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Tim: Economists.com recommends 25-cent per kwh power rate for CUC
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Posted on Feb 05 2006
A U.S-based economic and financial consulting firm is recommending a power rate of 25 cents per kilowatt hour for the Commonwealth Utilities Corp., according to acting Gov. Timothy P. Villagomez.
Economists.com, which was reportedly paid about $100,000 to conduct a utility rate study for CUC, has completed its draft report and presented it to top government officials last week. The 103-page report, however, is being kept confidential to the public.
In the administration’s weekly conference Friday, Villagomez disclosed that the report recommends a power rate of 25 cents per kwh, which should apply across the board.
Currently, residential customers are paying 11 cents per kwh, while government and commercial customers are charged 16 cents per kwh of electricity consumed. CUC is assessing all customers a 3.5-cent fuel surcharge in addition to the basic rate.
Villagomez said the consulting firm also made recommendations on the water and sewer rates.
Economists.com will make a final presentation on the rate study in two weeks, he added.
Rep. Francisco Dela Cruz, chairman of the House committee on public utilities, transportation and communications, said in a separate interview Friday that the rate study presented different scenarios on which CUC could base a new rate schedule.
Dela Cruz stressed that the government has not committed to any of the options offered by Economists.com.
“It’s only a preliminary study and we haven’t committed to any specific scenario. The public should not be alarmed,” he said.
Dan V. Jackson, managing director and chief executive of Economists.com, was among those who visited the island to make the presentation last week.
