Bill installs pro-rated power rates for hotels

The Commonwealth Utilities Corporation has urged the Legislature to draft another bill that would establish concrete policies on the proposed pro-rated charges for power consumption of hotels and other large establishments.

House Committee on Public Utilities, Transportation and Communication Chair Rosiky Camacho said House Bill 12-353 failed to address certain matters in its present from.

The proposed measure aims to regulate CUC charges for power consumption of large consumers by establishing a pro rata schedule of charges based upon kilowatt-per-month of power use.

Mr. Camacho said a new version of the bill will be filed in due time at the request of CUC Board Chair Jesus T. Guerrero.

Mr. Camacho explained reduced charges for power consumption based upon the number of kilowatts consumed, will be the best incentive that may be offered to new and present private companies.

He added that this may also help spur economic development in the Commonwealth.

“A reasonable benchmark for discount shall be consumption of more than one million kilowatts per month and applicable to present and new private companies duly licensed in the CNMI that are required to provide their own waste water system,” HB 12-353 reads.

Further, the bill explained that CUC will offer discounted rates from the commercial rate of $.16 per kilowatt hour to the present prevailing rate of $.11 per kilowatt hour.

Earlier, the Hotel Association in Northern Mariana Islands urged CUC to provide special rate to facilitate the eventual hook up of hotels to the island’s electricity system.

HANMI Vice President Mustafa Issa said giving hotels a bulk user rate of about 11 cents per kwh would make the issue of mandated hook up more acceptable for the establishments.

“We are opposed to CUC coming in and requiring our member hotels to hook up 100 percent. But we see a compromise in a bulk user rate of 11 cents per kwh,” said Mr. Issa.

Under the bulk user rate arrangement, big power customers will pay a guaranteed power bill based on a pre-determined minimum power usage level, regardless of whether actual consumption reached that level or not.

In return, the companies will be charged a special lower rate. But HANMI is asking that the bulk user rate be three-tiered, based on the category, size of the hotel, and the number of rooms. (EGA)