By Bryan Manabat
[email protected]
Variety News Staff
THE Commonwealth Utilities Corp. anticipates that the adoption and implementation of new utility rates — if ultimately approved by the Commonwealth Public Utilities Commission — would occur no sooner than June or July 2026, according to Assistant Attorney General Tina Ngo in a recent status report filed in federal court.
Ngo said the last time CPUC adjusted CUC’s rates was in 2014.
“This means that there have been no changes to CUC’s rates over the last 12 years, despite the fact that prices have risen dramatically,” she said.
Since 2014, the U.S. Consumer Price Index has increased by about 29.28%. “This means that goods that cost $100 in 2014 presently cost approximately $129.28,” Ngo noted.
Ngo also pointed out that the CNMI endured two devastating typhoons in 2015 and 2018. “In addition to the destruction suffered by the people of the CNMI, each storm caused severe damage to CUC’s infrastructure,” she said.
“CUC requires an increase in rates to fully recover the cost of the essential services it provides to the people, businesses, and government agencies of the Commonwealth, including the Commonwealth’s sole hospital,” Ngo added.
CUC filed its Application for Rate Relief with CPUC on Oct. 31, 2025, formally petitioning for approval of proposed changes to its electric, water, and wastewater rates for the first time in 12 years.
“CUC seeks to implement a five-year rate plan that would gradually increase its rates on an annual basis so that by 2030 its electric, water, and wastewater rates will recover the full cost of service,” Ngo said.
CPUC accepted CUC’s filing on Jan. 22, 2026, after the utility submitted additional schedules to supplement its application. According to Ngo, CPUC’s acceptance “does not indicate that CPUC has approved CUC’s proposed new utility rates; rather, CPUC’s acceptance merely initiated rate relief proceedings before an administrative law judge.”
Ngo added that the proposed rate plan has been conditionally approved by the U.S. Environmental Protection Agency as satisfying Stipulated Order 1 requirements for a sustainable financial plan. Paragraph 49 of SO1 concerns CUC’s financial management and requires the utility to develop financial reserves for implementation of its Master Plan.
“CUC’s proposed rate plan, if approved by CPUC, would satisfy this SO1 requirement,” she said.
In November 2008, after the EPA cited CUC for violating the Clean Water Act and the Safe Drinking Water Act, the federal court issued Stipulated Orders 1 and 2. SO1 focuses on drinking water, wastewater, management structure, finances, and long-term capital improvement and financial plans. SO2 focuses solely on oil-related issues, including contamination at CUC’s power plants and required corrective actions.
The stipulated orders require the parties to file periodic status reports with the federal court.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
