Maratita defends moves to slash power rates

A legislator yesterday defended the proposal to bring down the cost of electricity for residential and commercial customers of the Commonwealth Utilities Corporation, saying it is in line with an earlier decision to lower government power rate.

Sen. Edward U. Maratita, sponsor of the proposed measure seeking the cuts as well as revamp of the CUC collection system, questioned the selective plan to slash utility charges when all sectors in the Commonwealth are hurting from the economic crisis.

He also called for public hearing on the bill to let the people voice out their concerns regarding what he calls “high” utility rates. “These people need to be heard,” Maratita added.

The senator from Rota was reacting on the statement made by CUC Chairman Juan S. Dela Cruz to the Senate committee on Public Utilities, Transportation and Communications which is currently reviewing the measure.

Senate Bill 11-115 aims to reduce residential rate from 11 cents to nine cents per kilowatt/hour of power consumption and commercial rate from 16 cents to 11 cents, while protecting the rights of CUC customers on the utility services.

Dela Cruz has warned lawmakers against the move, saying it would further increase expenditures of the government as CUC needs to depend on subsidy to maintain its operations.

The Legislature-dictated policy will also mean losses of about $13 million a year, and thus throwing the utility firm into bankruptcy, according to the CUC chairman in his letter to the committee.

But Maratita said the government-owned corporation has depended largely on appropriation from the Legislature on its Capital Improvement Projects funds to match federal grants it receives.

This subsidy does not trickle down to ordinary people who must continue to bear the high cost of electricity on the island despite the current economic hardships, according to the senator.

He also refuted claims by Dela Cruz that the rate cut will risk the agreement forged between the CNMI and US governments that stipulates that CUC must be free from “political maneuvering” to remain eligible for federal assistance.

“How come they accept subsidy when we appropriate funds to match the CIP money,” Maratita asked. “They are violating the agreement by not standing in their own two feet.”

Since the reason for the reduction in government power rate from 20 cents to 16 cents is to ease difficulties of the cash-strapped Commonwealth in meeting its various obligations at this time of economic troubles, he said this is also the underlying factor behind his proposal.

“CUC should not discriminate,” he explained, “everybody is hurting.”

Although he agreed with Gov. Pedro P. Tenorio’s concern that the move is ill-timed , Maratita said “if they can afford to reduce government rate, why they can’t do it too for its private customers?”

Vowing to push the legislation, he asked CUC officials and board directors to be present in town meetings to reply to clamor by the public for cheap utility rates.

“This bill is intended for the whole Commonwealth, so let us not confuse the issue by saying this is meant only for Rota,” Maratita said.