Public hearing called for power rate cut • Sen. Maratita says proposal seeking to reduce cost will push through despite strong oppostion from governor and CUC

Insisting the Commonwealth Utilities Corporation continues to enjoy government subsidy, Sen. Edward U. Maratita yesterday called for a public hearing on a legislative proposal to lower the cost of electricity on the island.

“I will be pushing for the bill so the people can speak because it’s only CUC that is saying that there will be a big impact on (its financial situation),” he said in an interview.

The senator from Rota has offered Senate Bill 11-115 seeking reduction in the power rate for residential from 11 cents to nine cents per kilowatt-hour and for commercial, 16 cents to 11 cents.

The measure is pending with the Senate committee on Public Utilities, Transportation and Communications for review before the full body can vote on it.

Maratita said the public hearing will help the committee make recommendation as he brushed aside criticisms that it is politically motivated.

“This is not a political issue because I am not running for reelection and I would like to ask all the people to talk to their congressmen and senators to support this bill because this bill will help the entire CNMI, including businesses and government,” he said.

There are fears that the measure will not draw enough votes from the House of Representatives in the light of Gov. Pedro P. Tenorio’s position that it has some legal questions and economic impact.

Strongly opposed to the move, CUC officials have warned against the Legislature-dictated policy which would only throw the utility corporation back to government subsidy.

They also maintain that they have not raised power rates for the last 12 years and that any cut at this time when the local coffers continue to plunge will only lead them to bankruptcy.

But Maratita said the government-owned utility firm has benefited from forms of subsidy in the last few years, such as capital improvement projects funds and exemption from fuel taxes.

“We save CUC at least $4 million a year from fuel taxes, so it’s about time that CUC should pass these savings to their customers in the form of reduction in the rate,” he pointed out.

“If they really want to stand in their own two feet, the CUC board should introduce a resolution that they will not ask for any kind of subsidy in the form of CIP and they can raise their rate accordingly to make money, but don’t ask for subsidy from now on,” the senator added.

CUC anticipates losses of at least $13 million annually should the proposal go through, the same amount that the island government must raise to keep them operational at its current level.

Observers, however, are skeptic the bill will ever go through, noting the governor’s opposition, while others believe this would become a test of the Legislature’s political will.

“It’s about time that they also help those poor people and the businesses that are suffering also,” Maratita explained as he urged CUC to extend its decision to lower government power rate from 20 cents to 16 cents to all of its customers.