CUC rate consultant to arrive in January
Representatives of economist.com, the rate regulatory consulting company of the Commonwealth Utilities Corp., is set to arrive on the island in the first two weeks of January.
According to legal counsel James Sirok, the Fuel Adjustment Charge or FAC, formerly known as the Levelized Energy Adjustment Clause, is in need of attention.
Due to the weather and storms experienced in the last few months, despite the changing fuel prices, CUC was unable to perform a rate calculation so as to calculate overpayments and disburse the monies back to customers.
Board member Joe Torres said that while the FAC is important, adjusting water rates should also be considered in the future.
Sirok said that U.S. District Court for the NMI designated Judge David O. Carter will also be paying CUC a visit come January for a status conference on Jan. 26 to ensure CUC’s compliance with stipulated court orders.
Earlier this month, Carter expressed the urgency for CUC to complete its new pipeline.
The oil pipeline project is an 8-inch aboveground receiving pipeline that delivers diesel from the Mobil oil facility to CUC Power Plants 1 and 2 in Lower Base. The U.S. Environmental Protection Agency has stated that the pipeline must be properly replaced as it poses an irreparable environmental harm.
This sounds like another rate increase on the way after all is said and done. If that is the case, best put CUC on a receivership already and get all done one time.