‘No appropriation, no surcharge repeal’

Saying that keeping the lights on is non-negotiable, Gov. Juan N. Babauta has no choice but to disapprove today a bill that proposes to repeal the fuel surcharge law, Press Secretary Peter A. Callaghan said yesterday.

“The Legislature has not appropriated funds. Now, it’s either we keep it [fuel surcharge] or turn the lights off. That’s the choice we’re facing. If we can’t buy fuel, the generators will stop running,” he said.

The government said that the existing 3.5 cents per kilowatt hour fuel surcharge gives CUC $1 million a month, which the Commonwealth Utilities Corp. uses to buy fuel. CUC said it spends $2 million to $2.4 million a month for fuel.

Callaghan conceded that the administration is aware that keeping the fuel surcharge is an unpopular move, especially in view of the Nov. 5 general elections. Babauta is seeking re-election under the Republican Party. The fuel surcharge repeal bill is authored by Vice Speaker Timothy P. Villagomez, who is running as lieutenant governor under the opposition Covenant Party.

“But keeping the lights on in the Commonwealth is not a popularity contest. It’s taking leadership and responsibility. That’s what he [governor] is doing,” said Callaghan.

Further, Callaghan said that the rolling blackouts and the repeal of fuel surcharge are two separate issues. “Don’t mix up these two. Maintenance of the engines is separate from fuel cost,” he said.

Babauta was expected to transmit to the Legislature yesterday a comprehensive report on his state of emergency. Babauta declared a state of disaster emergency on May 19 amid the recurring outages that stemmed primarily from the lack of a stable fuel supply. The emergency authority gave the governor control over the CUC.

The House leadership earlier expressed fears of secret dealings during the emergency period. It complained of the lack of a comprehensive report on the issue and the failure of the administration to notify the Legislature of the governor’s decision to further extend the emergency declaration for another 30 days last July 19.

At the same time, the House leadership cited the administration’s “lack of transparency” on the power privatization program.

Villagomez has issued a subpoena to governor’s consultant Ramon Guerrero, asking the latter to report on the program on August 1. Guerrero was hired during the emergency declaration to rehabilitate Power Plant 2 in Lower Base.

The administration said that three of the six-engine Power Plant 2 are now operating following Guerrero’s entry. Power Plant 2 serves as backup in case engines at the adjacent Power Plant 1 break down.

Power Plant 1, under the CUC’s privatization program, would be overhauled, maintained, and operated by the winning proposer. A privatization contract will be awarded to a private company in less than two months, authorities said.