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‘Telesource a public utility under CPUC’
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Posted on Apr 04 2014
The Commonwealth Public Utilities Commission put off making a decision on the change order for Telesource CNMI’s contract—called Change Order No. 5—pending further assessment. The commission made this known in its latest order, placing the agenda on its next regulatory meeting in May.
CPUC’s decision was result of a legal opinion that determined that Telesource is a “public utility” that must be regulated by the commission.
“Telesource CNMI Inc. is a ‘public utility’ within the meaning of Section 8402(e) of Public Law 15-35. It is, therefore, subject to the commission’s regulatory jurisdiction,” states the commission’s order.
At the February CPUC meeting, the commission advised its hearing examiner to examine whether Telesource’s stock divestiture to Marianas Energy Technology Inc. required prior CPUC approval. It was also ordered to examine whether CPUC has the authority to reconsider an earlier decision made in November 2011 that provisionally approved the change order.
To determine whether Telesource’s stock divestiture required CPUC approval, two steps have to be determined first: whether Telesource is a public utility and whether the sale of Telesource’s stock by the Pernix Group to Micronesia Technology Inc. constituted an event that required CPUC approval.
In the opinion issued by CPUC legal counsel George Anthony Long, it was concluded that Telesource is a public utility that subjects the company to the duties and obligations imposed on a public utility and regulated entities.
Because of this determination, if CPUC determines that the Telesource contract will not modify or change the rate structure being charged to customers, then its approval is unnecessary.
If CPUC concludes that the contract may modify or change the rate structure being charged to customers, then it must evaluate the contract pursuant to applicable legislative standard and decide to either approve or disapprove the contract.
