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Chamber supports governor’s veto
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Posted on Aug 02 2005
While the Legislature is poised to reverse the governor’s decision, the Saipan Chamber of Commerce says it supports Gov. Juan N. Babauta’s veto of the fuel surcharge repeal bill.
“SCC fully supports the governor’s [move] because the cost of fuel has doubled. The expense is real and the lights need to remain on,” said SCC president Alex Sablan.
He cited, though, Commonwealth Utilities Corp.’s piece on the need “to fix real systemic problems that would create revenue and stop the leaks or money reprogrammed by the administration…”
“We’re told our people can do the overhaul job, they just need the parts,” he said.
Meantime, the House leadership said that it would hold a meeting to discuss the possibility of vetoing Babauta’s disapproval of House Bill 14-343.
The bill, authored by vice speaker Timothy P. Villagomez, aims to repeal the law that allows the CUC board to impose fuel surcharge up to 3.5 cents.
“We’ll be meeting to decide on our move,” said Villagomez.
Babauta disapproved the bill last Friday saying that the fee is needed amid rising costs of fuel.
He said the price has more than doubled.
At the same time, the governor said that he would reprogram $250,000 for low-income families through the CNMI Low Income Housing Energy Assistance Program “to offset their electric bills.”
He said that in addition to reprogramming of $5.1 million to the CUC Emergency Fuel Contingency Fund, he will give $250,000 to the Low Income Housing Energy Assistance Program, which currently provides energy assistance to 594 low-income families.
Program recipients would get “cash stipend” paid directly to CUC.
Babauta said CUC faces $12 million shortfall for fuel consumption amid the $16 million projected income from the surcharge.
CUC spends $6 million for about 3 million gallons of fuel every month.
He said that passing the bill would mean “Commonwealth-wide blackouts, killing our economy and leaving many households without water, lights, refrigeration, and all the other requirements of a decent life that electricity provides.”
