Lawmakers slam CUC’s proposed fees

Using phrases such as “bordering on ridiculous” and “idiotic proposals,” Saipan lawmakers took turns late yesterday afternoon lambasting the Commonwealth Utilities Corp.’s proposed new and increased fees that include up to 250 percent hikes for some, new fees as high as $800, and late charges from 1 percent to 9 percent. Lawmakers also warned CUC of potentially violating laws that set certain rates and fees.

At the same time, Saipan lawmakers passed on first reading yesterday a local bill appropriating a total of $1 million in Managaha landing fees for the payment of land compensation and funding for the NMI Museum of History and Culture in Garapan.

Toward the end of the Saipan and Northern Islands Legislative Delegation session, around 4:30pm, lawmakers took turns slamming CUC for its proposed fees that are now before the Commonwealth Public Utilities Commission.

They also raised concerns about CUC’s independent regulatory consultant, Georgetown Consulting Group, for what lawmakers describe as unreasonable billings that at times reach “over half-a-million annually.”

“Extremely troubling,” Senate floor leader Ray Yumul (Ind-Saipan) said as he read a notice in the newspaper showing CUC’s current and proposed fees.

He cited, for example, the proposed increase in “late” charges for electric, water and wastewater from the current 1 percent to 10 percent—a 9-percentage point difference.

The investigation fee for electric service, according to CUC’s proposal, will be $600, a 250-percent increase from the current $60.

Yumul reminded his colleagues that today is the “deadline to notify CPUC if a person wants to actively engage the [CUC] board.”

Sen. Pete Reyes (Ind-Saipan), for his part, said CUC’s proposed rates are “bordering on ridiculous.”

“Idiotic proposal,” he said, as he vented his frustration with CUC.

Reyes is chairman of the Senate Committee on Public Utilities, Transportation and Communications.

“CUC is running loose, uncontrolled. If it’s the Legislature’s creation, we un-create it,” he added.

CUC’s current fee for “new electric service (single phase)” is $135. CUC proposes this to become $450, a 233-percent increase.

There are seven other “new” fees, the highest being the new electric service (three-phase) of $800.

This is followed by CUC’s proposed $690 renewable energy installation inspection.

“This means you have to pay from zero to now $690 just to notify CUC of the installation of [renewable energy] panels, and then $125 for renewable energy annual inspection,” Yumul said. “This is extremely troubling…It’s like they’re pulling numbers from the air.”

CUC is proposing a $600 fee for new electric service connection-after hours, and unauthorized electric connection, $550.

The other proposed new fees are the disconnection at pole fee of $220, and reconnection at pole, $200.

Rep. Lorenzo Deleon Guerrero (Ind-Saipan), chairman of the House PUTC Committee, said a lot of community members, including the chairman of the newly re-established CUC board, are also concerned about the proposed fees.

Reyes, during the session, said he is drafting a Senate resolution that will “get rid of excessive billings” by Georgetown Consulting. He said he’s been made aware that Georgetown would call CUC to provide data for its review, “and then charges for the data that CUC provided.”

The senator also said CUC may have—or has already been—violating certain laws that set certain charges or fees.

“CUC does not comply with the law. [For example], the commercial rate for PSS sewer, water has not been implemented so PSS is still billed in excess of what the law dictates,” he said.

In March, Gov. Eloy S. Inos signed a bill that drastically cuts the reconnection fee for CUC customers. For example, the reconnection fee will now be $25 instead of $60 for CUC residential customers. Lawmakers questioned yesterday how this relates to CUC’s proposed “reconnection at pole” of $200.

Land claims payment

Saipan lawmakers passed on first reading yesterday afternoon House Local Bill 18-145, authored by Rep. Anthony Benavente (Ind-Saipan) and four others. The bill is expected to pass on final reading next session and will then go to the governor for action.

Of the total amount, $900,000 will be for land compensation payments to be “distributed equally by percentage to all land compensation claims” on Saipan, and the remaining $100,000 for the museum’s much-needed renovation and upkeep.

They also passed on first reading delegation chairman Rep. Ray Tebuteb’s (Ind-Saipan) HLB 18-37. Yumul offered a substitute version. The bill appropriates lapsed funds of $47,730 from five local laws.

The delegation also confirmed two of the governor’s appointees by a vote of 19-0 each. They are Elizabeth Balajadia to serve as a member of the Zoning Board, and Herman P. Sablan, to continue serving on the Zoning Board.

Saipan lawmakers discussed the governor’s appointments of three individuals to the Commonwealth Casino Commission. Tebuteb will call a meeting of the delegation leadership next week to form an ad-hoc committee to review the credentials of the three nominees.

House Speaker Joseph Deleon Guerrero (Ind-Saipan) suggested that an existing committee be assigned that task, and for that committee to hold public hearings on the appointees.

Reyes said the committee should do its “due diligence” review of the nominees before making recommendations to the delegation.

Some lawmakers, however, privately commented that the “due diligence” should have been done during and before the bill legalizing casino gaming on Saipan was acted on.