Fitial returns CUC to board

Gov. Benigno R. Fitial signed yesterday an executive order returning the Commonwealth Utilities Corp. to a board.

This means that CUC, which the governor had earlier placed under the Department of Public Works, will regain its autonomy.

The governor’s order, Executive Order 2006-2, shall take effect after 60 days.

Fitial said that CUC will have an advisory board rather than “a micromanaging” board.

He said he would appoint next week five members of the board, who “shall serve in an advisory capacity and shall defer to the executive director with respect to the management and administration of the corporation.”

Their appointment is subject to Senate confirmation.

New setup

Under the EO, the function and duties of CUC are reorganized as a public corporation that has an executive director as its head.

Unlike the previous setup, the CUC executive director shall be appointed by the governor, not the board.

“The executive director shall manage the corporation in a business-like manner so as to provide the most efficient delivery of services at the most reasonable cost to consumers,” reads part of the EO.

EO 200-2 rescinds a prior executive order [EO 2006-1], which placed the CUC as a division under the DPW.

Further, EO 2006-2 aims to rescind the fuel surcharge fee “as of the effective date of a new utility rate schedule to be adopted by the CUC.”

Fitial earlier said that CUC would be allowed to adjust its rates subject to the approval of an established Public Utility Commission.

He said a PUC would be a third party “to ensure the fairness of the rate/rates requested by CUC.” A PUC bill will be submitted to the Legislature.

Fitial said yesterday that, in the absence of a PUC, CUC’s advisory board would have the authority to approve rate adjustments.

Privatization

Fitial said the reorganization of CUC is necessary in view of the administration’s plan to privatize the power generation function of the utility firm.

The administration said earlier that to ensure a long-term solution, “it is important for the CNMI government to continue to explore privatization options for utility services to ensure that the public is assured reliable utility services at the least amount of cost.”

It said that reliable utility services are necessary for continued economic growth and prosperity of the CNMI.