Based on the CPUC’s decision and order on Dec. 18, 2008, CUC should implement the electric fuel rate that was restructured into a levelized energy adjustment clause, or LEAC.
CUC Executive Director Antonio Muna said the order set the LEAC rate at $0.22989 per kwh effective Jan. 1, 2009.
The LEAC rate replaced the fluctuating monthly electric rate that CUC set every month according to the oil price, Muna said.
He said the LEAC will allow for a stable rate for three months.
“This will give the public a certain degree of stability with respect to the rate. We are not changing the rate every month. This will allow the rate to be constant,” he told Variety.
With the fluctuation rate formula, CUC passed on to the customers the prevailing oil price in the world market.
The LEAC, for its part, is based on the projected fuel expense for the coming LEAC period — the difference between the fuel revenue and actual fuel expenses as approved by the CPUC, and refunds or credits from the supplier, excluding legal settlements.
Those factors are divided by the projected retail kilowatt-hours for the next six months to develop the LEAC rate, the CPUC report stated.
The new schedule of electric charges and rates issued by CUC for this month stated that the LEAC rate and other rates and charges will remain in force and effect until revised by CPUC’s.
For this month, residential customers using less than 500 kwh will pay $0.24589 per kwh, including the base rate of $0.016 per kilowatt-hour.
Commercial and government will pay a fixed monthly customer charge of $7.67 and $0.31589 and $0.32089 total rate per kwh.
In 2007, CUC customers $0.258 per kwh from Nov. 2 to Dec. 31 and $0.176 kwh from Oct. 4 to Nov. 1.
The highest rate in 2008 was for the July to August period — $0.413 per kwh, while the lowest was $0.176 kwh from March to May.
