Villagomez calls on voters to renew FSF opposition

Sensing a possible change in legislative sentiment, Vice Speaker Timothy P. Villagomez is calling on all registered voters to urge their elected representatives to support House Bill 14-343, a bill currently before the governor’s office. The bill, authored by Villagomez, proposes to repeal the law allowing the CUC fuel surcharge fee to exist.

Gov. Juan N. Babauta has previously expressed his interest in vetoing the fuel surcharge repeal, but members of the Legislature have indicated that they might be willing to override the administration’s veto.

Last week, however, Rep. Arnold I. Palacios, a Republican from Saipan’s third election district, expressed support for the unpopular CUC fuel surcharge fee in a Saipan Tribune interview.

Palacios suggested that the Legislature might have acted in “haste” by approving House Bill 14-343, which proposes to repeal the surcharge fee.

“Inasmuch as we want the fuel surcharge fee to disappear, the reality of oil prices is such that we really must be prudent and face this,” said Palacios, who is running with the Babauta-Benavente administration under the Republican Party.

Palacios echoed the administration’s argument that the CNMI has to either accept the fuel surcharge or face blackouts. “The choice now is whether we want to experience Commonwealth-wide blackouts or partially cover the fuel cost through this fuel surcharge,” said Palacios.

Villagomez fears that the administration’s allies in the Legislature might be closing ranks to support the fuel surcharge fee in the wake of the proposed repeal.

A prominent member of the Saipan Chamber of Commerce also recently rescinded his opposition to the CUC fuel surcharge fee, saying, “We have no choice but to bite the bullet.”

Villagomez continues to oppose the CUC fuel surcharge fee, urging all CNMI voters to strongly register their opposition to the continued implementation of the surcharge fee, which he says is “too much.”

CUC initially imposed a 1.5-cent fuel surcharge fee per kilowatt-hour but quickly raised the rate to 3.5 cents per kilowatt-hour within a few weeks.

“CUC has not always been financially strong,” said Villagomez, “but it at least was always able to avoid a fuel surcharge fee in the past.”

“The fact that it has come to this point is a sorry reflection of a very pronounced management failure on the part of this administration,” said Villagomez. “There is no money because the administration has not spent our money wisely and has consistently failed to attract new industries, new investments and new businesses to bring in more revenues in the wake of the [World Trade Organization’s] effect on our local apparel industry.”

Although the administration faults rising energy costs for the fuel surcharge fee, Villagomez attributes the fuel surcharge fee to the administration’s persistent failure to pay its utility bills.

Villagomez, who is chair of the House Committee on Public Utilities, Transportation & Communications, is a former CUC executive director. (PR)