PUTC panel chief vows to block utility rate hikes

The chairman of the House Committee on Public Utilities, Transportation, and Communications, Rep. Lorenzo I. Deleon Guerrero (Ind-Saipan), has vowed to do his best to block further increases in the utility rates of customers.

Deleon Guerrero earlier testified before the Commonwealth Public Utilities Commission of his strong opposition to the recommended rate hikes in many non-revenue fees of the Commonwealth Utilities Corp. He described the new fees as both unreasonable and untimely for CUC customers to bear at this time.

The lawmaker vowed to make the same efforts once further rate hike petitions are lodged by CUC. Saipan Tribune learned that the utilities corporation is expected to submit a new petition—this time on water and wastewater rates—before CPUC within the year.

“As PUC committee chair, I want to make sure that there are no more rate increases for our customers. And I will do everything within my power to stop that,” he told Saipan Tribune.

Deleon Guerrero conceded that the only way for CUC to avert further rate hikes is to allocate needed funds for its operation. He disclosed a committee plan to endorse a line-item bill for fiscal year 2015 that would provide CUC some funding resources, on top of its current budget under local appropriation.

According to the lawmaker, CUC was appropriated this fiscal year $123,000 for its operation. Next fiscal year, he said, the Legislature is looking at giving the agency about $127,000.

“The Legislature is always being blamed and criticized for not appropriating a proper budget for CUC. So this new fiscal year, we will try to accomplish that. We will identify funding that would cover the debts of the public schools, hospitals, and the central government to help CUC in its cash flow,” said Deleon Guerrero, adding that allocating $1 million each for these agencies’ utility debt would be a big relief for the utilities agency.

Although he can’t guarantee at this time how much the Legislature can give CUC for these debts, he assured that something would surely be considered, even if it means cutting budgets of some non-essential departments and programs.

Based on CUC records, the outstanding arrears of its three biggest customers—Public School System, Commonwealth Healthcare Corp., and the central government—amounts to over $22 million and rising.