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Senate committee holds hearing on removal of CUC price tag
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Posted on Oct 20 2008
The Senate Committee on Public Utilities, Transportation and Communication will conduct a public hearing today on two bills concerning the Commonwealth Utilities Corp.
The committee, led by Sen. Paul A. Manglona, called the hearing to gather information and testimonies on the proposed removal of the $250-million price tag set by a just-passed law for the sale of the Commonwealth’s power system.
The legislative panel also hopes to collect input on a House-approved legislation requiring CUC to establish an Internet payment system for its customers.
Witnesses invited to the public hearing are CUC executive director Antonio Muña, Finance Secretary Eloy Inos, acting Attorney General Gregory Baka, and the members of the Public Utilities Commission.
The hearing will be held in the Senate chamber at the Legislative Building on Capital Hill, starting at 10am.
Senate President Pete P. Reyes introduced the bill designed to remove the much-criticized artificial price floor for the sale of CUC’s power division. The price tag was part of the CUC privatization measure that the Legislature earlier this month passed despite the lack of ample review and public input, and over the governor’s objections.
In the amendment bill, Reyes now states that, “Any purchaser would, naturally, have to recoup this investment and would, necessarily, have to dramatically increase the rates charged to customers to recover the cost. …[M]aintaining this artificial floor will greatly harm ratepayers and the economy of the CNMI.”
Also before the Senate for action is the bill that mandates CUC to allow its customers to pay their bills through CUC’s official website. Previously passed by the House of Representatives, the legislation says this will bring convenience and efficiency to CUC’s payment system.
“Making online payments for household bills is common and practical in today’s environment and it would save CUC customer service expenses and save time for customers. Moreover, Internet payment service could allow third parties such as relatives to directly pay CUC customers’ utility bills during times of economic difficulties,” the bill states.
