Commercial establishments will be charged 44.3 cents per kwh while the government must pay 44.8 cents.
CUC said it adjusted its electric fuel rates this month following Gov. Benigno R. Fitial’s decision to sign House Bill 16-79, now P.L. 16-2, which suspends the power rate cut law, or P.L. 15-94, a statute that caps the residential power rate at 17.6 cents per kwh.
P.L. 16-2 was signed on Saturday.
In 2006, residential customers paid an average of 21 to 30 cents per kwh. In Jan. 2007, their electric rates were between 23 to 31 cents per kwh.
Prior to 2006, residents paid only 11 cents per kwh while the government and commercial establishments paid 16 cents per kwh.
P.L. 16-2 suspends P.L. 15-94 until Dec. 31, 2008.
“To avert CUC’s total failure to produce power, the Legislature finds it is in the public’s best interest to suspend Public Law15-94 up to Dec. 31, 2008, pending the adoption of a permanent rate structure by the Public Utilities Commission and temporarily restore the previous rate structure…to give CUC the needed flexibility, pending rate making action by the Public Utilities Commission,” P.L. 16-2 stated.
The same law also earmarks $2.15 million in suspended non-general revenue to CUC for its fuel expenses.
“The suspension of earmarked funds under this section shall expire upon the approval of a fiscal year 2008 appropriations act or on Sept. 30, 2008, whichever occurs earlier,” P.L. 16-2 stated.
This week, CUC needs $3.1 million for 20,000 barrels of diesel fuel it will import from Singapore through Mobil Oil.
CUC has approximately 15,000 consumers and five billing cycles.
Saipan customers are billed every 8th, 14th and 21st of each month.
Tinian customers get their billing every 28th of each month while those on Rota get theirs every 29th.
“Some of the bill represents usage in one month while the rest of the electric usage overlaps into the next month,” CUC said in a report.
CUC said its fuel expenses are not only based on how much it pays Mobil. It also includes certain “ad-ons” which make up “an additional 40 percent over the gross prices of fuel from Singapore.”
These “ad-ons” include the 6.8 percent business gross receipt taxes; 6.8 oil spill taxes; profit and trucking fees for Mobil’s fixed ad-ons: +6 cents per gallon for Saipan, +29 cents per gallon for Tinian and +32 cents per gallon for Rota.
Fees are also paid for product quality specs, ocean loss insurance, cargo insurance, wharfage and medium range coastal freight.
All these fees add to the basic cost of fuel and are passed on to consumers.
