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CUC: Fuel Adjustment Charge remains the same

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(CUC) —  The  Commonwealth    Utilities   Corp. announces  that the Fuel  Adjustment   Charge  or FAC  remains  at $0.11165 per kWh  for the month of November.

Although  there has been a slight decrease in the Mean of Platts Singapore  monthly  pricing from October 2020 to November  2020 as indicated  by Mobil  Oil Mariana  Islands  Inc.,  the decrease did not equal or exceed  a 4.5%  differential   of the average  per gallon cost of fuel.

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 F AC rate.

CUC first instituted the Levelized  Energy  Adjustment  Clause  in 2009 to recover  fuel and fuel  related costs,  a system also  used by power providers  on 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.

CUC   is  a  non-profit   autonomous   agency   of  the  CNMI government   which  provides   electric   power,  water,   and  wastewater   services   to Saipan,  Tinian,   and Rota. 

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