CPUC stands firm on payment of fees ‘without limitations’

The Commonwealth Public Utilities Commission has ordered the Commonwealth Utilities Corp. to continue paying for its expenses without limitation, including consulting expenses and fees, the regulatory commission’s hearing examiner, and all other regulatory expenses.

“If you want to deviate from what we agreed on before, then you should then bring it up in the form of a petition or letter asking for changes,” said CPUC chair Joseph Guerrero last Friday at CUC’s conference room in Joeten Dandan Commercial Building.

This was in response to CUC’s legal counsel Deborah Fisher, who earlier said the language requiring CUC to pay for the commission’s consulting expenses “without limitation” is objectionable and should not be considered.

Fisher, who was not present at the Friday meeting as she was off island, according to CUC’s executive director Alan Fletcher, stated in her report that the commission’s consultant and attorney should not be billing CUC directly.

“CUC needs to have an opportunity to review and object. Equally importantly, the commission should be reviewing these bills first, and then sending the billing to CUC with a request to pay,” Fisher stated.

Fisher also stated that CUC sees it as a “potential ethical problem” in having a third-party payer of legal services review and comment on billings before the commission has already made its review and set forth their intentions.

“CUC sees a problem with the commission ordering payment of bills, which in these matters have been substantial, before the billings are put into utility rates,” Fisher stated.

Guerrero clarified that it should be clear that the commission’s budget, as required by law, is to come up with “foreseeable expenses” that it would assess all regulated entity and that there is a statutory formula for that.

“It’s impossible to object what the regulatory entity files and it serves no purpose to create a bigger budget. Rather, the statute is designed similar to U.S and Guam and I feel that the comments made here [Fisher’s report] are a little bit out of place,” Guerrero said.

He said it shouldn’t be made in a “report through the middle of a docket.”

“I just think that it’s the wrong place to argue about administrative fees and procedures inside of a docket,” he said.

Fletcher noted there were no attorneys present at the CPUC deliberation, but acknowledged that they did have an extensive comment list in Fisher’s report.

“There are many other concerns regarding how expenses are tallied and statements, including ‘without limitation,’ and we do want to reserve the right to comment back at your deliberations today,” Fletcher told Guerrero.

Guerrero said it is not in anyone’s place to tell the commission to do what “is designed for the commission to deliberate; it is not designed for any of the parties to deliberate.”

“I believe it should be in writing and petitioned by the entity, rather than engage in a deliberation,” Guerrero said.