utilities Commission, to adjust, up or down, the FAC pass-through rate when the Mean of Platts Singapore MOPS monthly pricing equals or exceeds a 4.5 percent differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
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 on 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.
CUC is a non-profit autonomous agency of the CNMI government which provides electric power, water, and wastewater services to Saipan, Tinian, and Rota.
