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House to act on fuel surcharge
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Posted on Aug 15 2005
The House of Representatives will hold a session tomorrow primarily to act on the Commonwealth Utilities Corp.’ 3.5 cent fuel surcharge—whether to remove it, subsidize it or increase the electricity rate instead.
Lawmakers from both the leadership and the minority bloc met yesterday in an executive meeting to address CUC concerns, particularly the fuel surcharge.
Following the meeting, Speaker Benigno R. Fitial ordered that a session be held tomorrow morning.
The House leadership is leaning toward endorsing the bill introduced by Vice Speaker Timothy P. Villagomez, which aims to raise CUC’s electricity rates in exchange for the removal of fuel surcharge and the write-off of the $45 million debt of the utility firm with the Commonwealth Development Authority.
House Bill 14-362 seeks to increase the electricity for residential and non-profit groups from 11 cents to 13 cents; commercial users from 16 cents to 18 cents; and government from 16 cents to 39 cents.
As proposed, the residential rate increase shall not apply to residential customers who use less than 2,001 kilowatt hour per month.
The government rate shall be reduced to 18 cents per kilowatt hour “upon the payment of its $18 million outstanding debt” with CUC.
The House minority bloc, meantime, espouses a bill that aims to provide subsidy to consumers.
Minority bloc leader Arnold I. Palacios said he will introduce the bill later today, which he said would bring relief to many families. He cautioned, though, that a certain group would not be happy about it. He declined to elaborate.
As drafted, he said the bill offers to subsidize or pay for the fuel surcharge of up to 2,000 kilowatt hour per household or $70 a month.
It is estimated that a household of four consumes an average of 2,000 kilowatt hour a month. This would mean paying a regular pay of a little over $200 plus surcharge.
Palacios said his measure aims to sequester or identify funds to subsidize CUC for the fuel surcharge. Palacios said other lawmakers from the minority bloc have other proposals to present during the session.
