CUC to reduce power rate, again

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COMMONWEALTH Utilities Corp. Executive Director Gary Camacho on Saturday announced a decrease in the fuel adjustment charge for power bills starting April 1.

He said this is a result of the reduction of the average international fuel prices, which affects the fuel adjustment charge. The FAC is one of the two components that make up CUC’s electric kWh rate and is used to fund operation, projects, and debt services.

The other component is the base rate of $0.0210 per kWh for 1 to 350 kWhs of power consumption for residential customers; $0.1130 for commercial customers; and $0.1240 for government accounts. The base rate has not been increased since April 17, 2014.

“We are happy that fuel prices went down as we face the challenges posed by the Covid-19 crisis,” Camacho said.

The FAC, which was $0.16635 per kWh, is now $0.11885 per kWh.

Camacho said residential customers who use 500 kWh of power per month will be paying approximately $23.75 less for their monthly power bills.

“Although the FAC rate has been decreased, CUC encourages its consumers to practice energy conservation,” he said.

CUC is required to adjust the FAC pass-through rate when the Mean of Platts Singapore monthly pricing equals or exceeds 4.5 percent differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.

CUC announced a power rate cut for March after the FAC declined to $0.16635 per kWh from $0.18803 per kWh.

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