to conduct a cost of service studies for water and wastewater for the agency.
Reyes, R-Saipan, said he wants to hear more about the water and wastewater requirements of CNMI than the prevailing rates and situation of the water and sewer systems in the U.S.
CNMI, he added, has a different geography, needs, and culture compared to the U.S.
Dan Jackson, manager of Economist.com, conducted the presentation.
According to Jackson, the average water consumption of a family in Chicago is about 10,000 gallons a month, while a family on island uses less than 10,000 gallons of water.
He said the CNMI needs to dig up about 140 wells in order to provide residents with water service and this is why cost of water service in the commonwealth is high.
Reyes said the water and sewer situation in the U.S. does not apply to the islands.
Jackson replied that the U.S. case study in his presentation is offered only as reference to the rate-setting proposed for CUC’s water/wastewater division.
After Jackson’s presentation, Sen. Joseph M. Mendiola, Covenant-Tinian, said CUC customers do not mind paying high water and sewer rates as long as they get the value of their money.
CUC has to improve its services before it should charge higher utility rates, he added.
One of Jackson’s suggestions is the use of government subsidies and capital improvement funds in order to develop field facilities.
A monthly ground water protection fee of $7.50 may be considered by CUC in its rate-setting efforts, he said.
Jackson presented his study before Reyes, Mendiola, Senate Vice President Felix T. Mendiola, Covenant-Rota, Senate Floor Leader Jude U. Hofschneider, R-Tinian, and Senate Public Utilities, Transportation and Communications Committee Chairman Paul A. Manglona, R-Rota.
CUC Executive Director Antonio S. Muna and CUC Water/Wastewater division Deputy Director Bruce Megarr also attended the presentation.
