EFFECTIVE July 1, 2022, the fuel adjustment charge or FAC will be 19.49% higher, the Commonwealth Utilities Corp. announced in its new schedule of electric charges and rates.
The FAC will increase to $0.4328 per kilowatt hour from $0.36225 per kilowatt hour due to an increase in the average fuel oil prices, CUC said.
“Adjustments are made when the Mean of Platts Singapore monthly pricing equals or exceeds a 4.5% differential of the average per gallon cost of fuel in the calculation of the fuel adjustment charge,” CUC added.
According to Energy Insights, “Mean of Platts Singapore [or MOPS] is a pricing basis for many refined products in southeast Asia. It refers to the average price reported by the price assessment agency Platts for a product in the Singapore trading hub. For most refined products, MOPS is the benchmark price for the Asia market.”
CUC said the FAC is one of two components that make up the electric kWh rate and is used to purchase fuel.
The second component is the base rate which is used to fund operations, projects, and debt service. CUC said the base rate has not been increased since April 17, 2014.
In an interview, Sen. Frank Q. Cruz, the vice chairman of the Senate Committee on Public Utilities, Transportation and Communications, said he understands CUC’s need to adjust the fuel charge because of the increase in fuel prices which, he added, are beyond the government’s control.
Cruz believes “there’s still something the legislature and the executive branch can do with CUC to at least ease the burden on the ratepayers.” He noted that CUC is also seeking an exemption from the 1% public auditor’s fee which it has not paid.
“The people have been suffering from high prices of fuel and other basic commodities, but the salaries of employees both in the public and private sectors have not been raised,” he added.
CUC Executive Director Gary Camacho earlier told the House PUTC Committee that CUC does not earn revenue from the FAC which is used for the purchase of fuel needed by the power plants.
The House of Representatives has adopted House Resolution 22-20 “urging” Gov. Ralph DLG Torres to issue ARPA-funded $1,000 vouchers to help qualified households pay their utility bills.
The administration, for its part, has announced the release of ARPA-funded stimulus cards worth $500 each. They can also be used to pay CUC bills.
