SAIPAN – Representative Vincent “Kobre” Aldan said Friday a 44-cent fuel adjustment charge combined with the administration’s proposed 20-hour government workweek would deliver “two economic blows at the same time” to CNMI families and businesses.
Aldan, who represents Precinct 1 in the House of Representatives, issued the statement on social media hours after the Commonwealth Public Utilities Commission approved a CUC petition raising the FAC from $0.24500 to $0.44489 per kilowatt-hour, effective Friday.
“A fuel adjustment charge at approximately 44 cents per kilowatt hour combined with a proposed 20-hour government work week would strike the CNMI with two economic blows at the same time, higher utility costs and lower household income,” Aldan said.
A household using 500 kilowatt-hours per month would pay about $100 more each month under the new rate, Aldan said, with the increase reaching $150 at 750 kilowatt-hours, $200 at 1,000 kilowatt-hours and roughly $300 more per month at 1,500 kilowatt-hours. The annual increase at the 1,000-kilowatt-hour level would total roughly $2,400, he said.
“That is only for the fuel charge increase,” Aldan said. “It does not include the base electric rate, water, sewer, rent, food, transportation, school needs or other daily expenses families are already struggling to cover.”
The administration’s fiscal year 2027 budget proposal states that available resources are sufficient only for a 20-hour workweek with furloughs, reflecting a total budget of $101.9 million, which is $32.5 million below last year’s $134 million budget, Aldan said.
“In plain terms, that means many working families could be asked to absorb a major increase in utility bills while also seeing a major drop in work hours and income,” Aldan said. “That combination is not just difficult, it is economically dangerous.”
The representative said reduced household spending would ripple through the local economy, with grocery stores, restaurants, service providers, landlords and trucking companies feeling the impact through weaker revenue, slower hiring and increased risk of layoffs.
Businesses would face pressure from both directions, Aldan said, with higher electric bills and reduced consumer demand. He also warned of growing late payments and arrears that could destabilize the utility system itself.
Aldan pointed to House Bill 24-88 and House Resolution 24-24, both of which he authored, that call for an independent utility audit of CUC by an auditor with utility expertise rather than a financial audit alone. The bill remains in the Senate.
“You don’t know where to cut if you’ve never done an audit,” Aldan said. “The smart way to do it would be to do an audit, so you find out that you’re diagnosing the system and trying to figure out what’s wrong with the system, and the only way to do that is to do an audit.”
Aldan said the public deserves full accountability and transparency before being asked to absorb the FAC increase.
“The people of the Commonwealth cannot continue to be treated as the automatic backstop for every failure to control costs, improve transparency, tighten procurement, and protect rate payers,” he said. “Before the public is asked to endure this level of hardship, there must be full accountability, full transparency, and visible evidence that every reasonable step has been taken to cut costs, reduce waste, and protect the people.”
The CPUC approved the FAC increase at its business meeting Friday. The calculated FAC for May 2026 is $0.60481 per kilowatt-hour and has not yet been petitioned to the commission, according to CUC.
