mv-Monday November 19, 2007
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Palacios says new power rates illegal
By Gemma Q. Casas
Variety News Staff
HOUSE Minority Leader Rep. Arnold I. Palacios says the emergency regulations allowing the Commonwealth Utilities Corp. to again charge higher power rates are “unlawful” as they disregard the existing law that fixes the rate at 17.6 cents per kilowatt hour.
Palacios, R-Saipan, one of the principal authors of House Bill 15-246, which later became Public Law 15-94 on Oct. 4 after the Legislature overrode Gov. Benigno R. Fitial’s veto, said the executive branch has no power to alter what was set in P.L. 15-94 in the absence of a Public Utilities Commission.
“Because the commission has yet to convene, it is not possible for any rate increase to be reviewed and approved in accordance with law. Therefore, CUC has acted beyond its authority, and the notice of Nov. 11 is void,” Palacios wrote the governor on Nov. 16.
“As a result, CUC is now imposing an unlawful charge on residential customers,” he added.
The emergency regulations took effect on Nov. 2 and will last for 120 days. CUC will then adopt them permanently.
CUC is now charging residential customers 25.8 cents for the first 1,000 kwh of energy they consume and 30.2 cents per kwh in excess of that.
The governor said the emergency regulations are allowed by P.L. 15-94 which states that the government can adjust prices of electricity based on the actual cost of imported fuel.
“We’re only complying with the law,” he said in an earlier interview with Variety. “We didn’t create the law. The cost of fuel was allowed by that law to be factored into the rates that we now have. The emergency regulations were also a function of that law that we promulgated.”
But Palacios said the power to adjust electric rates is specifically entrusted to the yet-to-be-formed Public Utilities Commission.
“Simply put, that intent is to require that any future rate changes be approved by a duly formed and convened Public Utilities Commission,” he added.
Sunday, November 18, 2007
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