Millions lost due to the absence of utility regulatory commission

The CNMI government could be losing millions of dollars in revenues from its failure to carefully scrutinize the operations of telecommunications and utility service providers in the Northern Marianas.

According to House Committee on Public Utilities, Transportation and Communications Chair Rosiky Camacho, a big chunk of the revenues generated by industry players from local operations goes direct to their parent company outside the CNMI.

Mr. Camacho underscored the need to immediately put this practice into end by fast-tracking the creation of the Telecommunications Commission, which will oversee the operations of all telecom and utility service providers on the islands.

However, the CNMI is faced with the problem of finding individuals who are qualified to sit in the commission mainly because of the stringent requirements called for by the newly-enacted public law.

But Gov. Pedro P. Tenorio said some names have already been submitted to his office, adding that the list of nominees will be reviewed to determine who among them are qualified to occupy seats in the to-be created telecommunications body.

The governor disclosed that aside from the list of possible appointees submitted to his office, the government is also awaiting for recommendations of Tinian and Rota local government to determine who will represent the islands in the commission.

Mr. Tenorio averred that appointees for the telecommunication commission will have to be at par with the standards, as well as meet all requirements to effectively carry out their tasks in the regulating body.

“We have the list now, but I am still waiting for the recommendations from the mayors of Tinian and Rota. It is going to be very difficult because of the requirements and standards set by the law,” said the governor.

The Legislature earlier said that it is hoping to open the CNMI Telecommunications Commission’s doors to qualified individuals who are in the private sector, since the existing law gives the governor the sole authority to appoint commissioners to the body.

Under Public Law 12-39, the proposed autonomous commission shall be composed of seven commissioners who are appointed by the governor with the advice and consent of the Senate. Its operating budget will be appropriated annually by the Legislature.

The commission shall have the authority to approve, deny, suspend, monitor, review, investigate or hold public hearings on an application for rate increase as well as actions taken by utility providers affecting their services.

A government corporation, the Commonwealth Utilities Corporation, is the main utility service provider in the CNMI, engaged in power, water and sewer needs of the residents.

The new law was installed in efforts by the Commonwealth to protect consumers who end up paying high rates in the absence of government control. The telecommunications commission will oversee operations of utility service providers in the CNMI.

The lack of government regulation of utility service rate setting is not in the best interest of the local consumers. The regulatory body will be responsible in the setting and changes of rates for utility services.

The soon-to-be established agency, to be called the CNMI Utility Regulatory Commission, will strengthen utility service provider accountability amid increasing rates imposed on island residents.

Its purpose is to “review proposals to increase or decrease rates for electricity, water and sewer services, as well as rates affecting telecommunications services, and to oversee the implementation of rate-setting activities of the utility provider.” (EGA)