Power rates ‘too high’ •Business asks for lowered rate following gov’t discount

The Saipan Chamber of Commerce yesterday urged the Commonwealth Utilities Corp. to examine closely its operation so that it can reduce the rate of electricity for the whole community.

According to Joe Ayuyu, president of the Chamber, members of the business community believe that they are paying too much for their electricity rate in the Northern Marianas, far higher than neighboring Guam.

“The cost of fuel has gone down several times in the world market but it is still very high here. We, in the business community have always believed that 16 cents per kilowatt hour is extremely expensive. I believe that businesses should only pay $12 to $13 cents per kilowatt hour, ” said Ayuyu. The utilities firm charges 16 cents per kilowatt hour to commercial users.

Last week, CUC has reduced its rate to various government agencies by 20 percent in a move to assist the administration cope with the budgetary shortfall as a result of the ongoing economic crisis. This will result in some $1.5 million savings in government for a year from the nearly $8 million it pays annually for electric bills.

Pamela Mathis, spokesperson of CUC, said it would be unfair to compare the utility rates of CNMI to Guam because “it dislike comparing apples and oranges.” She said the base rate on Guam may be lower than CNMI but the surcharge on fuel varies depending on the price of delivery of fuel. “It is very hard on the consumers on Guam because the computation is difficult and complicated compared to the CNMI,” said Mathis.

However, when it comes to business management and reliability in delivering services, CUC is far more efficient than Guam, she said, adding that Guam is still beset with blackouts. Compared to Phonpei, The CNMI, rate is still low since it charges the business sector $23 to $24 cents per kilowatt hour there.

“The business community should be happy to learn that their tax dollars are not going to any form of subsidy to CUC and that instead, because the government has maintained the highest rate, all we’re doing is make them equal to the business sector,” said Mathis.

Mathis stressed that CUC has improved its business management so much that it no longer needs the government subsidy which was what was intended by the law.

Most of CUC’s earnings goes to power generation, engine, fuel, maintenance and payment to manpower. Every month, CUC spends some $2 million every month on fuel. Since 1994, the utilities firm has paid off its $7 million dollar debt in Mobil as well as the Mitsubishi engine amounting to $10 million.

CUC has cut its staff by 30 to 40 percent since 1997 with a total manpower of 369 on Rota, Saipan and Tinian.

In the future, Ayuyu suggested that a certain portion of CUC’s profit may be returned to the community through infrastructure projects which the utilities firm can help carry out.

At the same time, the outgoing Chamber official noted how some government offices have wasted electricity because of their failure to turn off their lights after office hours and even during weekends.