Utilities commission approves 4 non-rate revenue fees

The Commonwealth Public Utilities Commission approved Thursday last week four of the Commonwealth Utilities Corp.’s non-rate revenue fees for unauthorized electric service reconnection and investigation fees, unauthorized connection to poles, and 1 percent late charge for both water and wastewater services.

According to CPUC, CUC’s proposed $550 unauthorized electric service reconnection fee, proposed $200 reconnection at the pole fee, and proposed increase in its investigation fee from $60 to $210 are necessary, just, and reasonable

CPUC hearing examiner Harry Boertzel said that CUC and Georgetown Consulting Group jointly recommended that the proposed non-rate fees be approved by the commission as soon as he certifies that CUC’s tariff sheet incorporates the conditions described among the parties.

CPUC chair Joseph Guerrero acknowledged that there have been comments from the public about some of these fees but he clarified that these fees do not apply to most CUC customers.

“I think in general when people see an increase of fees, it’s natural to object to any fee increase. These fees that we all have discussed and have looked into are important and it should be clarified what these fees are and who would be charged them,” Guerrero said.

He gave particular emphasis on the $550 reconnection fee for those found with unauthorized electric service.

“This is just a small fee, rather then being referred to [the Department of Public Safety] and being arrested for unauthorized connection. I think this is the least of their problems when they could be prosecuted for theft of service,” he said.

Guerrero said it is important for the public to know the cost to investigate unauthorized hook-ups and the time, labor, and materials required to reconnect these customers.

He also said that the $200 reconnection at the pole fee is subject to the condition that it be limited to instances where a customer had attempted to by-pass the system via unauthorized connection.

Boertzel noted that the investigation fee will be increased from $60 to $210, “provided that a customer get two free investigations within a rolling twelve-month period and a third free investigation if it is due to a CUC-caused problem.

Late charge

CPUC also approved CUC’s 1 percent late charge for both wastewater and water services.

Based on his June 13 report to the commission, Boertzel endorsed that CUC continue implementing the current electric service late charge of 1 percent of past due and the said amount be extended to both wastewater and water services.

According to Boertzel’s report, the record was unclear if CUC had been implementing a late charge for water and wastewater services.

Double jeopardy

Rep. Larry Deleon Guerrero (Ind-Saipan), who chairs the House Committee on Public Utilities, Transportation and Communications, said that approving the non-rate revenue fees are a double jeopardy for consumers and he expressed hope that the commission would reconsider.

Prior to the approval of the fee for those who are found with illegal connections, Deleon Guerrero cautioned the commission against approving the $550 reconnection fee and $200 unauthorized reconnection to the pole.

“If found in the act of tampering with connections by CUC, they are also subject to a criminal act. I don’t know if CUC does report it to DPS, so evidently if it is reported and if they do their investigations and is an illegal act in utility theft, it may be a double jeopardy, and go through court hearings and found to be guilty of theft and substantially charged,” he said.

Deleon Guerrero told Saipan Tribune said that there are differences between commercial, government, and residential and imposing unauthorized fees cannot be “set” because it varies, depending on time of investigation.

“They should set up a percentage and a different way to calculate it. What is the size of the customer and their consumption? This rate is not broken down by category; it includes everybody. So how can they differentiate these three,” Deleon Guerrero said.

He said that he would meet with the commission, hoping they would reconsider approving the new non-rate fees.