A snapshot of Pacific power

It may seem as if the Commonwealth Utilities Corp.’s power woes are unique to the CNMI, but in fact many other Pacific jurisdictions are going through similar issues. How they are handling the issues, though, differ. Here’s a snapshot:

Marshall Islands: In July, President Litokwa Tomeing declared a national state of economic emergency after rising fuel costs threatened the government’s ability to maintain power in Majuro, Ebeye and other islands. The government utility companies raised power rates three times since January, but revenue has fallen because customers were cutting back on their consumption or were disconnected for not being able to afford power. The two power companies bring in about $1.3 million in revenue per month, but the cost of diesel to run each plant is about $2.8 million per month. In August, the emergency was extended for 30 more days. The government contributed $5.3 million to pay for a fuel shipment that will last through October. A new shipment to be ordered in October will require an additional estimated $4 million.

In 2006, the mayor and council of Ebeye Island asked the federal government to declare a state of emergency because the island’s generator was only able to provide power for four hours at a time. The U.S. Army lent Ebeye Island two small generators to keep water and sewage facilities running.

For fiscal year 2007, residential customers paid an average of $0.221 per kW hour.
In July and August of this year, residential customers paid $0.41 per kW hour.

Yap: The Yap State Public Service Corp. is similar to CUC because it is government-owned but is financially independent. The Yap State Legislature recently passed a law making it illegal for the company to use a variable fuel charge. The law lowered the price from an average of $0.332 per kW hour in fiscal 2007 to $0.131 now. The company is now only charging customers the base rate of $0.131. To make up the difference, the Yap State Legislature appropriated approximately $500,000 a month for fuel. The YSPSC is currently restructuring the rate plan and proposing an increase to $0.238 per kW hour. Public hearings on the increase will be held next month.

Samoa: Due to rising fuel rates, the Electric Power Corp. raised the fuel surcharge from 25.76 percent to 45.92 percent.

Hawaii: Rates change depending on the island. On Oahu, the Hawaiian Electric Company sets the power rates. The average cost for residential customers is $0.205 per kW hour. On the island of Hawaii, the Hawaii Electric Light Company charges $0.327 per kW hour for residential customers. The Maui Electric Company sets the rates for Maui, Molokai and Lanai. Residential customers on Maui pay $0.28 per kW hour, while Molokai residents pay $0.342 per kW hour and Lanai customers pay $0.328 per kW hour.

Guam: The Guam Public Utilities Commissioner sets Guam Power Authority’s rates. GPA must petition GPUC in order to change the rates. There are two rates: a fixed base rate and a variable fuel rate component. Until 1999, rates changed every month but now they are bi-annual. The Guam Power Authority is currently petitioning for a base rate increase.

Currently, residential customers using 500 kW pay a total bill of $77.15, customers using 1,000 kW pay $173.28, and customers using 1,500 kW pay $269.41. GPA is seeking an increase of 2 to 8 percent for each rate. According to GPA, the increase will improve customer service, improve reliability and quality and improve efficiency.

CNMI: In August, Gov. Beningo Fitial declared a state of disaster emergency for CUC saying Saipan’s main power plant could explode at any time or maim or kill power plant workers. The declaration also suspended CUC procurement regulations and waived the pre-review by the Public Utilities Commission of CUC’s power supply contracts. Fitial extended the state of emergency in September.

In May, CUC more than doubled the cost per kW hour for resident customers from $0.176 to $0.357. Customers using less than 500 kW are paying $0.378 for the month of September.