NMHC to factor in new LEAC rate in utility allowance

The Northern Marianas Housing Corp. will take into consideration the newly approved rate cut in the Commonwealth Utilities Corp.’s levelized energy adjustment clause in calculating the utility allowance for those in the Section 8 and Multifamily Housing programs.

Program and Housing Division manager Zerlyn Taimanao submitted to and was poised to seek the board’s approval Monday a proposed utility allowance schedule that she prepared a week ago.

But Taimanao said they “probably have to re-evaluate” since the proposed schedule is “based on CUC’s scheduled electric charges and rates” effective June 2011 and does not reflect the new LEAC rate effective Nov. 20, which the Commonwealth Public Utilities Commission only approved on Saturday.

The new $0.30791 per kilowatt-hour LEAC charge is a 10.6-percent drop from the previous $0.34426 rate.

Taimanao said that they “have to make adjustments to the current utility allowance” every month. She believes that the last time the utility allowance was adjusted was “last year before I came on board,” noting that the allowance remains the same when there is no change in CUC’s rates.

The utility allowance also factors in the housing unit size, added Taimanao.

The board later directed Taimanao to recalculate the utility allowance and include the new LEAC charge and present it at their next meeting in December.

Direct payment

Corporate director Joshua Sasamoto also opened discussion about “possibly” paying the utility allowance directly to CUC.

“We have a big problem with tenants not paying their power so you may want to consider going back to what we’re doing before, which is paying CUC directly. If you ask me, I would recommend that. That way, there’s no question that it goes to CUC,” he said

However, board members raised concerns about this, saying that there are scenarios that might be problematic when this is implemented. For example, what will happen to the difference if the utility bill is only $90 and the allowance is $100?

Board chair Marcie Tomokane instructed NMHC staff to find out whether it’s allowable under the program to make direct payments to CUC, if the difference can be rolled over to the next billing, and if excess funds can be used for the next tenant.