19 Nov 2007

American Samoa power authority says it'll cut rates if it gets properly subsidised by government

4:21 pm on 19 November 2007

The American Samoa Power Authority says it will reduce the cost of electricity if the Legislature provides it with adequate funding.

The acting CEO of the Authority, Michael Keyser, has written to the Senate President, Lolo Moliga, saying that since 2000 they have not received any subsidy, even though the law requires an annual appropriation from the government.

He says the Authority is cross subsidizing the cost of sewer services, water and other divisions, with revenues from the electricity division.

The Senate president has campaigned for three years for the Authority to cut its power rates.

But Mr Keyser has informed Mr Moliga that if the Fono provides this legally required annual appropriation, the Authority will reduce electricity charges by the same amount.