Power rate hike now permanent

Despite strong objections from CNMI residents, the Commonwealth Utilities Corp. has adopted as permanent its proposed power rate regulations.

CUC, through executive director Anthony C. Guerrero, filed before the Commonwealth Register on Oct. 30 a public notice about the adoption of the new regulations.

Attorney General Matthew T. Gregory approved the adopted regulations.

The permanent regulations will take effect 10 days after the publication in the Commonwealth Register.

The permanent regulations adopted the electric rate study conducted by Economists.com. CUC started implementing the rates in July.

Guerrero stated in the public notice that pursuant to the law, CUC has fully considered all written and oral submissions related to the proposed regulations.

Guerrero said the rates as published shall be in effect until such time that the Public Utilities Commission is duly constituted and can review the rates.

Under the permanent regulations, CUC said the amendments will ensure that customers who qualify for residential rates can take advantage of the Inverted Block Rate Schedule and decrease their utility costs in relation to their monthly consumption of electricity.

Customers who qualify for commercial rates will be accurately metered and charged for their monthly consumption of electricity, based on the applicable commercial rate.

The amendments will ensure that customers, who reside or operate commercial facilities in different building types, including apartment buildings and barracks, can qualify for residential rates and take advantage of the Inverted Block Rate Schedule and thereby decrease their utility costs.

CUC costs will be recovered through monthly customer charges, electric non-fuel rates, and electric fuel rates.

The monthly customer charge was determined by the electric rate study conducted by the Economists.com.

The monthly customer charges are $5.60 for residential, $7.67 for commercial and government, and $56 for non-conforming load.

Under the permanent regulations, CUC will institute an electric non-fuel rate schedule for each customer classification, under which consumers shall be billed based on the number of kWh of electricity consumed during a billing period.

CUC’s chief financial officer will provide a public notice of any adjustments to the electric non-fuel costs rates and the monthly charges, maintain on file the methodology used to determine the rates and charges, take comments, and arrange for public hearings and workshops, which may be attended by the customers and other members of the public.

The utility agency will institute an electric fuel rate schedule, under which all customers shall be billed based on the number of kWh of electricity consumed during the billing period. The charge per kWh will be the same for all customer classifications, regardless of the level of consumption.

The electric rate shall pass through to customers of CUC the monthly fuel costs for generating electricity. Fuel costs subject to cost recovery shall include only production fuel and lubricating oils.

Accordingly, CUC said, the electric fuel rate may increase or decrease or remain the same from month-to-month.

On the first day of each month, CUC will announce the electric fuel rate that will be in effect for that month.

Before the implementation of the new rates last July, the agency was charging 14.5 cents kWh including surcharge for residential, and 19.5 cents including surcharge for government and commercial.

The fuel charges are at 20.6 per kWh in November, 19.4 cents in October, 21.9 cents in September, and 21.5 cents in August.