CUC rates at the lowest end of Pacific’s power tariff spectrum

A comparison of utility rates in 21 major Pacific areas showed that the Commonwealth Utilities Corp. charges one of the lowest amounts for electricity.

CUC’s fixed electric rate for residential customers and certified non-profit corporation is 11 cents per kwh. The rate for commercial customers and the government is 16 cents per kwh. This represents a decrease in the government rate, which for all of the 1990s, was 20 cents.

CUC revenues from the power division subsidize operation of the water and sewer divisions.

CUC comptroller Sohale Samari made the utility rate comparison to assist the CUC board of directors and the management in their assessment for a possible fuel surcharge. The study was based on available data from the Pacific Power Association.

Among the 21 Pacific jurisdictions studied, Palau posted the lowest minimum power rate, at 8 cents for residential customers. This rate, however, applies only to the first 500 kwh consumed within a month’s period.

The Palau Public Utilities Corp. charges 10 cents per kwh for a monthly usage of 501 to 2000 kwh, and 12 cents per kwh for usage of over 2000 kwh.

For commercial customers, PPUC collects 10 cents per kwh for the first 2,000 kwh, and 12 cents per kwh for usage of over 2,000 kwh. The government rate is 11 cents per kwh for the first 2,000 kwh, and 13 cents for consumption of over 2,000 kwh.

Further, PPUC imposes a monthly fixed charge of $3 for residential, $10 for commercial and government, regardless of connected load demand or energy consumption.

Marshalls has the next cheapest rate—at 12 cents per kwh for residential, 16 cents per kwh for commercial, and 13 to 16 cents per kwh for government.

The CNMI’s closest neighbor, Guam, charges 12.73 cents per kwh for residential. The Guam Power Authority’s commercial and government rates were not available.

Samari noted that GPA uses black fuel, which currently costs 70 cents per gallon. On the other hand, CUC utilizes diesel, which costs $1.35 per gallon. “Their [GPA’s] rate is still higher,” Samari said.

He also pointed out that even Hawaii, which has more access to cheaper fuel, charges residential customers 15 cents per kwh.

Also interesting are the Niue Power Corp.’s electricity tariffs. NPC charges all customers 12 cents per kwh, and a fixed monthly service charge of $2.12. Airconditioning units, however, are separately metered, at a charge of 20.32 cents per kwh.

Of the 21 utility agencies compared, at least five are currently imposing a fuel surcharge ranging between 1.6 cents to 22 cents per kwh.

For fuel surcharge, the Pohnpei Utilities Corp. collects 10 cents per kwh; Kosrae Utility Authority, 8 cents per kwh; Fiji Electricity Authority, 7.1 cents per kwh; Solomon Islands Electricity Authority, 22 cents per kwh; and Tonga, 1.6 cents per kwh.

Other areas included in the study are American Samoa, Cayman Islands, Cook Islands, Chuuk, Yap, French Polynesia, Kiribati, Marshalls, Kwajalein, Vanuatu, and Samoa.