Lawmaker proposes rate scale for CUC

House Minority Leader Arnold I. Palacios is proposing to set by legislation a lower rate schedule for the Commonwealth Utilities Corp.

Palacios, along with five other lawmakers, introduced Friday House Bill 15-193, which seeks to establish “reasonable” electric charges and rates for CUC.

If enacted, the bill would supersede the rates adopted by CUC on Oct. 27, 2006.

One of the proposed changes is the replacement of CUC’s four-tier rate scale for residential customers with a two-tier schedule. Currently, households are assessed electric non-fuel rates of 1.6 cents per kwh for the first 500 kwh of electricity consumed, 6.6 cents for the next 500 kwh, 8.6 cents for the succeeding 1,000 kwh, and 12.7 cents for electricity used beyond 2,000 kwh. According to the proposed legislation, residential customers should pay 2.4 cents for the first 500 kwh, and 6.4 cents for anything beyond that.

The bill’s sponsors also want electric rates to be the same for businesses and the government. Currently, non-fuel rates are 8.6 cents per kwh for commercial customers and 9.1 cents per kwh for the government. H.B. 15-193 would make this 7.7 cents for both businesses and government offices.

Furthermore, the bill would lower the non-fuel rate for non-conforming load from 22.2 cents to 21 cents per kwh.

H.B. 15-193 would also set electric fuel rates at 18.6 cents per kwh for all types of customers. This is 2 cents lower than CUC’s electric fuel rate for the month of November.

However, the bill would continue to allow for the electric fuel rates to fluctuate depending on the actual cost of fuel.

The proposed law would also keep the monthly customer charges at $5.60 for residential customers, $7.67 for businesses and government, and $56 for non-conforming load.

Any proposed increase of the electric charges and rates by CUC or any privately owned or operated public utility should be reviewed and approved by the future Public Utilities Commission, the bill states.

The bill’s author said that the current CUC rates and charges are exorbitant and have proven to be detrimental to the CNMI community and economy.

“Many of our residents earn wages below the United States poverty level and cannot afford to pay their increased power bill. Many residents, especially the indigent and the elderly, have been subjected to disconnection of electric service in their homes because they are unable to pay their power bills as well as other monthly costs and expenses. Even businesses cannot afford to pay their monthly power bills,” states a portion of the bill.