(CUC) — The Commonwealth Utilities Corporation has been advised by Mobil Oil Mariana Islands, Inc. that there has been a decline in average international oil prices which will affect the Fuel Adjustment Charge or FAC. As a result, FCC’s current rate will be reduced by $0.0301 (3 cents) from $0.37241 per kWh to $0.34235 per kWh effective September 1, 2022.
The FAC is one of the two components that make up the price of the electric kWh CUC used to buy fuel. The second component is the CUC base rate which is used to finance operations, projects and debt service. This base rate has not been increased since April 17, 2014.
CUC is required, pursuant to an order issued by the Commonwealth Public Utilities Commission, to adjust, up or down, the FAC transmission rate when Platts Singapore’s average monthly pricing provided by Mobil equals or exceeds one 4.5% deviation from the average cost per gallon of fuel used in the calculation of the current FCC rate.
CUC first instituted the Levelized Energy Adjustment Clause or LEAC in 2009 to recover fuel and fuel-related costs, a system also used by electric providers in Guam and the US Virgin Islands. In May 2015, the CPUC authorized the CUC to change the name from LEAC to FAC in order to provide customers with a more accurate description of the electricity tariff.
The Commonwealth Utilities Corporation is an autonomous non-profit CNMI government agency that provides electricity, water and sewage services in Saipan, Tinian and Rota.