CUC envisions metering all water customers on Saipan, Tinian and Rota that are still paying the flat rate of $11 a month.
The Commonwealth Public Utilities Commission already approved CUC’s request to increase water rates. From April until June 1, residential customers using up to 3,000 gallons of water who used to pay just $1 are billed $1.41 for such consumption.
After June 1, the rate per 1,000 gallons would further jump to $1.81.
In 2004 and 2005, the CNMI Water Task Force secured a federal grant to install more than 4,000 water meters throughout Saipan.
But CUC Deputy Director Bruce Megarr said the “2004 and 2005 series meters had significant problems with the display and that the manufacturer, Severn Trent, agreed to replace them.
There are currently 85 different meter routes around Saipan and CUC is now sweeping the areas to identify broken meters.
“The manufacturer has indicated that they will be shipping approximately 3,300 more meters that should arrive in mid June. Once they arrive, it is anticipated that the CUC crews will replace all of the failed meters late this summer,” said Megarr in CUC’s Status Report for April 2009 as part of the utility corporation’s compliance with the federal stipulated orders.
“Once the meters are replaced they are identified and entered into our billing system. Clerical errors will be identified for subsequent visits by the CUC meter crews,” he added.
The Public School System, which maintains 20 schools and different head start centers throughout the commonwealth, won’t pay a flat rate because it didn’t agree to a settlement agreement reached in 2007 between the CNMI government, CUC and Northern Marianas College.
“Since PSS didn’t agree to the settlement, they are paying at the rate originally disputed. When all the CNMI government accounts and NMC accounts are connected they will also be paying at the higher rate,” Megarr reported.
According to the CUC report furnished to the Legislature, the water base rate of $1 per 1,000 gallon hasn’t been changed for 15 years until now.
With no more garment factories operating on Saipan this year and a significant number of other businesses already closed, CUC said its industrial water revenue sharply dropped.
CUC earned $8.7 million for its water and sewer services but this is projected to further drop as consumers conserve more with meters installed and the economy still in bad shape.
