(CUC) — The Commonwealth Utilities Corp. has been notified by Mobil Oil Mariana Islands, Inc. that there has been a decrease in the average international fuel oil prices which may affect the Fuel Adjustment Charge or FAC.
Pursuant to an order previously issued by the Commonwealth Public Utilities Commission, CUC is required to adjust — increase or decrease — 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.
As a result, the current FAC rate will decrease by $0.01796 from $0.26690 per kWh to $0.24894 per kWh effective Jan. 1, 2024.
The FAC is one of two components that make up the CUC electric rate, which is strictly for fuel and fuel-related purchase. The second component is the CUC base rate, which is used to fund operations, projects, debt services, or any non-fuel related expenses. This base rate has not increased since April 2014.
