MPLA opposes underground cable bill

A bill barring the Marianas Public Lands Authority from charging Verizon for burying cables in public lands will have a negative impact on the agency’s capacity to undertake future homestead projects, the MPLA said yesterday.

MPLA public information officer Edward Arriola Jr. said MPLA was acting in the best interest of the Commonwealth in seeking compensation for Verizon’s use of public lands for its underground cables.

Arriola issued the statement following the introduction of House Bill 14-324, which would prohibit MPLA to assess rent on any regulated utility’s underground cable. Utilities covered by the bill include all companies that provide telephone, cable television, and/or power service.

“Although MPLA acknowledges the power of the Legislature to pass any legislation, MPLA will continue to represent the best interests of the Northern Marianas descent whose lands have been used for over 10 years without compensation,” Arriola said. “Because it is the Northern Marianas descents’ lands that enable Verizon to make millions of dollars, it is only fair that Verizon pay rent like every other lessee of MPLA.”

Arriola further noted that being an autonomous agency, MPLA does not get funding from the Legislature. It relies only on revenues from leases and permits for its operations.

“MPLA, therefore, has the fiduciary duty to obtain a fair and reasonable rental for the use of the indigenous lands. In fact, other commercial lessees, like hotels, golf courses, beach concessions, telecommunications companies, are charged a percentage of appraised market value,” he said.

If signed into law, H.B. 14-324 would curtail MPLA’s ability to fund its projects, including future homestead developments in the islands, he added.

Authored by Rep. Claudio K. Norita, H.B. 14-324 says that the customers will be the ones bearing the brunt of additional costs, if MPLA started charging utility companies a fee for underground cables.

The bill also maintains that utilities that take the initiative to bury cables should be rewarded, rather than assessed fees.

“The Legislature finds that the burying of cables utilized by regulated utilities is beneficial to the people of the Commonwealth and should be encouraged. In the likely event that the Commonwealth is impacted by a typhoon, it is essential for the safety of [the] Commonwealth’s residents that communications and power transmission lines remain operative,” a portion of the bill reads.

Further, having cables buried underground enhances the aesthetics of the islands as a tourist destination, as views will not be spoiled by webs of hanging utility cables, the bill says.