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Senator proposes another CUC rate bill
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Posted on Dec 01 2006
Another bill that proposes to amend the current utility rate schedule is now pending in the Legislature.
Sen. Paul Manglona has introduced Senate Bill 15-67, which seeks to establish lifeline rates to provide relief to low income customers.
Manglona noted that utility rates should provide relief to a certain group of customers based on their economic status, rather than consumption.
Currently, the Commonwealth Utilities Corporation’s rate schedule provides households with electric fees that rise with increased usage.
“[T]he low income customers of the Commonwealth Utilities Corporation are suffering from high utility expenses that represent a significant part of their income, particularly those who live on a fixed income. The existing minimum rates do not distinguish between the rich and the poor, but apply to all customers,” Manglona said in his bill.
He proposes to mandate CUC to establish—and modify from time to time—targeted minimum rates for local power and water services, which are consistent with policies and procedures used in other jurisdictions, to benefit low income customers.
To qualify for the targeted minimum rate, a customer must meet with certain low-income eligibility criteria, which include being a recipient of the Federal Public Housing Assistance, food stamps, Medicaid, and the Low Income Home Energy Assistance Program.
In an interview, Manglona said his bill would not run counter House Bill 15-193, which seeks to reduce CUC charges and rates.
“I also support that bill. There is no conflict between it and my bill, because my proposal is not to set the rates, but to authorize CUC to reduce rates for the indigent,” he said.
The House bill, authored by House Minority Leader Arnold I. Palacios has passed the House of Representatives and is now awaiting Senate action.
However, Attorney General Matthew Gregory said Thursday that the House’s attempt to set Public Utilities Commission rates violates the recently enacted PUC Act and the Constitution’s separation of powers. He also said he would advise Gov. Benigno R. Fitial to veto the bill.
