The Palau Public Utilities Corporation (PPUC) is requesting the Senate for an appropriation to subsidize the utilities need of customers who can’t afford to pay the power and water bills. 

PPUC CEO Frank Kyota said the sum of $700,000 to pay for electrical power, water, and sewer connections for “residential customers who are unable to afford these costs of their own.” 

Mr. Kyota said that the appropriation will help fulfill a Community Service Obligation, especially for those who need them.

The Senate earlier, recommends a rate subsidy to Palau Public Utilities Corporation to keep PPUC from increasing utility costs due to PGST imposition on PPUC.

PPUC CEO Kyota has argued that the subsidy will not be a PPUC subsidy but a consumer utility subsidy. The proposed amendment authorizes $2.45 million and appropriates $2.24 million for FY 2023 to subside the Automatic Fuel Price Adjustment Clause and the Lifeline Subsidy Program.  Of the amount, $1.85 million comes from local revenue, and $400K comes from the Cyclical Reserve Fund.

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