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‘CUC cannot have rate adjustments’
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Posted on Jan 12 2012
By Moneth Deposa
Reporter
Reporter
The Commonwealth Utilities Corp. has no authority on its own to adjust its rates without permission from the Commonwealth Public Utilities Commission, so the commission’s possible shutdown would hobble any plans to increase or lower rates, according to CUC officials.
Deputy executive director Alan Fletcher and chief financial officer Charles Warren are optimistic, however, that Gov. Benigno R. Fitial will soon appoint new PUC commissioners to allow the commission to continue to run.
The commission currently has only Viola Alepuyo as its commissioner and is allowed to operate for just 60 days; after that it must shut down until the appointment of new commissioners. Any such appointment would require Senate confirmation.
The expiration of the 60-day period is on Jan. 29. This can only be extended for 30 days by the governor.
The commission must have at least five members. Alepuyo was the only one left following the resignation of other members. As of yesterday, appointments have yet to be made by the Executive Branch.
Fletcher and Warren told Saipan Tribune that, without a functioning commission, changes in the rates could only be possible through legislation and executive order from the governor in case of emergencies.
In analyzing the bigger impact to CUC, the two support the continuing process being conducted by the commission.
“Without a functioning PUC, we don’t have the ability to change rates on our own. The unfortunate side of our business is: we have to charge for our services. We’re just hoping that this [after Jan. 29] will not result in any problems,” said Fletcher, emphasizing the importance of keeping PUC functioning.
Prior to its possible closure on Jan. 29, the commission is expected to decide on several CUC issues, including rate hike proposals for water and wastewater, possible reduction in levelized energy adjustment clause, and other issues.
“If something awful happens without the CPUC, obviously we will have to go to the Legislature. Depending on the situation, if it’s a dying emergency, we would need the governor’s assistance through an emergency order,” Warren told Saipan Tribune.
CUC does not want to go that route as much as possible, he added.
