‘Next to Guam, CUC residential customers are paying lowest rate’

A recent survey conducted by the Commonwealth Utilities Corp.’s rate consultant, economists.com, revealed that its residential customers have the second lowest monthly utility billing in the Pacific.
Data obtained from the utilities agency show that Guam Ports Authority’s residential patrons pay the lowest charge for their power supply, amounting to $136.63 per month. This is as of March 2014 and covers users of 500 kWh per month.

CUC residential customers who use 500 kWh monthly are charged $170.89.

The survey was conducted among 10 islands in the Pacific.

According to CUC chief financial officer Charles Warren, GPA had the overall lowest monthly charge for residential customers due to its use of less expensive fuel.

“The reason GPA is lower overall is that it burns a less expensive fuel (HFO or heavy fuel oil) than CUC. All the other utilities use the same fuel as CUC, which is No. 2 diesel,” Warren told Saipan Tribune yesterday.

After GPA and CUC, Oahu comes next with its power company billing residential patrons using 500 kWh a monthly charge of $183.12.

Maui Electric Co. Limited, meanwhile, charges its residential customers $192.38 per month. American Samoa Power Authority charges residential users $200.79 per month.

Marshalls Electric Company is next with its $205.00 monthly charge for residential customers, followed by Hawaii Electric Light Company with $207.23; Kauai Electric Coop, $234.71; and Molokai, $239.29.

The survey indicates that among the Pacific island utilities, residential customers of Lanai currently pay the highest residential rate at $244.21 a month.

CUC executive director Alan Fletcher disclosed that diesel fuel remains the main source of power generation on many islands.

Based on CUC records, almost similar results came up in last year’s survey. In March 2013, CUC was also on the second spot with the lowest electricity charge for residential customers compared to other utilities that use diesel fuel to produce power.

Since 2009, when rolling blackouts were a common occurrence in the CNMI, CUC had invested millions to upgrade its system and infrastructure. A lot of work, however, still needs to be done. Among these are the continuing upgrades to its power plants and pursuit of new energy sources, including solar and geothermal.

Fletcher earlier pointed out that before CUC engages in renewable energies, it has to be ready as a utility first, which means fully understanding the grid system and how much and where they can safely penetrate the system without causing instability.

At the last board meeting, Fletcher disclosed the result of a grid analysis conducted on CUC, which disclosed that only 8MW, or 5 percent of the current supply need, can be safety inserted into the grid system.