House minority seeks funds for CUC, wants surcharge reimbursed

The House minority bloc led by Rep. David M. Apatang pre-filed two separate bills yesterday seeking to appropriate a total of $20 million for the Commonwealth Utilities Corp.’s fuel expenses in fiscal years 2005 and 2006.

At the same time, the measures aim to mandate the CUC “to reimburse all customers for the fuel surcharge fee of 3.5 cents per kwh that they have previously paid CUC.”

The fuel surcharge, as approved by the CUC board of directors, took effect in spring this year.

The group’s House Bill 14-360 aims to make a first partial appropriation of $10 million to CUC during the current fiscal year. Its twin measure, H.B. 14-361, aims to give the second installment of $10 million to the utility firm in FY 2006 “to cover the fuel cost increase and the fuel surcharge fee.”

Apatang, an independent candidate for the lieutenant gubernatorial position in tandem with Rep. Heinz S. Hofschneider for this year’s election, said the fuel surcharge fee could have been avoided if Gov. Juan N. Babauta, who is seeking re-election, paid the government’s debt to CUC.

Apatang acknowledged that the government owes CUC some $13 million to $18 million for power consumption.

“The fuel surcharge fee would not be necessary if the CNMI government paid its obligation to CUC in a timely manner. …Upon declaring a state of emergency with respect to CUC and its ability to provide service, the governor had the power to reprogram the funds necessary to pay the government’s outstanding obligation with CUC, thereby avoiding the implementation of the fuel surcharge fee,” said Apatang.

The Babauta administration is contesting its CUC bill in court, claiming that the utility firm has actually been overcharging the government.

The administration had recently noted that, despite what it described as a dismal annual appropriation from the Legislature ($5 million), it still managed to pay CUC over $32 million from 2002 to the present.

Following the governor’s declaration of a state of emergency in May, the administration said it has reprogrammed $5.1 million for CUC.

In the bills, lawmakers cited that the cost of fuel has tremendously increased in the past year and continues to increase worldwide. They said that CUC is unable to make its monthly fuel payment to Mobil Oil Marianas “due to the fuel cost increase and lack of available funds.”

The bills source the $20 million from the General Fund, which shall be without fiscal year limitation.

The bills give the expenditure authority to the secretary of the Department of Finance.

As of yesterday noon, the bills were also endorsed by minority leader Arnold I. Palacios and Jesus Attao.