Palau Public Utilities Corporation is proposing to raise its base rates to be able to recover its full cost of providing power. PPUC has not raised its rates in over 8 years and in the new proposed rates, it seeks to charge its actual cost of producing power.
For example, for households using 0 to 150kwh now pays 2 cents per kwh. Under the new proposed rate, they will pay 12.5 cents per kwh, over 6 times higher than what they pay now. For households using 151 to 500 kwh, now they are paying 9.4 cents per kwh but under the new rate, will be paying 15.4 cents or nearly double what they are paying now. For households using 500 + kwh, they are now paying 14.3 cents but with proposed rates, will be paying 18.5 cents.
Changes are also proposed for commercial and government rates.
In last week’s press conference, President Surangel Whipps Jr. said that restricting PPUC’s rates in the past years have crippled PPUC. He said subsidies have not been enough for PPUC to properly maintain its infrastructure resulting in current power issues.
Public hearing over the proposed new rates are scheduled for this coming Thursday, February 18, 2021 at PHS Multipurpose Building at 6:30pm.

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