CPUC to craft order on release of regulation costs

The Commonwealth Public Utilities Commission is now in the process of crafting a reporting mechanism that will show the public the regulation costs of CPUC, the Commonwealth Utilities Corp., and other parties involved.

“In all fairness to the public, everything should be laid out on the table on what [CUC and other parties] are spending on regulation rather than going through every two years having another rate case about fees,” CPUC chair Joseph Guerrero said.

Guerrero instructed CPUC hearing examiner Harry Boertzel to craft the order and link up all costs of regulation in its entirety.

The subject came up after Guerrero announced that the regulatory body has seen some reports of regulation costs from their consultant, Georgetown Consulting, but not from CUC.

Guerrero said that members of the public have questioned the fees and costs that CUC and other parties incur whenever they file a rate petition with the commission.

“Everything has to be substantiated,” said Guerrero, referring to the reporting mechanism that they are now crafting.

He said the “serious allegation” that CUC pays too much for Georgetown’s fees and the cost of the hearing examiner is unsubstantiated and that everybody should know what has been spent.

“I think we can all agree that regulation is necessary and without regulation it may cost more,” Guerrero said.

CPUC commissioner Dave Guerrero said that it is really a question of evaluating the regulatory body, the costs, and how effective the regulatory body is.

“Are we overspending compared to other jurisdictions? Are our consultants overcharging? I just don’t want to leave it out for the people to choose. I’d rather we have a report out there to show what we have spent, including CUC,” Dave Guerrero said.

He also said such a report would help to keep track of costs, “just as a transparency so that people know that the taxpayer dollars are being used wisely and they can comment freely on the report.”

Joseph Guerrero noted that the allegations really hit the “heart of the commission,” which the Legislature intended the regulatory body to do.

CPUC commissioner Oscar Quituga agreed that the parties should release the information and that the order be crafted.

“They [the public] want to be assured that the commission and all parties’ costs are prudent, reasonable, and just,” Joseph Guerrero said.

The proposed reporting mechanism will be discussed at the regulatory body’s meeting this week.