SAYING it is facing an immediate crisis in paying for fuel to generate power for the people of the CNMI, the Commonwealth Utilities Corp is requesting for a power rate increase without the required public hearing.
CUC chief financial officer Chuck Warren said œas long as oil prices remained stable, the size of the large weekly cash payments CUC must make to Mobil Oil were predictable.
But, he added, oil prices have been increasing quickly over the last few months and the current levelized energy adjustment clause, or LEAC, rate is no longer sufficient to cover CUCs oil bills, he said.
CUCs supplier, Mobil Oil, has advised the agency that prices will continue to rise, Warren said.
He noted that Mobils past predictions have been highly accurate, adding that the oil firm uses reliable economic forecasting tools for its projections.
He said CUC has no other source of oil than its contract with Mobil, and this has been reviewed by the Commonwealth Public Utilities Commission.
CUC must pay monthly in cash.
CUCs budget assumes that the LEAC rates fully cover the cost of oil, Warren added.
œThere is no other source of funding to continue CUCs operations. As oil bills increase, CUC will have to stop paying for its only source of fuel, with resultant blackouts, he said.
He added that CUC will also be place in immediate danger of violating the U.S. District Courts stipulated orders.
On Dec. 30, 2010 CUC filed a request with CPUC to adjust its base electric levelized energy adjustment clause rate.
CUC requested for a 2.243 cents per kwh increase " or from $0.24446 per kwh to $0.26688 per kwh.
Warren said members of the public are invited to attend the CPUC meeting on Jan. 11, Tuesday, starting at 10 a.m. at the Family Building in Garapan across from the Bank of Saipan on Garapan Road.
Article source: http://www.mvariety.com/2011010933290/local-news/cuc-needs-to-raise-power-rate-to-pay-for-fuel.php
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Halo Sobat, Nama Saya Sofyan Syah, Memulai Dunia Blogging Sejak Nov 2011, Meskipun Masih Baru terjun di Dunia Blogging, Saya tidak patah semangat Untuk menjadi Yang terbaik dari yang Terbaik, karena saya yakin, Tidak ada hal yang tidak Mungkin.Buat saya Blogging Is My Life.Senang rasanya jika sobat sudah Berkunjung di blog ini.
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