Energy consumption drops by 20M kilowatts in FY 2011

Power users in the CNMI used 20 million kilowatts less in fiscal year 2011 compared to previous fiscal year, mainly due to the declining number of residents, according to the Commonwealth Utilities Corp.

CUC chief financial officer Charles Warren said that many residents have relocated from the islands and many businesses have shut down, resulting in the drop in power usage.

Agency records show that CUC recorded a total of 254,906,034 kilowatts consumed by all customers in fiscal year 2010. In fiscal year 2011, which ended on Sept. 30, the utilities company posted only 233,935,181 kilowatts sold to consumers. This is a 20.9 million difference, or 8.23 percent drop in the total volume of energy used in fiscal year 2010.

Customers’ count also dramatically declined by 6.56 percent. Records show that there were a total of 15,460 CUC customers in fiscal year 2010 but that number dropped to 14,446 when fiscal year 2011 ended a few months ago. This means CUC lost a total of 1,014 customers during the 12-month period.

Based on CUC findings, average customer use was also down in the last two fiscal years. From 1,360 kilowatt-hour average use of a customer in fiscal year 2010, this dropped to only 1,306 kilowatt-hour last fiscal year 2011-an almost 4-percent decline.

According to Warren, the reduction in volume of energy sold to customers is the result of fewer customers and the decreasing energy use of the remaining customers.

“It is our impression that the decrease in customers is the result of the weak economy, with businesses and individuals leaving the islands,” he told Saipan Tribune.

CUC records show that the reduction in power use applies across all types of CUC customers.

Among commercial users, CUC lost 87 customers last fiscal year, dropping from 2,846 customers in fiscal year 2010 to only 2,759 customers in 2011-a 3-percent decline. Their energy consumption also dropped significantly from 2010’s 131 million kilowatts to only 121 million kilowatts last fiscal year, an almost 10-million drop in energy consumption. Commercial customers also reduced their average consumption from 3,825 kilowatts monthly to 3,596 kilowatts-a reduction of 229 kilowatts.

Among government customers, CUC lost six accounts last fiscal year, from 891 government accounts in 2010 to 885 accounts in 2011. Overall, volume usage of government accounts dropped by 3.3 million kilowatts-from 46 million kilowatts in 2010 to 43 million kilowatts in 2011. This translates to a 7-percent reduction in total volume sold.

Among residential customers, CUC posted 7.86-percent decline in the number of total accounts, from 11,723 in 2010 to only 10,802 last fiscal year or a difference of 921 residential accounts.

The volume of energy sold to residential customers also dipped by 7 million from 76 million kilowatts in 2010 to only 69 million kilowatts in 2011-a 9.91-percent loss. Average usage of customers under this classification also dropped in the 12-month period from 545 kilowatts in 2010 to only 515 kilowatts last fiscal year-a drop of 31 kilowatts.

CUC earlier said that it will file an emergency petition before Dec. 8 to increase the electric base rate due to these factors and the increased employer contribution rate being enforced by the NMI Retirement Fund starting this fiscal year.