She said the account was created by Public Law 10-36 which exempts the sale of liquid fuel to CUC from the liquid fuel tax. This will supposedly reduce CUC’s cost of generating electricity.
Pangelinan, D-Saipan reminded the members of the Saipan legislative delegation’s Committee on Public Utilities and Infrastructure during its recent meeting on Capital Hill, that “the funds from the special reserve account were to be used to set up and maintain annual supply contracts” and schedule the maintenance of power generation and distribution on island.
The panel meeting was held to discuss and vote on the proposal to conduct an oversight hearing on CUC in view of the current power crisis and other issues besetting the utilities agency.
“Where are the funds from the CUC special reserve account” that should serve as a waiver on the liquid fuel tax?” Pangelinan asked, adding that the funds are supposed to be made available to the agency.
The senator wants to know what the Office of the Public Auditor has to say about this issue.
According to P.L. 10-36, OPA has to monitor CUC’s compliance with the law.
The utilities agency announced a 2.6-cent increase in fuel rate this month due to the rising cost of fuel in the international market.
CUC’s rate is now 41.3 cents per kilowatt hour compared to last month’s 38.7 cents/kwh.
The new rate applies to residential and non-residential customers.
During the panel meeting, Pangelinan said CUC should report on the status of the funds generated by its exemption from the liquid fuel tax.
