CUC FAC tariff freeze lifted after reconciliation filing

The Commonwealth Public Utilities Commission has lifted the freeze on the Fuel Adjustment Charge tariff following the Commonwealth Utilities Corp.’s submission of its reconciliation report, with the order signed by Commission chair James S. Sirok.

In the order, the CPUC said it “considers, determines, and makes rulings on a consideration for regulatory action related to the electric division” of CUC, specifically the lifting of the FAC tariff freeze imposed last year.

The freeze stemmed from a March 6, 2025 order that stabilized the FAC tariff “until the completion and filing of a final FAC Reconciliation Report” by CUC after regulators raised concerns that FAC collections had not been reconciled “despite CUC having been requested to do so by the Commission on several occasions.”

CUC later filed its reconciliation report on March 10, 2026, identified as the “Fuel Adjustment Charge (‘FAC’) Reconciliation Report for October 1, 2011-September 30, 2025.”

Following that filing, CPUC ordered that “the freeze of the FAC tariff rate…shall be lifted effective March 15, 2026.”

The order added that if future fuel cost calculations push the FAC rate above $0.24500 per kWh, CUC “MUST first file a request for approval of such FAC tariff rate with the Commission prior to putting such FAC tariff rate into effect.”

CPUC said it “reserves its continuing jurisdiction over this matter.”

The move comes as CUC has been under-recovering fuel costs used to generate electricity, with the current fuel adjustment charge set below the level needed to reflect actual fuel prices.

The shortfall has been accumulating over several months and is being absorbed by the utility’s operations, raising concerns about cash flow and the potential for larger rate impacts on consumers once adjustments are made.

Officials and consultants have also warned that continued volatility in global fuel markets could push costs higher, adding pressure on the utility’s already limited financial reserves.