SENATOR Celina R. Babauta on Sunday said she will propose legislation “aimed at providing immediate relief to ratepayers burdened by excessive Fuel Adjustment Charges and water and electric charges imposed by the Commonwealth Utilities Corporation.”
In a media release, she said her bill would “address the issue of CUC’s inflated FAC charges, which have been used to recoup losses from decades of bad debt.”
But CUC maintained the FAC is not inflated and “follows the formulas as regulated” by the Commonwealth Public Utilities Commission. Members of the CUC and CPUC boards are gubernatorial appointees confirmed by lawmakers.
Babauta’s media statement also quoted House Floor Leader Edwin Propst as saying, “While the FAC is a legitimate charge intended to cover fuel costs, CUC has exceeded its authority by inflating these charges at the expense of struggling families and business.”
Babauta said her legislation would “temporarily suspend the portion of the FAC that has been inflated to cover bad debt, providing immediate relief to ratepayers.”
Rep. Blas Johnathan Attao, in the statement, said: “I am in support of this much-needed legislation, and I wish to extend my sincere gratitude to Senator Babauta for her visionary work for authoring this groundbreaking legislation.”
Babauta said her legislation would “safeguard the interests of consumers and … foster a fair and transparent utility system.”
“By addressing the issue of inflated FAC charges, this legislation will shield low-income families and seniors from excessive utility costs and ensure they are billed accurately,” Rep. Vincent Seman Aldan was quoted as saying. Aldan chairs the House Committee on Public Utilities, Transportation and Communications.
“This legislation will better equip ratepayers with the knowledge to make informed decisions about their utility usage,” Rep. Manny Gregory T. Castro stated.
Rep. John Paul Sablan, for his part, said, “Babauta’s bill will alleviate the financial burden on businesses, enabling them to reinvest in their operations and more importantly, focus on creating jobs.”
Babauta said she is urging “all members of the Legislature to support this critical legislation. By taking immediate action, we can alleviate the financial burden on our community and ensure a more equitable and sustainable future for all.”
Artificial rates
Asked for comment, CUC Executive Director Kevin Watson and Chief Financial Officer Betty Terlaje in a statement said:
“CUC has not seen the Senator’s draft Senate bill nor have we discussed the Fuel Adjustment Charge … rates with her. We would like to have an opportunity to discuss the FAC with the Senator and Congressman Propst so they can see that it isn’t inflated and that it follows the formulas as regulated by CPUC.
“Passing artificial rates would not only impact CUC’s ability to continue providing services but will impact the community when the rates are reevaluated.
“We hope that the Senator and Congressman will consider this because we believe that their intent is to help the community and not impact them greater than needed when rates are reevaluated.”
A community member, who declined to be identified, said, “They have been in office [a] long time, but only now, just before Election Day, did they come up with their bill.”
