‘Surcharge to devastate Rota’

Citing high shipping costs, Rota residents fear that the proposed 3.5 cent fuel surcharge would further devastate the island economy, Sen. Luis P. Crisostimo said.

Crisostimo, who attended yesterday’s public hearing conducted by the Commonwealth Utilities Corp. on Rota, said that people were most concerned about the fee’s impact on shipping and consumer goods.

“Rota is a remote area. They struggle to have access to services that are extremely [expensive]. Putting a 3.5 cent surcharge will devastate the economy. They say that even if it’s only 1 cent, it’s going to be a major impact on the goods due to increased shipping costs, given their location,” said the senator.

Crisostimo chairs the Senate Committee on Resources, Economic Development and Programs.

The CUC held its public hearing on the issue at Rota’s courthouse Friday night in efforts to educate the people on the proposed fuel surcharge.

CUC earlier published draft regulations that would allow for the implementation of the fuel surcharge—up to 3.5 cent per kilowatt hour—beginning December.

For 30 days starting last Friday, CUC will receive public comments on the proposed increase that will be added to the basic rate for electric service. This allows the CUC to pass on to customers the increased cost of fuel.

CUC said the surcharge will be based only on fuel costs and will fluctuate with changes in fuel costs.

“Any over-recovery will result in credits to the customers,” CUC said in a public notice.

According to the proposal, the initial surcharge should not exceed 3.5 cents per kwh and should take effect for the remainder of the current calendar year in which the regulation becomes effective.

The draft regulations require that the fuel costs, which are subject to cost recovery, include only production fuel for power generation.

CUC said that each costumer’s monthly bill would show separately the base electric rate charge and the fuel charge adjustment.

CUC currently charges 11 cents per kwh for residential customers and 16 cents per kwh for commercial users.

Meantime, CUC will hold a similar public hearing at the Tinian Elementary School on Nov. 8. On Saipan, the public hearing will be held at 7pm, Nov. 10, at the Multi-Purpose Center.