CUC confident it can comply with CPUC order

As ordered by the Commonwealth Public Utilities Commission, he said CUC will have all residential water customers metered by December.

“We have enough supply of meters,” he said, as he expressed confidence that CUC can comply with CPUC’s order.

CPUC recently approved CUC’s petition to increase water and wastewater rates effective June 21.

The eight-page decision dated May 28 was signed by CPUC chairwoman Viola Alepuyo and commissioner Kyle Calabrese.

It ordered CUC to implement the temporary monthly charges for unmetered water service:  $40 for residential customers and  $204 for commercial customers.

CPUC also stipulated the following:

•The establishment of a separate CNMI government water and wastewater customer class that will be referred to as “government,” which comprises all components of the CNMI government, including the central government, line agencies, the college, the public schools and the autonomous agencies. CPUC said this customer class will not include non-CNMI government agencies  included in the commercial class.

• The metered government water rate of $54.30 per 1,000 gallons.

• CUC is ordered and directed to take all necessary steps to provide each water customer with an accurate, working meter and to establish such policies and practices as are necessary to be able to read each such meter in the ordinary course of business.

• CUC’s water division is authorized to make a fund transfer to the wastewater division in an amount not to exceed $1.2 million.

• Metered wastewater rates are increased across the board by 128 percent. These increases are effective for services rendered on and after June 21, subject to CUC’s satisfaction of the conditions.

• Metered residential and commercial wastewater rates should be redesigned in a revenue neutral manner by the creation of distinct service charges. These service charges will be effective for service rendered on and after

June 21 and subject to CUC’s satisfaction of the conditions.

• CUC will prepare, under the hearing examiner’s oversight, and file for commission consideration at the Nov. 2010 regulatory session a proposed groundwater protection fee.

• The hearing examiner is authorized and directed to investigate the need for temporary monthly charges for unmetered residential and commercial wastewater service and to make appropriate recommendation for remedial action to the commission at the Sept. 2010 regulatory session.

• A $40 meter investigation fee is established effective June 21. This will not be charged to the customer in the event it is determined that the meter is malfunctioning.

• CUC is authorized to waive the fee for indigent customers.

• CUC is ordered and directed to use best efforts to promptly refinance its obligation under the $2.15 million Agingan Outfall Settlement and the $3.66 million Commonwealth Development Authority sewer project settlement.

In a separate decision, CPUC approved the aggregate levelized energy adjustment clause rate of $0.24446 per kwh effective June 1 from the previous levelized energy adjustment clause, LEAC, rate of $0.20147 per kwh.

The elements of the new rate will now compose of $0.21615 per kwh for fuel oil costs; $0.01621 per kwh to fund variations in projected fuel prices; $0.00644 per kwh to fund CUC’s under-recovery of expenses for the period FY 2007 through May 31, 2010; $0.00565 per kwh to fund commission invoices for regulatory fees and expenses and for the procurement or employment of financial and technical expertise and other related expenses.

 

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