CUC Executive Director Abe Utu Malae said the LEAC emergency increase in January was because of the fuel price increase.
On Nov. 10, 2010, CUC filed a petition with the Commonwealth Public Utilities Commission to raise its electric base rate.
CUC filed supplemental petitions on Dec. 8, 2010 and Feb. 9, 2011 for the electric base rate increase.
In an email interview, Malae said the base rate proposed in December was never formally petitioned until now.
In its petition, CUC told the commission that the rate hike will take effect on April 2, 2011.
The average residential ratepayer uses approximately 500 kwh per month and the proposed rate adjustment will increase the monthly electric bill by $4.18.
“Higher volume residential and commercial users will experience greater increases,” CUC said.
Malae said the current electric base rate for residential customers is $5.60 per month.
“CUC’s rate increase request is primarily due to reasons that are beyond CUC’s control,” CUC said.
CUC is currently operating at a substantial deficit, cannot borrow money, and relies entirely on the revenues from its customers and federal grants, CUC said.
It said the rate increases are critical in order for the company to maintain financial health.
CUC is required by statute and the federal stipulated orders to achieve “full cost recovery,” CUC said.
The commission will conduct a public hearing on March 18, 2011 at 10 a.m. in the Saipan Chamber of Commerce conference room.
