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‘What’s holding back OK on surcharge fee?’
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Posted on Feb 03 2005
Commonwealth Utilities Corp. chair Francisco Q. Guerrero stressed yesterday that it is critical for Gov. Juan N. Babauta to sign the fuel surcharge regulations immediately.
Guerrero said he has been trying to set a meeting with the governor to discuss the emergency regulations, which the CUC board of directors adopted on Jan. 25.
“I want to find out what’s holding up his concurrence. I have sent him a notice of our financial situation. I have put him on alert as to how crucial the fuel surcharge is to our operations,” he said.
Guerrero reported that CUC still owes Mobil Marianas for fuel deliveries made from November 2004 to January 2005. The utility firm has now exceeded its $10-million credit limit with the fuel supplier.
Yesterday, Mobil again delivered fuel for the power plants. CUC is due to make a $3.5 million payment for this delivery on Feb. 15.
“Our obligations are piling up. We want to try to stay within the $10-million credit limit, and we need the fuel surcharge in place to be able to do that,” Guerrero said.
Mobil has already raised concern about CUC’s failure to stay within the credit limit.
“Mobil is concerned about the developments which have placed CUC in a grave financial position. [Due] to non-payment of government bills to CUC and delays in implementation of a surcharge, CUC has a large deficit and without immediate action to correct the situation. This will affect CUC’s payments to Mobil.
“We remain very concerned and will continue to work with CUC to the extent we are able, but stress the importance of CUC’s continued ability to stay within the established credit extension amounts and make timely payments,” Mobil commercial manager Frances Diaz said in a recent letter to CUC.
The CUC board of directors adopted the fuel surcharge regulations under emergency procedures on Jan. 25. The new regulations will only become effective upon the governor’s concurrence.
Earlier this week, however, Babauta said he was still undecided whether or not to approve surcharge, which was set at 1.5 cents per kwh for all types of customers.
