Senate eyes amendment to telecom law

Not even a month and a half since it was signed into law, the Telecommunications Act which will create a utility regulatory body is heading for yet another amendment.

But Senate President Paul A. Manglona was quick to point out that the Legislature is merely looking at minor changes to the month-old law, which was basically passed to clear the road for a CNMI Telecommunications Commission.

According to Mr. Manglona the Senate is hoping to open the telecommunications body’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.

Its major function will be to ensure by rules and regulations that utility rates and proposed rate increases are “fair, reasonable, justified non-discriminatory and in the best interest” of the Commonwealth.

The commission shall have the authority whether 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.

While a lot of private companies have sprung up in recent years, such as cable television and telecommunications firms, the government does not have a lead agency to regulate their operations — a situation that lawmakers claim has exposed consumers to arbitrary hikes in rates and other service fees.

Mr. Manglona pointed out that there is a big number of telecommunications experts who are currently in private practice.

These people may not be given the chance to share their expertise with the public if the government would not allow individuals in the private sector an equal chance to seat in the commission, he said.

“We want to give the law more flexibility in terms of the appointment of telecommunications experts from both the government and the private sector to the commission. This way, we are assured that the body will be manned by experts,” he added.

He also disclosed plans to make confirmation of appointees to the telecommunications commission the sole responsibility of the Senate Committee on Executive Appointments and Governmental Investigation.

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.

Officials have underscored that such responsibility should be subject to review and possible revision by an independent, regulatory body in the executive branch.

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.”

PL 12-39 is the third such legislation filed in less than two years. Former Rep. Melvin O. Faisao introduced two similar measures during the 11th Legislature, which both did not pass committee level after CUC officials opposed them.