Teno submits nominees to telecom body today

Gov. Pedro P. Tenorio is expected to submit to the Legislature his nominees to a telecommunications regulatory commission, which will be created under the provisions of the recently signed Public Law 12-39.

Senate leaders yesterday expressed plans to swiftly act on the confirmation of the governor’s appointees to the CNMI Telecommunications Commission. The list will be submitted to the Senate today.

Mr. Tenorio will reportedly submit five nominees to the regulatory commission, which should be manned by seven commissioners. However, the governor is still awaiting nominations from the islands of Tinian and Rota.

Senate Committee on Executive Appointments and Governmental Investigations Chair Joaquin Adriano told reporters that a public hearing has been planned by the end of the week to have at least five of the seven commissioners confirmed by middle of next week.

Mr. Adriano cited the need to immediately organize the commission in light of government efforts to improve the delivery of basic public utilities in the Northern Marianas. Part of the plan is to regulate prices and services.

The government wants 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 PL 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.

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. (ARF)