House divided on creation of utilities regulatory body

Rep. Melvin O. Faisao yesterday vowed to pursue legislation creating a regulatory body that will oversee utility services in the CNMI following failure by the Legislature to pass similar measures over the last three years.

The outgoing lawmaker sponsored a bill proposing the Commonwealth Utilities Regulatory Commission to ensure “dependable, affordable and quality” utility services on the island in efforts to attract investments and encourage competition in the sector.

But Rep. David M. Apatang, chairman of the Public Utilities, Transportation and Communications Committee, blocked passage of the measure during a recent House session as he asked for further review of the proposal.

He said Mr. Faisao’s bill will counter an earlier measure pending with his committee that will grant powers to the Commonwealth Utilities Corporation to regulate these activities on the island.

Mr. Faisao also offered that measure, but the committee overhauled its provisions that the representative said it is not the same proposal he introduced more than a year ago.

“There is a big difference between the two proposals as the latest bill seeks the creation of a new regulatory body,” he told in an interview.

Mr. Apatang maintained setting up this agency will require huge funding from the government, resources that are currently limited because of the financial difficulties confronting the CNMI.

“We have to act cautiously,” he told the session last week. “We can’t jump into it and then realize that it will come back to haunt us.”

The PUTC chairman urged the House to defer action on Mr. Faisao’s new proposal, saying that other agencies should be allowed to provide comments before voting.

House Speaker Diego T. Benavente, however, underscored the need to expedite committee review as he noted failed attempt by the Legislature to pass the proposal for the last three years.

“We know we need this commission as the Commonwealth will have a lot of benefits from this,” he said at the session.

Proponents of a new regulatory body believe it will open the telecommunications industry to other investors and encourage free enterprise among competing companies.

It will also monitor pricing system and control skyrocketing rates in the absence of competitors, such as the local cable service and power.

House Majority Floor Leader Ana S. Teregeyo pointed out that CUC, which does not have regulatory functions under existing law, will not be able to handle the job of the commission to police itself and other utility providers.

Under House Bill 11-480, the government-owned utility corporation will still provide most of the utility services to the community, but that the proposed commission will regulate its functions, including rates and fees that it charges to customers.

Mr. Apatang argued the $10,000 annual fee to be imposed for each company as proposed by Mr. Faisao is too high at this time of economic difficulties and will only be passed onto consumers.

This fee is in line with the revenue-generating measure of the commission to fund its operations, according to proponents.

While there was no specific action on either proposal, the House decided to leave HB 11-480 in its calendar for action if PUTC fails to come up immediately with recommendations.