The new rate, Muna said, will last for three months based on the approved levelized energy adjustment clause, or LEAC, by the Public Utilities Commission.
The LEAC replaces the fluctuating monthly electric rate that CUC set every month according to the current oil price.
“This will give the public a certain degree of stability with respect to the rate,” Muna said. “We are not changing the rate every month. This will allow the rate to be constant.”
The previous month-to-month rate fluctuation allowed CUC to pass to its customers the increases and decreases of the oil price in the world market.
The LEAC is based on the following factors: the projected fuel expense for the coming LEAC period; the difference between the fuel revenue and actual fuel expenses as approved by PUC; and refunds or credits from the supplier, excluding legal settlements.
These are then divided by the projected retail kilowatt-hours for the next six months.
For residential customers consuming less than 500 kilowatt hours, Muna said, the base rate is $0.016.
These customers will also pay the LEAC for a total of $0.24589 per kilowatt hour.
Under this scheme, Muna said, CUC will absorb any sharp increases in the fuel price, and still be able to maintain the rate.
