FAC Increases Due to Rising Global Fuel Prices as Conflict in the Middle East Continues

(Friday, May 15, 2026 - Saipan, CNMI) - The Commonwealth Utilities Corporation (CUC) announces that the Fuel Adjustment Charge (FAC) will increase from $0.24500 per kilowatt-hour (kWh) to $0.44489 per kWh, effective May 15, 2026.

During today's Business Meeting, the Commonwealth Public Utilities Commission (CPUC) approved CUC's petition, which was filed on March 31, 2026, to increase the FAC to $0.44489 per kWh. The $0.44489 per kWh FAC is reflective of global Ultra-Low Sulfur (ULS) diesel fuel prices for April 2026, which doubled from what they were in March 2026.

Due to the continued rise in global fuel prices as a result of the ongoing conflict in the Middle East, the calculated FAC for May 2026 is $0.60481 per kWh. At this time, however, that FAC has not yet been petitioned to the CPUC.

ULS diesel fuel is fundamentally different from the gasoline used in most passenger cars.

While both are refined from crude oil, they have different chemical compositions, densities, and methods of combustion.

The FAC is one of two components of CUC's electric charge and is used exclusively to recover fuel and fuel-related costs. The second component, the CUC Base Rate, has not increased since April 2014 and funds personnel, operations, capital projects, debt service, and other non-fuel-related expenses.