CUC keeps hopes up on fuel surcharge fee

The Commonwealth Utilities Corp. is still hoping that Gov. Juan N. Babauta will change his mind and sign the emergency fuel surcharge regulation.

CUC chair Frank Q. Guerrero reported yesterday that utility firm’s comptroller provided Babauta’s legal counsel, Steve Newman, all the information the governor had requested regarding the proposed fuel surcharge.

“I think we provided enough information to Mr. Newman. We heard Newman discussed everything with him this morning. Hopefully, we’ll hear from the governor before the board meeting on Friday,” said Guerrero.

He expressed belief that, contrary to Babauta’s earlier statement, the fuel surcharge regulation will not take effect on Feb. 25, without the governor’s concurrence.

Given the required 30-day publication and public comment period, it would take about two more months before CUC could implement the fuel surcharge, if the regulation was to be adopted under the normal procedure.

“The Attorney General’s Office has rules we have to follow regarding the adoption of regulations. If the governor does not sign the emergency regulations, we would have to do the public hearings all over again. The preparation and all of that would take another two months,” Guerrero said. “Time is of the essence to us. It’s precisely the reason we wanted to adopt the fuel surcharge regulation under emergency procedure.”

Governor Babauta disapproved on Monday the proposed emergency regulation allowing CUC to assess a 1.5-cent fuel surcharge for all utility customers.

He cited two main reasons for his rejection of the measure: lack of accurate analysis by the Commonwealth Utilities Corp. of the actual cost it incurs in producing electricity; and failure of the utility firm to implement effective cost-savings measures.

The governor said, though, that the regulation would become effective without his signature.

“I acknowledge, however, that although I have decided not to sign the proposed emergency regulation at this time due to the fact that CUC has failed to provide me with sufficient information regarding the aforementioned concerns, the proposed regulation will become final without my concurrence effective 10 days after publication in the Commonwealth Register,” Babauta had told Guerrero in a letter.

He said the regulation takes effect on or about Feb. 25-a month after the CUC board’s majority voted to adopt the emergency regulations.

Despite this, the governor said he would still wait for CUC to provide his office with a final financial audit statement and rate study “that provides adequate legal and financial justification” for the amount of the fuel surcharge fee.