Utility regulatory body eyed

A measure filed yesterday with the House of Representatives will seek creation of a regulatory body to ensure “dependable, affordable and quality” utility services on the island in efforts to attract investments and encourage competition in the sector.

House Bill 11-480, introduced by Rep. Melvin Faisao, will empower the proposed Commonwealth Utilities Regulatory Commission to oversee power, water, sewer, waste collection and treatment services as well as telecommunications and cable television.

Although the government-owned Commonwealth Utilities Corporation will still provide most of the utility services to the community, the commission will regulate its functions, including rates and fees that it charges to customers.

“It’s about time that we establish a regulatory agency to supervise various utility service providers on the island, including telecom firms and cable TV,” Faisao said in an interview.

His proposal has been backed by three legislators: Vice Speaker Jesus T. Attao, Representatives Heinz S. Hofschneider and Malua T. Peter. The legislation is expected to be discussed in the next House session, according to its proponent.

Faisao said one of the benefits from the bill is to promote competition among various utility providers in the CNMI and attract new investments, thus helping lower prices and rates offered to consumers.

Likewise, the commission will not add another layer to the bureaucracy of approving franchise and license as the body will be the only government agency tasked to handle these functions.

Under HB 11-480, there will be five commissioners to be appointed by the governor and confirmed by the Senate, equally representing the three main islands.

An executive director will also be appointed to administer daily operations of the agency which will generate its own revenues from fees and charges to be imposed on any utility firm.

The commission shall have exclusive jurisdiction over all public utilities in the CNMI to carry out its responsibilities, such as conducting hearings and investigation regarding rate increases.

Faisao’s proposal was prompted by apparent disapproval of his earlier measure that has sought establishment of a government telecommunications agency to regulate telecom companies and services on the island.

Although it has yet to reach the legislative floor for voting, the House Committee on Public Utilities, Transportation and Communications has scrapped the proposal in favor of delegating these authorities to CUC.