CUC hikes power rates further

The Commonwealth Utilities Corp. had just doubled its electric fuel rates in May but that’s not the end of it—CUC increased its rates further, this time by 3 cents per kilowatt hour.

From the fluctuating electric fuel rate of 35.7 cents per kWh in May, the June rate is now 38.7 cents, an increase of 3 cents.

CUC executive director Antonio Muna said that based on the latest Mid Oil Platts Singapore data received from their fuel supplier, the price for fuel before freight and other associated charges are added on is averaging $158 a barrel as of May 28, compared to the average price of $138 a barrel in April 2008.

Muna said the June 2008 kilowatt hour sales is projected at 20.8 million, resulting in a projected total fuel and lube cost of $8 million.

“The increasing cost of fuel is primarily the reason for the 3-cent increase per kilowatt hour that our consumers will be experiencing,” he added.

Under CUC’s June rates, residential customers will be assessed 40.3 cents per kWh for the first 500 kWh—the highest ever electric rate in the CNMI.

For those consuming 501 to 1,000 kWh, they will be charged 45.3 cents per kWh; for 1,001 to 2,000 it will be 47.3 cents per kWh; and for those using over 2,000 kWh, the new rate will be 51.4 cents per kWh.

The situation is even worse for businesses. Under the revised June rate, they will be assessed 47.3 cents per kWh, compared to 44.3 cents per kWh the previous month.

For government, this month’s rate is now 47.8 cents per kWh, compared to 44.8 per kWh the previous month.

For non-conforming load, the June rate is now 60.9 cents per kWh. Last month the rate was 57.9 cents per kWh.

“This is too much. I will not spend my stimulus check anymore, it will just go straight to CUC,” a visibly stunned customer told Saipan Tribune.

CUC first revised its power rates on May 3, more than doubling the island’s power rates. This happened after Gov. Benigno R. Fitial approved the law suspending the power rates rollback that was passed by the Legislature.

Since March 2008 up to May 2008, residential customers had been paying the lowest rate at 17.6 cents per kWh, pursuant to Public Law 15-94.

Residential customers first experienced the lowest fuel rates in October 2007 when P.L. 15-94 took effect, putting a cap on power rates at 17.6 cents per kWh.

With the administration’s signing of emergency regulations on Nov. 9, 2007, the electric fuel rate for residential customers jumped from 17.6 cents per kWh to 25.8 cents per kWh from that month until January 2008. When the emergency regulation lapsed in March, the rates returned to the October 2007 level. In May, Fitial signed the law suspending the rollback, resulting in the return to high power rates.

CUC argues that the high rate reflects the actual cost of producing power on the islands.