House OKs $42 fuel surcharge subsidy

After a long discussion, House members approved yesterday a monthly fuel surcharge fee subsidy of up to $42—not $70 as originally proposed—for every household in the CNMI. The approval also means raising the poker fee licensure fee by $4,000.

House Bill 14-366, introduced by minority leader Rep. Arnold I. Palacios, proposes to raise the poker licensure fee from $6,000 to $10,000 in order to provide the subsidy.

Palacios amended the rate to $42 following concerns that there may not be enough funds to give credit to all residential users.

At the same time, the subsidized kilowatt usage was lowered to 1,200 kilowatt hour rather than the original 2,000.

During yesterday’s session, Palacios and bill co-sponsor Ray Tebuteb said that most low-income families consume an average of 1,200 kilowatt hour per billing.

Saying that the number may have been arbitrarily picked, Reps. Clyde Norita and Heinz Hofschneider suggested that a study be made first to determine the actual average usage of low-income families.

Palacios said that based on his consultation with the CUC comptroller, he learned that 90 percent of indigent families would benefit from the bill.

Vice Speaker Timothy P. Villagomez, for his part, said that the bill tries to solve the fuel surcharge problem by turning to the poker industry.

“Here’s a problem and you want to solve it by depending on another industry,” he said.

He also said that the bill does not specify what is one month coverage, saying that the CUC’s billing cycle may differ and it may be confusing how much exactly to credit per family.

Further, Villagomez said that Palacios’ bill does not remove the fuel surcharge fee.

“You’re not removing the problem. It’s [still] there,” he said.

Villagomez’s pending bill aims to raise the CUC electricity rate, repeal the fuel surcharge fee, and defer CUC’s loan with the Commonwealth Development Authority. The bill, House Bill 14-362, passed on first reading last week.

Yesterday, Villagomez said he prefers that his bill remain on first reading in view of the passage of Palacios bill as well another measure authored by Rep. Jesus Attao.

Attao’s bill, H.B. 14-365, which aims to generate $9 million for fuel cost, also passed the lower chamber yesterday. The bill seeks to amend Public Law 9-22 to earmark 5 percent of taxes collected.

“Earmarking 5 percent of taxes and fees…will generate some $9 million, which is more than sufficient to cover the fuel cost, including the increase in cost,” said Attao.

Palacios’ bill was passed unanimously by 15 members present in yesterday’s afternoon session. Hofschneider was absent in the afternoon session.

Attao’s bill also received 15 yes votes.