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CPUC approves order on release of regulation costs
An order that crafts a reporting mechanism on the administrative and regulatory costs the Commonwealth Public Utilities Commission incurs whenever it entertains a petition from a regulated entity such as the Commonwealth Utilities Corp. was approved yesterday.
According to a report by CPUC hearing examiner Harry Boertzel, there have been questions about the fairness of the commission’s regulatory fees and expenses and even the value of regulation, so this new reporting mechanism will make this information readily available to CNMI ratepayers.
“The commission finds these allegations to be extremely serious given the fact that it is tasked with serving as public watchdog to assure that the rates and charges of regulated utilities, including those of the CUC, are just, reasonable, and necessary,” Boertzel stated.
According to him, the commission operates on an administrative budget of just $150,000, which prevents it from hiring full time staff.
“With this limited budget it is challenged to gather the administrative resources that are necessary to regulate CUC with gross annual revenues of over $90 million. It also gain regulatory expenses regulating proceedings on CUC petitions and is billed directly to CUC,” Boertzel stated.
CUC and Georgetown Consulting Group were directed to provide information by Aug. 8 on the consolidated electric, water and wastewater petition filed by CUC on July 5, 2013.
CUC executive director Alan Fletcher, however, asked that this be moved to Aug. 22 as they need more time to prepare the reports.
These reports include CUC’s total expenses for consulting, legal, and any other outside contractual assistance, total of regulatory expense billed by Georgetown, as well as the commission’s summary of regulatory expenses such as counsel fees, notice expenses, travel expenses, and others.
“The transparent disclosure of all regulatory expenses, both those earned by the commission and by CUC should occur as a matter of commission policy in every regulatory docket,” Boertzel said.
All of Boertzel’s recommendations were approved and all information is expected to become available to the public on or before Aug. 22.
