House minority leader Arnold I. Palacios said his group is undertaking a study on how to properly address the Commonwealth Utilities Corp. funding woes, particularly relating to the fuel cost.<\/p>\n
\u201cWe need to sit down with CUC. We have to look at the recommendations of experts,\u201d said Palacios, adding that there are a number of options that can be pursued to ease the financial burden on consumers.<\/p>\n
He said there is a proposal to sequester funds from the budget or earmark certain taxes to pay off the fuel surcharge.<\/p>\n
He said there are discussions of possible subsidy on the fuel surcharge of up to 2,000 kilowatt hour.<\/p>\n
\u201cWe could probably subsidize up to 2,000 kilowatt hour, which is $70 a month based on a 3.5 cent per kilowatt hour. We\u2019d look for resources to subsidize. Anything above that, the user should be the one to handle it,\u201d said the congressman.<\/p>\n
He said the 2,000-kilowatt hour limit is an estimated average monthly electricity consumption of a family of four.<\/p>\n
\u201cWe\u2019re still looking at all possible options. Definitely there\u2019s no shortage of ideas here. We just need to work together not only with the minority group but the Legislature as a whole,\u201d said Palacios.<\/p>\n
This came after the House leadership introduced a bill proposing to raise the CUC electricity rates in exchange for the removal of the fuel surcharge and the write-off of the $45 million debt of the utility firm with the Commonwealth Development Authority.<\/p>\n
Vice Speaker Timothy P. Villagomez offered House Bill 14-362, which aims to raise the electricity rate 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.<\/p>\n
Villagomez said the residential rate increase shall not apply to residential customers who use less than 2,001 kilowatt hour per month.<\/p>\n
Meantime, he said the government rate shall be reduced to 18 cents per kilowatt hour upon the payment of its $18 million outstanding debt with CUC.<\/p>\n
He said that based on his proposed rates, CUC would collect an additional $20 million from residential and non-profit customers, $38.8 million from commercial customers, and $19.3 million from the government.<\/p>\n
He said this would \u201ccover the additional cost of fuel without having to impose a fuel surcharge fee.\u201d<\/p>\n
He said that CUC generates 420 million kilowatts hour a year or about $60 million in projected revenues.<\/p>\n
CUC said it needs $72 million for fuel supply amid increasing prices of oil worldwide.<\/p>\n
CUC also reports a 25-percent power loss.<\/p>\n","protected":false},"excerpt":{"rendered":"
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