(Commonwealth Utilities Corp.) — CUC 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.
Pursuant to an order issued by the Commonwealth Public Utilities Commission, CUC is required 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.
As a result of the recent decrease in oil prices, the current FAC rate will go down by $.04022 (4 cents) from $.30712 per kWh to $.26690 per kWh effective Dec. 1, 2023.
The FAC is one of two components that make up the CUC electric rate, which is strictly for fuel and fuel-related purchases. 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.
