Georgetown’s contract expiring in Sept.; RFP to be issued

The Commonwealth Public Utilities Commission would soon issue a request for proposals, or RFP, for consulting services following disclosure that Georgetown Consulting Group’s contract is expiring on Sept. 30, 2014.

Commission chair Joseph Guerrero and commissioner Dave Guerrero separately confirmed this with Saipan Tribune.

Georgetown has been the CPUC’s consultant since 2007. It assesses and charges fees for the number of hours it works in a rate case and bills the regulated entity such as the Commonwealth Utilities Corp. Prior to sending its bill, these billings are fully reviewed and assessed by the commission, Guerrero said.

“There’s no retainer. The fee is only when the case is made. So when there’s a case [before us], our consultant start charging and bills it monthly—in this rate case—to CUC. The billing is very detailed on what it’s charging. If there are no complaints, which we didn’t hear [from CUC], it pays for it,” said Guerrero.

CUC board chair David J. Sablan recently raised concerns over what he described as the high fees Georgetown charges CUC. It was earlier disclosed that payment to the consultant amounts to about half a million dollars. The consultant’s seemingly “long process” of review was also criticized.

But for CPUC chair Guerrero, the fees that CUC pays Georgetown are justified and reasonable. In fact, Guerrero said, the fees assessed by Georgetown are considerably lower than what is being charged in other jurisdictions.

He explained that, for example, in Docket 13-01, which is the latest filing from CPUC and was filed in July 2013, there are numerous items for review and approval.

Guerrero described “Docket 13-01” as “not a typical rate case.” In fact, he said the CPUC has broken down this petition to three schedules: in December, February, and May.

“We’re always cognizant of the costs. The average simple rate case in the U.S…the number is maybe $120,000 for one simple rate case. In CUC’s latest docket, there are 10 issues,” said Guerrero.

On the “long period of review,” he said the reasonable timeframe takes from three to six months. And because CUC’s rate case encloses numerous items, a little more time is needed.

CPUC commissioners Joseph Guerrero, Dave Guerrero, and Oscar Quitugua separately told Saipan Tribune that they are satisfied with the performance of their consultant as well as hearing examiner Harry Boertzel.

Joseph Guerrero revealed that Georgetown Consulting Group was highly recommended by the U.S. Department of the Interior. The group, whose members are experts in the field, also provides similar service to commissions in American Samoa, U.S. Virgin Island, and Guam.

“Georgetown and our hearing examiner are providing good service since the start in 2007. Both came highly recommended by the federal government. They were recommended because of their track record,” he said.

Guerrero encourages anyone, including the CUC board, to file a complaint on any issue for the CPUC to deliberate on the matter.

Without any filing, Guerrero said, CPUC will consider all issues raised as “hearsay” and warrants no response from the commission.