House Bill 16-77, House Substitute 1, House Draft 6, Senate Draft 1, otherwise known as the “CUC Private Sector Partnership Act of 2008,” now goes back to the House of Representatives.
Six senators voted in favor of the bill. Three members were absent — Floor Leader Jude U. Hofschneider, R-Tinian, Maria T. Pangelinan, D-Saipan, and Paterno S. Hocog, R-Rota.
The measure sets the benchmark for the procurement process once CUC enters into a private sector assistance agreement, which will be evaluated by the Public Utilities Commission.
The bill has provisions regarding the job security of CUC employees once the agency pursues full privatization.
Section 12 of the bill sets for an orderly transition of the utilities agency into full privatization and the creation of a board, which will require the consent of both houses of the Legislature.
The current executive director of CUC will remain in his position until a quorum of the board members is in place, “and [he] shall serve thereafter at the pleasure of the board.”
Provisions regarding metering and billing, disconnection and reconnection of utility services, residential security deposit, and other items are also incorporated in the legislation.
According to the Senate version of the bill, CUC will shoulder the cost of the PUC review in case of any protest, “or any other PUC action in which CUC’s past, present or future courses of action are being reviewed or considered by PUC.”
The Senate version also states that before any utility rate change is implemented by CUC, “the board or its designee shall comply with any requirement regarding the holding of public hearings within the commonwealth as required by PUC.”
