Previous Story
CDA defends CUC on power rates
|
Posted on Dec 01 1998
Commonwealth Development Authority Board Chairman Juan S. Tenorio said yesterday utility rates in the CNMI are reasonable, debunking claims by the business sector that they were way too high.
He said private business owners ought to realize that rates have not been adjusted for many years despite fluctuations in prices of fuel in the world markets.
Tenorio said the Commonwealth Utilities Corp. is subsidizing at between $3 million to $4 million annually for sewer and water services.
“I think the present rate is just fair. We have been accustomed to it for several years now. They must also take into consideration the fact that CUC is subsidizing costs for water and sewer. CUC is really trying its best to serve the public,” Tenorio said.
The Saipan Chamber of Commerce recently urged CUC to reevaluate its operations and look for areas where it can cut costs so that power rates may be brought down.
Local business people said local electricity rates are higher compared with Guam’s.
But CUC said it’s not fair to draw a comparison between Guam’s and CNMI’s rates because costs in fuel imports vary between the two islands.
