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CUC: Falling fuel prices result in decrease of Fuel Adjustment  Charge

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(CUC) —  The  Commonwealth   Utilities    Corp. is  pleased   to  announce  that  the  Fuel   Adjustment   Charge  or FAC  will  be  decreased   to $0.11165  per  kWh  effective  October   1, 2020.

CUC was notified   by Mobil   Oil  Mariana  Islands,  Inc. that there has been a decrease  in the average international    fuel prices  which will affect the FAC.   As a result,  the current  FAC rate of $0.12397 per kWh will decrease  to $0.11165    per kWh.

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%  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 U.S. 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.

Although    the   FAC  rate   will   decrease,     CUC   encourages    its   consumers   to  practice   energy conservation.

November 2020 pssnewsletter

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