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Bill seeks flexibility for PUC
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Posted on Nov 12 2006
A proposed amendment to the Public Utilities Commission Act would give the commission more flexibility in setting rates and allow the Commonwealth Utilities Corp. to run business as normal during the PUC transition.
House Bill 15-191, which also seeks to lower the bar for utility commissioners, would give PUC the power to issue interim orders “including orders for partial and immediate rate increases or decreases.”
The House bill would allow CUC to proceed with the power plant privatization plan and continue assessing its new rate schedule while PUC is being established.
According to the bill, CUC may issue a request for proposals to privatize or transfer ownership, control, management, or operations of a utility service and the property relating to that service. CUC may also award a privatization contract on the condition that the contractor gets a certificate of public convenience and necessity from PUC.
Private companies that may participate in the bid have to be licensed in the Commonwealth and have been engaged for at least 10 years in a business that is closely related to the utility service begins privatized.
Furthermore, the bill “for the purposes of a deliberate and uninterrupted transition to the regulation under the Public Utilities Commission” would allow CUC to keep continue charging the rates it began implementing in July 2006 until PUC is ready to issue an order setting rates, fees, charges and rents for a utility service.
H.B. 15-191 was introduced by Rep. Ray Yumul and two other lawmakers.
