Regulatory body to oversee utility service providers proposed

A new Senate measure will seek the creation of a regulatory body to oversee operations of utility service providers in the CNMI in an effort to protect consumers who end up paying high rates in the absence of such control.

Sen. Ramon S. Guerrero filed Senate Bill 12-54 yesterday to pave for a fresh discussion on the issue after similar legislation failed to pass through both houses during the previous Legislature due to major differences among lawmakers.

He said the lack of government regulation of utility service rate setting is “not in the best interests” of the local consumers as he noted that such function has been under the control of the Commonwealth Utilities Corporation.

Setting of rates, changes of rates for utility services should be subject to review and possible revision by an independent, regulatory body in the executive branch, according to the former CUC executive director.

He said the proposed agency, to be called the CNMI Utility Regulatory Commission, will strengthen utility service provider accountability amid increasing rates imposed on island residents.

Its purpose is to “review proposals to increase or decrease rates for electricity, water and sewer services, as well as rates affecting telecommunications services, and to oversee the implementation of rate-setting activities of the utility provider,” the bill stated.

Mr. Guerrero’s proposal is the third such legislation filed in less than two years. Former Rep. Melvin O. Faisao introduced two similar measures during the 11th Legislature, which both did not pass committee level after CUC officials opposed them.

Under SB 12-54, the proposed autonomous commission shall be composed of seven commissioners who are appointed by the governor with the advice and consent of the Senate. Its operating budget will be appropriated annually by the Legislature.

Its major function will be to ensure by rules and regulations that utility rates and proposed rate increases are “fair, reasonable, justified, non-discriminatory and in the best interest” of the Commonwealth.

The commission shall have the authority whether to approve, deny, suspend, monitor, review, investigate or hold public hearings on an application for rate increase as well as actions taken by utility providers affecting their services, the bill said.

A government corporation, CUC is the main utility service provider in the CNMI, engaged in power, water and sewer needs of the residents.

While a lot of private companies have sprung up in recent years, such as cable television and telecommunications firms, the government does not have a lead agency to regulate their operations — a situation that lawmakers claim has exposed consumers to arbitrary hikes in rates and other service fees.