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Senate OKs surcharge fee repeal
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Posted on Jun 15 2005
The Senate agreed yesterday with the House of Representatives’ passage of a bill that repeals the law authorizing the Commonwealth Utilities Corp. to impose a fuel surcharge fee.
The bill passed on seven yes votes. Two senators—Rota Sen. Diego Songao and Tinian Sen. Joseph Mendiola—abstained.
The two lawmakers said repealing that particular portion of the law—4 CMC section8148 (b)—would not solve CUC’s problems.
“The problem with CUC is its finances. Unless you resolve this, there’s no way you can effectively address the root cause of the power crisis we’re in,” said Mendiola.
He said getting rid of the surcharge fee “only addresses the consumer side” of the problem.
“You’re not taking care of the whole issue,” he added.
The Senate, which held a session and adjourned yesterday morning, reconvened up to past 1pm yesterday to act on the proposed repeal of the surcharge fee provision, as introduced by House Vice Speaker Timothy P. Villagomez in House Bill 14-343. Villagomez was present during the Senate’s discussion of his bill yesterday.
The existing law currently allows the CUC board of directors to impose a fuel surcharge of up to 3.5 cents per kilowatt per hour.
The House unanimously voted on Villagomez proposal last Friday.
Villagomez, a former CUC executive and now chair of the House Committee on Public Utilities, Transportation, and Communications, has been opposed to the imposition of a fuel surcharge fee on residential and commercial consumers.
He earlier proposed that, instead of imposing the surcharge fee, the government should just pay a higher utility rate, use Compact Impact funds, or grant a waiver to CUC’s massive debt with the Commonwealth Development Authority.
The lawmaker also called on the governor to reprogram funds to pay for the central government’s overdue CUC bills, which reportedly amounts to more than $20 million in potential CUC account receivables.
Villagomez see the government’s huge debt to CUC as the primary cause of the fuel surcharge fee.
