Rejection of Alepuyo’s re-appointment disappoints CUC

Commonwealth Utilities Corp. executive director Abe Utu Malae expressed disappointment yesterday with the Senate’s decision on Wednesday to reject the re-appointment of Viola Alepuyo to the Commonwealth Public Utilities Commission.

Alepuyo was the commission’s former chairperson and who, for many months, functioned as the sole regulator of utilities on the islands.

“I am disappointed because it is difficult getting people to serve as a commissioner on the CPUC. For one thing, it is a complex and time consuming job that calls for the services of a true public servant,” Malae told Saipan Tribune, adding that a CPUC commissioner volunteers to protect the interest of consumers as well as ensure the viability and good behavior of monopolies or near monopolies.

Alepuyo’s re-appointment was rejected for what many believe to be in retaliation against Gov. Benigno R. Fitial, whose remark describing Tinian and Rota senators as “stupid” for rejecting a bill that would have allowed casino gaming on Saipan irked these senators.

Although there are two new appointees to the commission, both have yet to be confirmed, which means the CPUC remains “nonfunctioning.”

Malae said the absence of a commission will put a damper on the Renewable Portfolio Standards effort of CUC. “We are fortunately working closely with the Attorney General’s Office and the lieutenant governor to ensure that this important endeavor continues to progress,” he said, adding that CUC looks forward to the nomination and confirmation of new members.

Malae said that CUC continues to lobby for the passage of MFAC bill, which will allow the utility firm to adjust the fuel component of its billing each month instead of the current practice of every six months.

“One of the reasons we pushed for a monthly fuel adjustment rather than six-month LEAC [levelized energy adjustment clause] was for situations where a CPUC lacked quorum such as at present. That ‘monthly fuel adjustment’ bill was passed by the Senate but did not make it past the House last year,” said Malae.

“We are continuing with the LEAC of course but continue to demonstrate that the MFAC is in the consumer’s best interest,” he added.

Without a functioning commission, changes in CUC’s rates would only be possible through legislation and an executive order from the governor in case of emergencies.

CUC earlier said that the LEAC model has a high level of complexity that saddles ratepayers with significant costs. It was learned that because of LEAC’s complexity, CUC and the commission have engaged in numerous contentious disputes over the model’s findings.

The MFAC, according to CUC, is based on a new and far less complex methodology. Because it is to be calculated each month based on estimates of electric usage and fuel prices, the calculation will also include a “true-up” of actual revenue colleted through the MFAC versus actual fuel expenses incurred by CUC.