Bill seeks to give lawmakers power to set residential CUC rates

If Reps. Janet Maratita (Ind-Saipan) and Stanley Torres (Ind-Saipan) would have their way, lawmakers will assume the authority to set not only residential power and water rates but also reconnection fees.

They want to remove “any and all authority” of the Commonwealth Utilities Corp. and the Commonwealth Public Utilities Corp. to set utility residential rates and reconnection fees and transfer those functions to the CNMI Legislature.

Maratita said CUC and CPUC can still recommend rates but the final decision will rest with lawmakers.

“Lawmakers should be responsive and accountable to the people. We were elected to protect their interests, and that includes protecting their livelihood that is now being negatively affected by high power and water rates,” Maratita told Saipan Tribune in an interview at her office yesterday.

Maratita pre-filed on Monday House Bill 17-283 that amends the Commonwealth Code to remove CUC and CPUC’s authority to set power and water rates for residential customers “without legislative authority and express approval by law.”

\“CUC and CPUC could also recommend residential rates, but it will be the Legislature that will decide on these rates,” she said in an interview.

The bill says CUC utility rates and reconnection fees “have passed the level where they are reasonable.”

“In addition, due to these high rates, residential customers who have had their services disconnected encounter what amounts to insult to injury when once the consumer can finally afford to pay the high arrears, there is yet another obstacle, an unreasonably high reconnection fee,” it adds.

Setting commercial and government rates, however, will remain with CUC and CPUC, among other things.

Torres, in a separate interview yesterday, said he co-sponsored HB 17-283 “out of frustration with CUC” when it comes to disconnecting and reconnecting utility services for residential customers.

“Where is the fair warning and due process, CUC? They disconnect customers’ power and water without giving fair warning,” he said.

Last month, Gov. Benigno R. Fitial signed into law a measure that extends by seven days the 14-day grace period—for a total of 21 days after the billing due date—to allow longer time for CUC residential customers to settle their bill without being disconnected.

Torres, chairman of the House Committee on Public Utilities, Transportation and Communication, said he expects the bill to be referred to his panel.

“We will call in CUC and CPUC for their inputs,” he added.

Maratita, citing her bill, said utility rates and reconnection fees should be set by an entity “that is responsive to people, as opposed to a corporation with no motivation to keep rates low or a commission that may not address the public’s concerns and presently does not have a quorum, assuming that it would want to do so.”