New Electricity Tariff for Main Island Announcement

ANNOUNCEMENT:

The YSPSC Board of Directors, after undertaking the requisite regulatory processes, and after having considered public comments and inputs from government stakeholders and based on the increased cost of operation due to inflation and fuel price volatility, have adopted a new electricity tariff for Yap Main Island. The new tariff will take effect on July 1, 2026.

Tariff Components:

There are 3 components to the new tariff as follows:

(1) a Variable Fuel Cost (VFC), which will change from month to month based on the price of fuel per kilowatt hour, (2) a fixed base rate partially accounting for Non-Fuel Costs (NFC), and (3) a Fixed Monthly Cost (FMC). The NFC, which will be billed based on the level of customer power usage, and the FMC, which will be a fixed amount payable once a month regardless of the level of customer power consumption, will be reflective of all the non-fuel costs of producing and distributing electricity.

*** VFC per kilowatt hour will be determined from month to month based on the cost of fuel per gallon, the amount of fuel used to produce power, the total amount of kWh billed, and the amount of renewable energy produced for each month. The bills issued each month and the receipts for cash power purchases, will display the breakdown of the rates for the current billing month and for the ensuing month.

FMC Charges

FMC will be charged only once a month.

For residential customers, there will be one FMC charge of $5 regardless of whether their level of power usage is under Tier 1, Tier 2, or both. Likewise, government customers will be charged the FMC rate of $40 per month regardless of consumption level.

For commercial customers, the FMC monthly charge will either be $20 or $40, depending on load average. Commercial customers with a 3-month rolling average of 300 kWh usage or less will be charged the Tier 1 FMC rate of $20 a month. Commercial customers with a 3-month rolling consumption average greater than 300 kWh will be charged the Tier 2 FMC rate of $40 a month.

When a commercial customer, under the Tier 1 FMC monthly rate of $20, increases his 3-month rolling consumption average to over 300 kWh, his FMC will be moved to the Tier 2 monthly rate of $40. Conversely, when a commercial customer, under the Tier 2 FMC monthly rate of $40, decreases his 3-month rolling usage average to 300 kWh or less, his FMC will be shifted down to the Tier 1 monthly rate of $20.

Bill Calculations

For post-paid customers, monthly bills will be calculated as follows: [(NFC + VFC) x kWh] +FMC. For prepaid customers, the same formula will be applied for the first purchase of each month. Calculation for each subsequent cash power purchase in the same month will be:

(NFC + VFC) x kWh. Where no cash power purchase is made in any given month, the FMC for that month will be carried over and added to the FMC for the next month.

Other Customer Classifications:

Non-revenue-generating facilities that are community-owned will be classified under the Residential Category. Public places of worship will be classified under the Residential Category. Multilateral organizations and governments, including foreign governments, and their instrumentalities will be classified under the Government Category. Other customers that do not clearly fall under any Category will be classified under the Commercial Category.

YSPSC retains the right to change customer classification and re-categorize any customer at any time due to changes in the character or nature of the customer.

Meter Type Switch:

Effective July 1, 2026, all commercial customers must be on post-paid (conventional) meters. Any commercial customer presently using prepaid meters will be required to switch to a post-paid meter. This is because YSPSC’s prepaid billing software cannot automatically shift customers between the Commercial Tier 1 and Tier 2 FMC rates as their A 3-month rolling load average may be required. And since prepaid tokens are often purchased online, changing FMC rates cannot be done manually either at the time of purchase.

Reconnection Fee

Effective July 1, 2026, the reconnection fee for electricity accounts that are disconnected for delinquency will be increased from $50 to $125. Reconnection fee for accounts that are not delinquent, but are disconnected by request, will remain at $40.

Other Tariff Terms Remain the Same

The other terms of the current Yap Main Island electricity tariff that are not explained here as changing effective July 1, 2026, remain the same. The electricity tariffs in the outer islands are unaffected by these tariff changes.

YSPSC’s customer service office may be contacted for further clarification. Thank you.