House wants a stop to CUC’s surcharge fee

The House of Representatives has passed two different measures that essentially aim to get rid of the Commonwealth Utilities Corp. fuel surcharge fee, currently set at 3.5 cents per kilowatt-hour.

Vice Speaker Timothy P. Villagomez introduced House Bill 14-343 on Friday, which seeks to repeal 4 CMC section 8148 (b), the provision that authorizes the CUC board to impose the fuel surcharge fee.

The bill was voted unanimously on the same day.

In House Resolution 14-130, Rep. Heinz S. Hofschneider wants Gov. Juan N. Babauta to exert all efforts during the current state of emergency on utilities “to rescind or reduce the amount of the fuel surcharge fee imposed by CUC.”

The lawmaker said that Babauta’s declaration of emergency on May 19 would enable him “to utilize all available resources and reprogram funds, with approval of the Legislature, necessary to address the problem with power.”

The CUC imposed a 1.5-cent surcharge fee effective April this year, reportedly due to lack of funds to pay for the increasing cost of fuel.

Last month, CUC increased the rate to 3.5 cents, the maximum rate allowed by the law.

“The fuel surcharge fee continues to be imposed, notwithstanding the governor’s state of emergency declaration and the people of Commonwealth are greatly suffering because many cannot afford to pay any additional cost of power, and the burden of the cost of fuel must be alleviated,” said Hofschneider.

The resolution was adopted on Friday.

House leadership spokesman Charles Reyes Jr. said yesterday that Villagomez’ bill came following complaints from consumers about the surcharge fee.

“People are feeling the heat. It’s a way to alleviate the people’s suffering,” he said.

Villagomez has been opposed to the imposition of a fuel surcharge fee on residential and commercial consumers. He had previously proposed three separate alternatives to the surcharge fee: an increase in the government’s utility rate, the use of Compact Impact funds, and the waiver of CUC’s massive debt to the Commonwealth Development Authority.

He also called on the governor to reprogram funds to pay for the central government’s overdue CUC bills, which reportedly amounts to more than $20 million in potential CUC accounts receivable.

Villagomez, a former CUC director and now chairman of the House Committee on Public Utilities, Transportation and Communications, sees the government’s huge debt to CUC as a primary cause of the fuel surcharge fee. (Liberty Dones)