PPUC subsidies and new referral house in Hawaii approved under New Law
By: Eoghan Olkeriil Ngirudelsang:
Koror, Palau — President Surangel Whipps Jr. signed the RPPL 11-39 bill into law on Wednesday, establishing key subsidies for residential water and electricity customers through the Palau Public Utilities Corporation (PPUC), funding a Hawaii medical referral house, and formalizing the day after Thanksgiving as "Family Day."
The bill, introduced by Delegate Timothy Sinsak and co-sponsored by other members of the House of Delegates, includes amendments from the Senate that clarify subsidy allocations. Under the new law, $960,000 is allocated to subsidize residential water and wastewater bills, providing relief for households using up to 2,500 gallons per month. The subsidy reduces costs by $0.00672 per gallon of water and $0.00931 per gallon of wastewater, easing monthly expenses for eligible residential customers.
The legislation also allocates $250,000 to PPUC's "lifeline subsidy" program for residential electricity. Altogether, $1.7 million will go toward offsetting the first 500 kilowatt-hours (kWh) of monthly electricity use for residential customers, with a subsidy of $0.10 per kWh applied. The bill stipulates that these subsidies will be explicitly displayed on customer bills to enhance transparency, breaking down costs into diesel fuel offsets and water/wastewater subsidies. This requirement arose following an October 23 Senate hearing where the Palau Energy and Water Administration (PEWA) urged for clearer billing details.
In response to Senate concerns, the law specifies that the $0.10 per kWh subsidy applies solely to diesel fuel costs. This amendment addresses ambiguity in PPUC's Distributed Energy Rate (DER), which does not currently separate costs of diesel-generated energy from renewable energy. The Senate emphasized that government subsidies should support diesel fuel expenses exclusively, preventing funds from indirectly subsidizing renewable energy.
Beyond utility subsidies, RPPL 11-39 includes $3.675 million to purchase a new patient services building in Honolulu, Hawaii. This funding combines contributions from various sources: $1.14 million from the Cyclical Reserve Fund, $1.86 million from local revenues, and $675,000 from the Non-Communicable Disease Fund.
The new law also formally designates the day following Thanksgiving as "Family Day," clarifying the holiday's observance date. Traditionally held the day after Thanksgiving, Family Day will now align consistently with Thanksgiving each year, creating a three-day holiday weekend in November. This legislation follows the 2017 enactment of RPPL 10-15, which had set Family Day on the fourth Friday of November.
