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CUC: Rise in fuel prices result in fuel adjustment charge increase

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(CUC) — The Commonwealth   Utilities  Corp. has been  notified  by Mobil  Oil  Mariana  Islands   Inc.  that there has been  an increase  in the average international   fuel prices  which will affect the Fuel  Adjustment  Charge  or FAC.

As a result,   the current FAC rate of$0.08323    per kWh has increased  to $0.11330 per kWh effective July 1, 2020. Residential   customers  who use 500 kWh of power per month will pay approximately $15.04    more in their  monthly  billing.

The FAC is  one of two components  that make  up the CUC electric  kWh rate  which  is  used to purchase  fuel.   The second  component   is  the CUC base  rate, which  is  used to fund  operations, projects,   and debt service.    This base  rate has not been increased  since April   17,  2014.

CUC  is  required,  pursuant  to an order  previously   issued   by the Commonwealth   Public  Utilities Commission,  to adjust (up or down)  the FAC pass-through   rate when the Mean of Platts Singapore  monthly  pricing equals  or exceeds  a 4.5  percent  differential  of the average  per gallon  cost of fuel  used in the calculation   of the current  FAC 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 power  providers  in Guam and the Virgin  Islands.    

In May 2015, the CPUC  authorized   CUC to change  the name  of LEAC  to FAC  to provide  customers  a more accurate  description  of the electric   rate.

CUC encourages  its consumers  to practice  energy  conservation.

 

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