Remengesau received the Olbiil Era Kelulau version of the bill on Wednesday after both houses revised the measure.The money will be taken from the $8 million loan received from the Taiwan bank, Mega bank which is supposed to be used for the airport rehabilitation.The proposed measure will also require PPUC to undewrite increased fuel costs to the power distribution company.Under the measure, the PUC must credit the fuel rate to its residential customers whose usage is no more than 500 kilowatt hours per month and for commercial customers whose usage is no more than 2,000 kwh per month so that amounts due from these customers will equal the effective rate on May 31, 2008.The credit will remain in effect until rate is reduced prior to the power rate increase.Residential consumers who consumes less than 500 kilowatt per hour are considered low-income earners and are eligible for subsidy. These consumers are now paying 30 cents per kilowatt per hour (kwh) from 27 cents.Small businesses are those which have power consumption of 500 to 2,000 kwh. The rate was increased from 27 cents to 38 cents.Costumers with a consumption of 2,000 or more will now pay 42 cents kwh frpm 27 cents.PPUC said that there was a need for an increase because of the spiraling increase of oil in the world market.Currently PPUC is purchasing diesel at the amount of $3.54 per gallon but by June the fuel supplier will increase it to $4.11.The $3 million subsidy was based on the projected consumption.
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