KOROR (Palau Horizon) — Palau Public Utilities Corp. has restored the 3-cent per kilowatt power rate it reduced last year. The move was made to cover the $800,000 shortfall in the funding needed by three outlying state power plants.
PPUC Chairman Roman Yano said 1 cent was reinstated effective April 1. Another 1 cent will be imposed beginning July 1. The third 1-cent hike will be implemented on Sept. 1.
“It was the result of the transfer made by the national government to the three power plants in Kayangel, Angaur and Peleliu. The corporation needs to do this to accommodate the projected expenses for the three state power plants,” Yano said in an interview.
Data furnished to Horizon showed that the projected revenue from the three power plants is way below the cost outlined by the corporation.
For the Peleliu power plant, the funding requirement is estimated at $362,000 while the projected revenue is only $79,300.
For the Angaur power plant, the corporation projected to collect only $13,390 yearly. Its operating cost is $276,200.
The Kayangel power plant’s operating cost is $241,906 while its projected revenue is $90,371.
