Previous Story
AG: House CUC rate bill unconstitutional
|
Posted on Nov 30 2006
Attorney General Matt Gregory said yesterday that the House of Representatives’ attempt to set Public Utilities Commission rates violates the recently-enacted PUC Act and the Constitution’s separation of powers. Gregory will notify the House and Senate leaderships that he would advise Gov. Benigno R. Fitial to veto the bill.
The bill, House Bill 15-193, HS1, HD3, lowers all customers’ rates below CUC’s cost of providing electric service (as set out in the October 2006 Commonwealth Registers, p26277). The action comes about a month after the Legislature created the new commission to “ensure that rates will, at all times, be sufficient to enable each entity to meet its financial obligations, operating expenses, debt service, capital improvement needs”. (PL 15-35 (signed Oct. 24, 2006), 4 CMC section 8409(e)0. According to the PUC Act the rates must be “just and reasonable” and no rate may be changed without a public hearing and prior PUC approval. (4 CMC sec. 8424(a)).
Gregory pointed out that the bill: (1) requires the CUC to charge unlawful rates under the new PUC Act, and (2) violates the Constitutional separation of powers, by doing the work of the PUC, and expert executive agency established to set rates.
The Attorney General said that he found the House action particularly disturbing in light of the recent financial crises of both CUC and the government.
“The lesson we learned over that last year is ‘pay as you go’—that subsidies won’t work for electricity. The government almost went broke subsidizing oil purchases. This bill is a recipe for the financial meltdown of our electric system and our government,” he said.
“The bill is unlawful and I must advise the government to reject it,” he added.
