Majority of the board of the Commonwealth Utilities Corp. said it does not want to \u201cincrease\u201d rates for their residential customers even as the utilities company needs additional revenue to fund several items to recover as well as improve the company.<\/p>\n
During a meeting, CUC\u2019s rate consultant, Economists.com, presented several more numbers and scenarios to the board and management of the company of what the rates could look like should they decide to try and recover from losses and fund improvement projects.<\/p>\n
Items presented that CUC may consider in their adjustment were the Commonwealth Healthcare Corp. agreement and bad debts increase, payment due to the Commonwealth Development Authority, Typhoon Soudelor restoration and mitigation, non-grant funded capital improvements projects, and power plant reserve fund contribution.<\/p>\n
Discussions were made on these items and their corresponding possible rate adjustments should the board decide to fund them and at what amount. <\/p>\n
The consultants also took into consideration possible revenues that would come to CUC should a bill that would require commercial establishments be hooked up to the company becomes law. <\/p>\n
In the sample computation presented by the rate consultants, the potential rate adjustment was said to result to increased revenue for CUC\u2019s projects, while ratepayers would still pay bills that were lower than what they paid for in 2014 due to savings from oil.<\/p>\n
During the meeting, director David Sablan said the rates are not so much of an increase but taking some savings to invest in the utility. <\/p>\n
\u201cI have already agreed with 0.129 per kilowatt hour. Increase is a terrible term to use but especially in my opinion, asking our residential, commercial, and government accounts, if we can take some of the savings from the oil reduction so that we can invest in their utility, I will prefer to look at it from that point rather than say it is an increase in rates,\u201d Sablan said.<\/p>\n
\u201cThis is the dynamic that we need to provide to our management so that they don\u2019t hinder or have to decide, \u2018should I buy a transformer, buy some wire, or make payroll?\u2019 they have to make these kind of decisions because they don\u2019t have enough cash, they don\u2019t have resources. It\u2019s a reflection of our ability as policymakers not providing them the tools and the resources necessary to keep this utility running,\u201d he added.<\/p>\n
Sablan then made a motion for the board to approve the model presented to them but pending final numbers of the rates.<\/p>\n
\u201cI move that we approve this model that has been presented to us with at least six adjustments that have been presented to us, with more refining of the numbers once we have a clearer picture of our financial situation sometime in March as presented to us by the chief financial officer. It\u2019s probable that some of these numbers will be adjusted but it is the model that we need to work on as we move forward to present a case to the PUC (Public Utilities Commission) sometime after March when the board finally agrees on what is going to be the final number,\u201d Sablan said when he clarified the motion.<\/p>\n
He added that he only mentioned the 10 to 12 cents because that will probably be the number that they will be working on.<\/p>\n
Director Diego Songao seconded the motion and director Chris Conception voted yes, but the motion ultimately failed following the majority of \u201cno\u201d votes from chair Adelina Roberto, vice chair Eric San Nicolas, and directors Joe Torres and Albert Taitano. <\/p>\n
\u201cI seconded the motion because I see the need that we need to take responsibility of our obligations, and event to strengthen our infrastructure and to restore back the expenditures that we have for Typhoon Soudelor with conditions to look at some of the resources,\u201d Songao send in an interview. <\/p>\n
Roberto said they did not vote yes to the motion because they did not agree to the rate presented. <\/p>\n
\u201cWe are not agreeing to that rate. We wanted to get our financial statement becuase we are not trying to increase the rate, we are just trying to recover the loss,\u201d Roberto said.<\/p>\n
\u201cMy position is, for any increase, that will be a totally different story. We can probably start cutting salaries before we go with the increase, that will be my position,\u201d Torres said.<\/p>\n
\u201cI was very concerned that if those sections that proposed increase in rates that economist.com showed us, if we adopted all of that, that would mean that the residents struggling now, will struggle even more,\u201d San Nicolas said<\/p>\n
\u201cI\u2019m not comfortable with increasing rates to the points where residents are going to choose between feeding their children or keeping the lights on. That\u2019s absolutely inhumane,\u201d he added.<\/p>\n
Asked how CUC could then have additional revenues that it needs without increasing the rates, San Nicolas said they are working with the Legislature.<\/p>\n
\u201cWe are working very closely with the Legislature for some of the proposed legislation for that are already in the committee or you know in the processed or potentially be drafted,\u201d San Nicolas said.<\/p>\n
\u201cIt\u2019s not a 100 percent solution but it\u2019s definitely a step in that direction,\u201d he added. <\/p>\n
From management, acting executive director Gary Camacho said they have to consider both the community and the company.<\/p>\n
\u201cIt\u2019s an opportune time but at the same token we need to ensure that the decisions made are accurate decisions and to the best interest of the community and the best interests of CUC,\u201d Camacho said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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