The Commonwealth Utilities Corp. is asking the Commonwealth Public Utilities Commission to lift the cap on its Fuel Adjustment Charge and allow the rate to rise to 44 cents per kilowatt-hour, saying fuel prices have doubled and the utility can no longer absorb the increase.
With monthly fuel costs projected to jump from $4.2 million to more than $8.2 million, CUC officials warn the utility faces a $4 million shortfall and could run out of cash by June.
CUC filed its petition after being notified of a sharp spike in global oil prices, which the utility says has pushed fuel costs far beyond what the current CPUC‑approved cap of 24.5 cents can cover. Executive Director Kevin Watson said the situation is urgent and that CUC is awaiting a CPUC meeting to consider the request.
The FAC portion of customers’ bills pays for fuel and fuel‑related expenses. The base rate—which supports staffing, operations, projects and debt obligations—has not increased since April 2014.
Chief financial officer Betty Terlaje said the surge in fuel prices has created a funding gap too large for the utility to manage under existing rates. With only $12 million in cash on hand, already committed to payroll, fuel purchases and other obligations, she said CUC could exhaust its available funds by early summer.
Board chair Allen Perez said CUC has briefed Gov. David M. Apatang and other leaders, noting that load shedding is being discussed but would reduce both fuel use and revenue. Board member Simon Sanchez urged approval of the FAC increase, calling outages a last resort that would also disrupt water service.
CUC officials said they are exploring federal assistance, extended payment terms with fuel suppliers and short‑term financing while awaiting CPUC action.
