Nearly 2,000 signatures garnered in petition for probe into CUC charges

A newly established non-profit advocacy group called Hands of the Community has launched a petition for the Legislature to investigate the Commonwealth Utilities Corp’s Fuel Adjustment Charges in hopes of lowering the cost of utility bills in the CNMI. The petition has garnered nearly 2,000 physical and online signatures.

Four days ago, newly established non-profit advocacy group called Hands of the Community launched a petition for the Legislature to investigate and lower CUC’s electricity rates and among other things.

The petition has since garnered around 1,950 physical and online signatures.

According to member Candice Muna, group members will be at the Legislature to publicly comment about CUC today during a House regular session.

The petition essentially urges legislators to investigate CUC’s rates as it has become the highest nationwide.

“We, the undersigned residents of the CNMI, express our grave concern over the extremely high cost of utilities, especially electricity, in the CNMI. Electricity rates in the CNMI are now the highest in the United States and all its territories. We strongly urge our elected and appointed leaders to investigate this serious issue that adversely affects the health, welfare, and livelihood of every person who resides in our islands. For 46 years—since becoming a self-governing commonwealth of the United States—the CNMI government has run its public utilities through the Commonwealth Utilities Corp., which operates as a monopoly. As a government-created monopoly, CUC has an obligation to be fair and reasonable in the rates it charges public utility consumers (ratepayers),” said the petition.

The petition further states that while the CNMI Public Utilities Commission is tasked with regulating CUC’s rates, its oversight in practice has been minimal due to inactivity until this year.

“While CUC should appear before the PUC in rate-setting hearings, utility consumers are not involved in the process, leaving their voices unheard. PUC’s inactivity, lack of scrutiny, and lack of rate regulation, allows CUC to remain unchecked, without regard for the financial burden it places on the people of the CNMI,” said the petition.

Further, the petition states that for about two decades, CUC has implemented additional charges known as the Fuel Adjustment Charge previously called the Levelized Energy Adjustment Charge or LEAC.

“This charge, as implemented, goes beyond covering fuel-related costs and has become a mechanism for CUC to fund its high operational expenses, including executive salaries, travel, and other unnecessary expenditures,” said the petition.

Because of these charges, the petition claims consumers are being charged massive amounts in utilities.

“CNMI consumers are painfully aware of this charge, as it often doubles their utility bills. For example, a regular electricity usage bill of $350 is typically accompanied by an FAC charge of around $700, resulting in an exorbitant total of $1,050. This unfair burden is placed on consumers, while essential institutions like the CNMI government and the Commonwealth Healthcare Corp. are given leniency when it comes to paying their bills,” said the petition.

“The situation reached a new low on Sept. 27, 2024, when CUC agreed to offset over $10 million in unpaid government power bills. This ‘scratch my back, and I’ll scratch yours’ arrangement between CUC and the CNMI government leaves private citizens and businesses to shoulder the financial burden. Additionally, the CHCC owes CUC approximately $67 million in arrears and penalties. Although this bill is outrageous and questionable, any unpaid bills will eventually be passed on to ratepayers, who are already struggling with the highest utility rates in the United States,” the petition adds.

Other issues raised by the petition include customer service and billing frustrations, and human resources grievances.

“Our elected leaders must investigate and rectify this deeply concerning issue. CUC, as a public corporation, was created to serve the people, not to impose unbearable financial burdens on them. This is an election year, and the people are watching to see if their leaders have the courage to stand up for what is right. Enough is enough! We, the residents of the CNMI, demand that our leaders take the following actions: conduct a comprehensive, independent audit of all CUC, implement thorough evaluations of CUC’s management and leadership, involve the public and employees in performance evaluations of CUC leadership, involve the public in the PUC hearings, examine and drastically reduce the FAC charge, hold CUC accountable for its high operational costs, and end the preferential treatment,” said the petition.

“We, the undersigned, implore you to take immediate action. The CNMI’s future depends on affordable and fair utility rates for all residents and businesses. By signing this petition, we stand united in calling for transparency, fairness, and accountability in the management of our public utilities,” the petition further states.

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