Inos vows to maintain CPUC authority over CUC

Gov. Eloy S. Inos has promised to veto any bill that would exclude or remove the authority of the Commonwealth Public Utilities Commission over the islands’ utilities corporation.

Inos was reacting to Rep. Lorenzo I. Deleon Guerrero’s (Ind.-Saipan) pronouncement that he will introduce a bill that would remove the Commonwealth Utilities Corp. from the regulating authority of CPUC.

Deleon Guerrero, who chairs the House Committee on Public Utilities Transportation and Communications, earlier said that having both a CUC board and CPUC at the same time only “duplicates” the responsibility that he believes should be solely accorded to the CUC board of directors.

Inos, however, disagrees.

“The utilities commission’s function is to regulate utility rates. CUC cannot regulate itself. You think the CUC board will agree to lower the rates if the rate recommended [by its management] is to cover full cost recovery?” said Inos in an interview Tuesday at Saipan Southern High School’s graduation rites.

According to Inos, the recommendation to give the CUC board power to regulate its own rates has been tried in the past but failed.

“We tried that for many years. I think CPUC should continue to oversee rate regulations. The thing here is, the rate proposed by CUC should be reasonable and one that provides efficiency and takes into account the overall economy and so forth,” said the governor.

Inos pointed out that he doesn’t see the need to sever the responsibility of CPUC—as what Deleon Guerrero wants—from the ratemaking process.

Deleon Guerrero earlier disclosed to the media his plan to endorse a bill that would amend Public Law 15-35. This law was enacted in 2006 mandating the CPUC to regulate electric, water, wastewater, telecommunications, and cable television companies in the CNMI.

For the House member, keeping CUC under CPUC’s oversight not only duplicates functions with the utilities board but also continues to cost monies for ratepayers.

Under the law, an entity like CUC shoulders all expenses in any rate petition it files with the CPUC. These expenditures include, among others, fees assessed by CPUC consultants, hearing examiner, and related expenses.

Based on CUC records, CPUC’s current consultant, Georgetown Consulting Services, was paid over $1.626 million from 2009 to 2014.