Gov. David M. Apatang said he was surprised to learn that the Commonwealth Utilities Corp. is seeking another increase in the Fuel Adjustment Charge a week after regulators approved a nearly 20-cent hike, warning that the CNMI’s residents are already struggling in the aftermath of Super Typhoon Sinlaku.
Speaking during a food distribution event organized by E-Land Foundation last May 22 at Coral Ocean Point, Apatang said he only learned about the proposed FAC increase through social media and plans to discuss the matter with the Commonwealth Public Utilities Commission.
“Well, I’m not sure. That was a surprise board meeting, so I just looked at it on Facebook,” Apatang said. “But I need to be talking to some people about that, especially the CPUC.”
CUC last May 15 received approval for an FAC increase tied to rising global fuel prices, but the utility is now asking regulators for another increase that could push CNMI electricity rates even higher.
Apatang acknowledged the growing frustration among residents already dealing with storm recovery, rising living costs, and uncertain employment conditions.
“I’m very much aware of that, and I don’t think maybe we can find a better solution than that,” he said. “I just don’t like to see our people suffering again, you know. Bad enough with the typhoon and all that, so I don’t think it’s the proper time for us to increase our FAC charge at this time.”
The governor also noted that the CNMI government itself is facing financial difficulties, with the administration’s fiscal outlook remaining uncertain as revenue collections continue to lag following the storm.
“As a matter of fact, I was just talking to the secretary of Finance and our special assistant for Budget [& Management] this morning about our forecast,” Apatang said. “So, we’re not looking too good right now as far as the revenue is concerned.”
He added that the administration is hoping economic activity improves as more businesses reopen and taxpayers begin settling their business gross revenue taxes before the close of the fiscal year.
Asked about assistance for residents still waiting for federal disaster aid, Apatang said programs such as the Disaster Nutrition Assistance Program and Disaster Unemployment Assistance remain under federal review.
“There’s a lot of questions about DNAP and all that. That’s in the works,” he said.
Apatang said residents should understand that federal disaster aid is not automatically granted even after a major typhoon declaration.
“This is a different administration. The Trump administration, they’re going through a lot of different scenarios,” he said. “They’re cutting down a lot of stuff, so we have to go through the federal process also.”
According to Apatang, the CNMI has already submitted the necessary requests to the U.S. Department of Agriculture and the Department of Labor and is now awaiting responses.
“We don’t get those things automatically. We have to apply for those things. And we did that,” he said. “So as for DNAP, let’s just be patient. There’s a lot of regulations that we have to go through.”
Despite mounting concerns over utility costs and delayed aid, the governor urged residents to remain united as recovery efforts continue more than a month after Sinlaku devastated parts of the CNMI.
“I just want to say to our people, just be patient. Let’s just work together on this,” Apatang said. “We’ve been through this issue before, several typhoons, and we recovered.”
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