“If you increase the rate and the number of customers falls off, then the alternative is increasing the rates again,” he added.
This week, the Commonwealth Public Utilities Commission will conduct a hearing for the proposed rate increases.
Georgetown said the rate increase will allow CUC to comply with local law and the federal government’s stipulated orders.
Muna said there’s no problem with Georgetown’s recommendation to reduce by 16 percent the existing levelized energy cost clause to reflect the fall in world oil prices.
CUC is charging $0.22989 per kilowatt-hour but Georgetown recommended decreasing this to $0.19327 per kwh starting April 1, 2009.
Although CUC has yet to submit its testimony regarding the proposed new rate, Muna said they will start implementing it in April.
“With the decrease in power rate usually it has to do with the fuel cost. With respect to the water rates I think it’s a known situation right now that water rates are insufficient to cover the cost and operation. The power operations have subsidized water,” he said.
He said CUC will separate the accounts for its power, water and wastewater operations to ensure that each will be able to operate independently.
