Legislated power rate cut loses ground in Senate

The Senate Committee on Public Utilities, Transportation and Communications will scrap a proposed legislation seeking to bring down the cost of electricity on the island by an average of 25 percent due to opposition from the Tenorio administration.

“I’m not sure whether it will be feasible for us to pursue that route,” said Senate Vice President Thomas P. Villagomez, committee chair.

“We don’t have the support of the (Commonwealth Utilities Corporation) board, we don’t have the support of the administration and even some members of the House are not ready to support.”

A recommendation not to act on the measure offered by Sen. Edward U. Maratita will be handed over by the committee to the Senate, which means that it will no longer be entertained during the current Legislature.

“I don’t think it will be the right move for the Senate to go ahead and pass it,” Villagomez added.

Maratita has sought the cut in the electricity cost in the island, bringing down the rate for residential customers from 11 cents to 9 cents per kilowatt-hour, while 16 cents to 11 cents for business establishments.

He said the plan is in line with the decision of CUC to slash government power rate from 20 cents to 16 cents, in what the utility corporation stressed is intended to help the cash-strapped government at this time of worsening economic crisis.

Although the proposal was seen as a popular move, the Tenorio administration have opposed it because of potential serious consequences to the current set up of the government-owned utility firm.

CUC officials have warned against impact of the legislated rate reduction on its financial standing, saying this will only throw them back to government subsidy.

Gov. Pedro P. Tenorio has also cautioned the Legislature on the implication of the move to the constitutional mandate of the autonomous agency, which must maintain a sound financial record to be eligible for capital improvement project funds.

These positions by government officials have weighed heavily on committee’s recommendation since it is more than likely that the governor will veto the measure even if it passes both houses.

Maratita earlier has vowed to pursue the issue, saying he would ask that a public hearing be held on his proposal — an opportunity granted by CUC when it was deliberating on the reduced government power rate.