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CUC: Rise in fuel prices results  in Fuel Adjustment Charge increase

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(CUC) —  The Commonwealth   Utilities  Corp.  has been notified  by Mobil    Oil  Mariana  Islands,   Inc. that there has been an increase  in the average international    fuel  prices  which will affect the Fuel  Adjustment  Charge  or FAC.

As a result,  the current FAC rate of $0.11330 per kWh will increase  to $0.12397 per kWh effective Aug.   1, 2020.

Residential     customers     who  use  500  kWh  of  power   per  month   will   pay approximately    $5.34 more  in their  monthly   billing.

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    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.

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.

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