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Fate of power rate repeal now lies with Senate
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Posted on Mar 29 2008
House members are counting on the Senate to pass a bill repealing a law that reduced power rates in the Commonwealth.
Rep. Tina Sablan, one of bill’s sponsors, said yesterday that passing the bill is a difficult political decision, but it “needs to be done.”
“I am hopeful that they [senators] will see the gravity of the situation and act expeditiously,” Sablan said in an interview yesterday.
Rep. Heinz Hofschneider, also a sponsor of the bill, expressed the same hope. “Everyday that we don’t act to repeal that law means CUC will continue to burden the general fund,” he said.
House Bill 16-79 passed the Lower House with a 17-1 vote on Thursday. Rep. Stanley T. Torres voted against the bill. Representatives Oscar M. Babauta and Ralph Torres were not present.
The bill proposes to repeal Public Law 15-94, which forced power rates down to 17 cents per kWh in October 2007, and reduced or scrapped other charges for residential customers.
The law, compounded by the rising cost of fuel, has caused the Commonwealth Utilities Corp. to face a shortfall of about $1 million each month for fuel alone.
Due to the shortfall, CUC for instance failed to pay for a full 30-day fuel supply last month. Power outages are now occurring partly because CUC is stretching to last for 30 days the 23-day supply that it managed to purchase.
Hofschneider said that the repealer bill would not only allow CUC to pay for full fuel deliveries, but also reduce government subsidy to the utility.
In addition, Sablan argued, the customers would not lose much if P.L. 15-94 was repealed. The law, she noted, has not been of any real benefit to the customers, since emergency regulations were adopted to give CUC flexibility in setting the fuel component of the power rates.
House Bill 16-79 will become law once approved by the Senate and signed by the governor.
