June 1, 2008CUC rates will rise to 38.7 cents per kilowatt-hour for residential, commercial, government and non-conforming load customers. On May 3, 2008 the rates were raised from 17.6 cents per kilowatt-hour to 35.7 per kilowatt-hour after the governor signed Public Law 16-2 which suspends P.L. 15-94 or the power rate cut until Dec. 31, 2008. CUC Director Muna said the first rate increase was to recover funds for under-billing in February and to keep up with the rising cost of fuel.
According to a May 19, 2008 Marianas Variety article:
PUC has asked CUC to explain its high power rate after some lawmakers — who passed the bill that became P.L. 16-2 — demanded “justifications,” saying that CUC should charge 25.3 cents/kwh only.
But Muna has a different interpretation of the law, saying that the rate model used and approved prior to the enactment of P.L. 15-94 was based on the prevailing fuel cost in the past and not according to the actual, current fuel cost.
A Saipan Tribune article explains the rate:
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.
How can people afford electricity in the CNMI?
Some people can't afford it. Guest workers have reported that they stopped using electricity or their electricity was cut. They use candles for light. A Chamorro friend said her family has stopped using the air conditioning and now relies on fans at night. They use their outdoor kitchen to cook. Everyone reports that they are finding ways to use less electricity.
In a May 23, 2008 Marianas Variety article Muna was quoted as telling House members:
"CUC would like to use its fuel subsidy as a rate credit for its customers who are 'less capable' to pay their monthly bills."
The CUC has an estimated 11, 578 residential customers. Is CUC really making more money by raising rates if people cut their usage every time the rates are raised? Is electrical use going to be only for the wealthiest people of the island?
Articles are copyrighted by their respective authors.