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Muna insists new power rates are legitimate
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Posted on Jun 04 2008
The Commonwealth Utilities Corp.’s top official says that the agency has managed to convince lawmakers that the increased power rates have enough basis and are therefore legitimate.
CUC executive director Antonio S. Muna said that they sat down with the Saipan legislative delegation’s Committee on Public Utilities, Transportation and Communications and had some extensive conversations with the members so they would understand what CUC is going through and how the power rates are being computed.
“So I feel at this point there’s understanding that what we’re doing is legitimate. That’s my feeling,” the executive director told the media in a news briefing.
He said he feels that PUTC members do understand where the utility agency is coming from on the electric rates.
Muna said the rates that CUC implemented when Public Law 16-2 was put into effect were based on a rate structure that has been in the books since October 2006.
“So this is nothing new. We didn’t reinvent how we are going to come up with the rates,” he pointed out.
Residential customers first experienced the lowest electric rates in October 2007 when Public Law 15-94 took effect, putting a cap on power rates at 17.6 cents per kilowatt-hour.
Public Law 16-2, signed by Gov. Benigno Fitial last month, however, suspended the October 2007 rollback of power rates. This resulted in the return to high power rates.
Muna said PUTC did not contest the new rates because it’s been in the book since October 2006.
“If we did change the methodology from what was in the book, then PUTC would challenge it,” he added.
CUC doubled its electric fuel rates in May and increased its rates further by 3 cents per kilowatt hour this month.
