A typical electric bill for a residential ratepayers using 500 kilowatt-hours per month will now include an additional $18.40.
Yesterday, the Commonwealth Public Utilities Commission, based on the recommendations of its consultant Georgetown Consulting Group, approved the increase of the levelized energy adjustment clause, or LEAC, rate from $0.24446 to $0.28125 per kwh. The increase takes effect today.
Georgetown determined that the new rate of $0.28125 per kwh will enable CUC to recover the current LEAC cycle shortfall within the cycle term.
In the order signed yesterday by CPUC chairwoman Viola Alepuyo and commissioner Kyle Calabrese, the commission said the findings, determinations and declarations were supported by a preponderance of the evidence in the record.
Justification
The commissions meeting was open to the public but Reps. Stanley T. Torres and Francisco S. Dela Cruz were the only ones who showed up aside from CUC chief financial officer Charles Warren, CUC legal counsel Deborah E. Fisher, attorneys Anthony Long and Robert Torres.
Dela Cruz, R-Saipan, expressed his strong opposition to the power rate hike.
He questioned whether ratepayers are getting the service they deserve from CUC.
Dela Cruz also challenged CUC to find cheaper alternative power sources.
CUC said the commission should exercise its discretionary authority to award immediate relief, without the delay of a public hearing.
Warren reiterated CUCs justification for an immediate rate increase, citing a $1 million loss as a result of higher oil prices.
œAn immediate and irreparable inability to pay for oil deliveries would cause power outages affecting the health and safety of the CNMIs residents, businesses and government agencies,CUC said.
Disappointment
Before approving the Georgetowns recommendation. Alepuyo and Calabrese acknowledged the adverse effect of a rate hike on the public.
œI know that CUC has no control over the prices of fuel but Im also very sensitive to the needs of the community, Alepuyo said.
She noted that CUC may not œsurvive without the increase.
œIts a hard choice, she said.
Dela Cruz and Representative Torres, Ind.-Saipan, said they were very œdisappointed with CPUCs choice.
œBut I know the commissioners concern that [if CUC is not allowed to raise its power rate] there could be a repeat of blackouts and thats not what the people want, Dela Cruz said.
Torres said the people should now try to limit their power consumption.
Article source: http://www.mvariety.com/2011011233404/local-news/cpuc-approves-power-rate-hike.php
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