Electric base rate hike takes effect

The Commonwealth Public Utilities Commission has finally certified the tariff sheet for the new electric base rate, putting it into effect starting yesterday, April 17.

It was on Feb. 5 when the commission approved the electric base rate petition of the Commonwealth Utilities Corp. to generate the $2.8 million it needs. Its implementation, however, was contingent on the finalized tariff sheets that would reflect how the rate would be calculated and enforced.

In an order yesterday, CPUC hearing examiner Harry Boertzel indicated that the rate, fee, and refund adjustments reflect those authorized and approved in the Feb. 5 decision and becomes effective as of April 17, 2014.

Based on the new tariff, CUC residential customers using 1 to 350 kWh per month will be assessed $0.0210 per kWh. For users of 351 to 1,200 kWh a month, they will be charged $0.0970 per kWh while customers using 1,200 kWh and above per month will be charged $0.1580 per kWh.

Because the Feb. 5 decision granted residential customers a refund pursuant to Public Law 16-7, a credit of $0.0230 per kWh will also take effect.

There will also be an infrastructure surcharge of $0.021 per kWh. This charge is intended to fund CUC’s remaining obligations under its June 2012 agreement with Pacific Marine and Industrial Corp. This surcharge applies to all customer classes and will expire on Jan. 1, 2015.

CUC chief financial officer Charles Warren revealed that for CUC’s median residential customers (using about 350 kWh/month), the new rates, coupled with the recent LEAC decrease, means an average monthly decrease of 11 percent, or $14.17. For customers at 1,000 kWh, the overall monthly cost will decline by 6 percent, or $24.29.

Meantime, CUC commercial customers will be assessed a non-fuel energy charge of $0.1130 per kWh, which is about $10 monthly impact. For government customers, the rate is $0.1240 per kWh, or $10 per month impact to customer charge.

The infrastructure surcharge of $0.021 per kWh will also apply to commercial and government customers of the utilities agency.

Warren explained yesterday the meaning of the new rates. “The $7 residential and $10 commercial monthly customer charges are fixed amounts billed each month to customers, regardless of usage. The residential credit and infrastructure surcharges are based on consumption and will vary month to month based on how many kWh’s customers consume,” Warren told Saipan Tribune.

Meantime, CPUC ordered for implementation starting on March 1, 2014, the municipal pumping service rate of $0.1070 per kWh—an impact of $9.06 per month. An infrastructure surcharge of $0.021 per kWh will also apply.

CUC’s original request for rate changes was intended to raise about $5.9 million. The CPUC has approved to date only the base rate increase of $2.8 million and the non-rate fees of about $450,000—or $3.3 million.

Due to the delayed approval of its petitions, however, “CUC will realize only half of this revenue during the remainder of this fiscal year,” Warren said.

Non-rate fees for electric

Besides the new base rates, a number of non-rate fees will also take effect, including a $40 check handling charge. Any check tendered in payment of a bill and returned by the bank for any non-payment reason shall be subject to that fee.

For disconnection notice, CUC is authorized to charge $15 upon production of notice and $95 will be imposed for installation of a prepaid meter at a location already serviced by a post-paid meter.

A charge of $135 will be imposed for the installation of a single phase meter at a new service location; while inspection service is set at $90.

For meter test in single phase, customers can request CUC to test their meter and an advanced $75 fee is required from the customer to cover the costs of the tests. This fee shall be returned to the customer if the meter is found, upon testing, to be registering usage outside of normal parameters.

For the meter test for three phases, a $110 fee is required and this will also be returned if the meter is found defective.

CUC is also authorized to charge a fee of $45 for disconnection at the meter for any reason. For reconnection at the meter for a commercial account, a fee of $60 will be assessed.

Non-rate fees for wastewater

On the wastewater side, a number of non-rate fees will also be enforced beginning April 17. These include an $80 wastewater tipping fee; a $100 charge for backflow device inspection fee; and $170 fee for FOG (fats, oils and greases) installation inspection fee.

The biannual inspection fee of all facilities with activities that involve use of FOGs is $60. Remediation fee, meantime, is set at $110.