The CNMI’s Commonwealth Utilities Corporation (CUC) approved a sharp increase in its fuel surcharge driven by soaring global diesel prices linked to the ongoing conflict in the Middle East.
Photo: Quin Tauetau
Still reeling from the devastation of Super Typhoon Sinlaku, the Commonwealth of the Northern Mariana Islands (CNMI) could soon face the highest electricity prices in the United States and its territories.
This comes after the CNMI’s Commonwealth Utilities Corporation (CUC) approved a sharp increase in its fuel surcharge driven by soaring global diesel prices linked to the ongoing conflict in the Middle East.
The Commonwealth Public Utilities Commission on Friday approved CUC’s petition to raise the Fuel Adjustment Charge (FAC) from 24.5 cents per kilowatt-hour to 44.489 cents per kilowatt-hour effective 15 May.
CUC warned that if global fuel prices continue to rise, the FAC for May could climb even higher to 60.481 cents per kilowatt-hour – and that figure does not include the utility’s base rate.
The FAC is used exclusively to recover fuel and fuel-related costs and reflects the sharp increase in ultra-low sulfur diesel prices in April, which CUC said doubled compared to March.
The dramatic increase has intensified fears across the CNMI about affordability, economic recovery, and the territory’s long-delayed transition to renewable energy.
Former lawmaker and community advocate Ed Propst described the situation as “more than a utility issue,” calling it “a full-blown economic emergency.”
“We are talking about islands where many people are already living paycheck to paycheck, where the federal minimum wage remains only US$7.25 an hour, and where small businesses are still struggling to recover from Super Typhoon Sinlaku, inflation, rising food costs, and ongoing economic instability,” Propst said in a public statement.
He warned that residents could soon face impossible financial choices.
“Families may be forced to choose between paying the power bill or buying groceries. Small businesses could cut employees, reduce operating hours, or shut down entirely,” he said.
Propst questioned why the CNMI remains heavily dependent on diesel generation despite renewable energy mandates established nearly two decades ago under Public Law 15-23, which set a target of 50 percent renewable energy generation by 2030.
“Yet here we are in 2026, still overwhelmingly dependent on antiquated diesel generators and vulnerable to global oil prices,” he said.
He also called for greater federal involvement, arguing that the CNMI’s strategic importance to the United States should justify stronger infrastructure investment and energy assistance.
“The CNMI needs a long-term energy stabilisation strategy supported by federal partners,” Propst said, citing the need for solar projects, battery storage, microgrids, and modernisation of aging generation systems.
The islands are still recovering from widespread infrastructure damage caused by Super Typhoon Sinlaku, which further exposed vulnerabilities in the CNMI’s aging power grid.
CUC noted that its base rate has not increased since 2014 and said the fuel surcharge reflects international fuel market conditions beyond the utility’s control.
Still, residents and businesses now face the prospect of some of the highest power costs anywhere under US jurisdiction at a time when the local economy remains fragile.
