Fuel surcharge fee now at 3.5 cents per kwh

Less than a month since the fuel surcharge regulation was adopted, the Commonwealth Utilities Corp. yesterday increased the fee to the maximum allowed rate of 3.5 cents per kwh of usage for all customers.

With a 4-2 vote, the CUC board of directors approved a resolution that would allow management to impose a 3.5-cent fuel surcharge on the customers’ April consumption. The 2-cent increase will reflect on the May billing.

Voting in favor of the resolution were CUC chair Francisco Q. Guerrero, vice chair Herman P. Sablan, secretary Rufina Miles, and member Laura Manglona.

Those who opposed the resolution were members Joe Torres and Velma Ann Palacios.

Allen Perez, the only other member of the CUC board, was absent from the meeting.

According to the resolution, CUC implemented a fuel surcharge of1.5 cents, to be added to customers’ bills for the March 2005 consumption.

The 1.5-cent rate was implemented pursuant to a board resolution that the CUC board adopted on Jan. 25, 2005 in relation to an emergency fuel surcharge regulation, which failed to become final after Gov. Juan N. Babauta declined to sign it.

Citing a report by CUC comptroller Sohale Samari, the board noted in the resolution that a fuel surcharge of 1.5 cents would not generate sufficient revenue to ensure CUC’s ability to pay for fuel costs.

The CUC board further pointed out that fuel costs continue to rise, causing a financial crisis for CUC “that threatens its ability to pay its fuel bill.”

“[I]ncreased revenues are necessary to allow CUC to pay for the fuel needed to provide electric service to its customers,” a portion of the resolution reads.

The fuel surcharge regulation, which took effect Feb. 28, 2005, will pass on to all CUC consumers any increases in fuel costs for the production of electricity.

Under the regulation, CUC may impose a fuel surcharge of up to 3.5 cents per kwh during the calendar year in which the regulation becomes effective.

For subsequent years, however, CUC may increase the surcharge rate by up to 2 cents per kwh for consumers using less than 2,001 kwh per month.

For consumers using more than 2000 kwh per month, the increase rate is unlimited.

Revenues generated from the fuel surcharge may be used for the purpose of fuel payments only, not for CUC’s operations.