CUC: Show me the money

The government’s proposal to provide legislated subsidy for Saipan households, in order to spare them from the fuel surcharge, drew mixed reactions yesterday from Commonwealth Utilities Corp.

CUC chair Francisco Q. Guerrero said the board will make a decision next week on the planned implementation of the fuel surcharge, depending on how the appropriation measure for CUC’s fuel costs would be received in the Legislature.

On the other hand, CUC comptroller Sohale Samari expressed doubt that the government could produce the amount needed to subsidize residential customers.

The CUC board of directors met yesterday, but failed to discuss all the items on the agenda, including the proposed fuel surcharge. The board members agreed to re-convene at 10am Wednesday to continue the meeting.

However, Guerrero reported to the board about the meeting he and some management officials had with acting Gov. Diego T. Benavente and Vice Speaker Timothy Villagomez yesterday morning.

In an interview, Guerrero said CUC is now faced with different options on how to approach the fuel surcharge. These choices include sparing households from the adjustment, lowering the amount for residential, government and/or commercial customers, or implementing an across-the-board fuel surcharge of 3.5 cents per kwh in December.

“If the Legislature could come up with additional funds to subsidize the residents who will be affected by the 3.5 cents, it will be good. We will be decide what to do maybe next week. We will consider the government’s plea, provided that the appropriation comes out,” Guerrero said.

He maintained that a tax credit for customers using less than 2,001 kwh per month is another option that the Legislature should consider. He noted that it would reward people who conserve energy, and by doing so, help CUC reduce its fuel costs for power generation.

Samari also made some comments on the government’s proposal in his report to the CUC board.

He said that neither Benavente nor Villagomez could say where they plan to get the money to provide the subsidy, in case CUC agrees with their suggestion to not impose any fuel surcharge in the residential category and to lower the amount for government and commercial customers.

Samari noted that based on the various scenarios discussed during the meeting, the amount of subsidy would range between $227,000 and $1 million.

“So basically, people are trying to put us through the all motions, and we ask them to show us the money…they [turn out to be] empty-handed,” he said.

He reiterated that CUC will face a huge shortfall—the amount of which he declined to make public—by January if the fuel surcharge does not push through. “[The fuel surcharge] is our only option right now,” he said.