$70 surcharge subsidy for each family in NMI?

House minority bloc leader Arnold I. Palacios is proposing to raise the poker license fee by $4,000, with the money generated to be used to pay the fuel surcharge fee of up to 2,000 kilowatt hour per household in the CNMI.

In a pre-filed House Bill 14-366, Palacios seeks to hike the poker fee from the current $6,000 per machine to $10,000. There are 1,500 poker machines on Saipan and Rota.

“We want to use this additional revenue for the benefit of the people by earmarking the revenues derived from it specifically to offset the impact of the fuel surcharge fee,” said Palacios.

The proposal would translate to a $70 subsidy per family based on a 2000-kilowatt hour usage.

He said it is estimated that a family of four consumes 2,000 kilowatt hour a month.

Under the bill, the secretary of the Department of Finance shall deposit the additional revenues ($4,000) in a separate account in the general fund known as “Fuel Surcharge Fee Fund.”

This money shall be transferred to CUC, which shall then credit this to CUC residential customers who use less than 2001 kilowatt hour per month.

Palacios said the revenues that would be collected would be enough to subsidize a portion of the fuel surcharge.

He said that based on CUC data, residential users make up 35 percent of the projected fuel surcharge.

CUC expects to collect $12 million to $14 million a year from the 3.5 cents fuel surcharge.

The bill, however, wants to waive the additional fee for machines operated within casino premises, which is subject to the Tinian Casino Gaming Control Commission.

Palacios said he is confident that his bill would be supported by his colleagues in the House of Representatives during a session this morning.

“This is an alternative. It will address the issue. You see, we can’t just talk about it. We need to do something,” he said.

House Vice Speaker Timothy P. Villagomez said he welcomes Palacios bill. “Any solution to the problem we will pass,” he said.

Villagomez himself has a pending bill that seeks to raise CUC’s electricity rates in exchange for the removal of fuel surcharge.

House Bill 14-362, which is also up for discussion today, aims to increase the electricity for residential and non-profit groups from 11 cents to 13 cents; commercial users from 16 cents to 18 cents; and government from 16 cents to 39 cents.

As proposed, the residential rate increase shall not apply to residential customers who use less than 2,001 kilowatt hour per month.

The government rate shall be reduced to 18 cents per kilowatt hour “upon the payment of its $18 million outstanding debt” with CUC.

Villagomez modified his bill yesterday in relation to CUC’s debt with the Commonwealth Development Authority. His revised bill now aims “to subordinate CDA’s rights to loans extended” rather than a total write-off of the $45 million CUC debt.

“This would be more efficient and realistic. It would allow CUC to borrow money to repair needed parts in the power plants. Their liability with CDA can be deferred,” said House leadership spokesman Charles Reyes Jr. said.

Meantime, Reyes said that there is no certainty that Palacios’ projected revenues would be collected, noting that some operators may not afford it.

Palacios bill also aims to impose a lump sum payment of poker license fee rather than on a quarterly basis, as is presently being implemented.