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Bill seeks to require CPUC to OK CUC loan above $500K
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Posted on Jul 26 2011
Rep. Stanley M. Torres (Ind-Saipan) has introduced a bill in the House requiring the Commonwealth Public Utilities Corp. to approve loans made by the Commonwealth Utilities Corp. in excess of $500,000.
Currently CUC can only secure a loan of more than $500,000 if approved by law, House Bill 17-205 states that in lieu of that provision, CPUC should be the approving body through the amendment.
“Since this provision was enacted, it has empowered the CPUC to regulate CUC. The Legislature finds that approval by law now rests in the hands of the CPUC, which has oversight over CUC borrowing,” the bill noted.
It added that the CPUC is the proper body to consider CUC’s financial position and analyze the terms of any loan available to CUC.
“In addition, the Legislature believes that CUC must be enabled to conduct its business without multiple reviews, and a review by both the CPUC and the Legislature would be duplicative and could damage CUC’s ability to move forward expeditiously with any loan for which might qualify,” Torres’ bill stated.
