The rate increases for wastewater were supposed to take effect on July 1, 2009 and Sept. 4, 2009.
Georgetown said the next logical time to adjust rates will be during the March 2010 regulatory session of CPUC.
Georgetown said it does “not make sense” to recommend further rate increases without resolving CUC’s failure to implement the rate increases in July and September.
CUC, in its interim financial plan, wants CPUC to remove the customer charge for residential wastewater customers.
Georgetown said the customer charge was already waived which, it added, was a violation of the CNMI Administrative Code.
“While we have not received an explanation for the reasons behind the CUC action, it is clear that CUC does not have any authority to waive a charge contained in the CNMI Administrative Code or to make any rate adjustment without the specific approval of CPUC,” Georgetown said.
It said the impact of CUC’s failure to collect from its customers the authorized customer charge cost $120,000 in 2009.
“The pattern of CUC ignoring and violating agreements that it has stipulated to and further violating orders of the CPUC is disturbing,” Georgetown added.
CUC earlier said that its ability to comply with the federal stipulated order would impaired by its inability to implement the proposed wastewater increase on July 1.
A year ago, the U.S. Department of Justice and the U.S. Environmental Protection Agency signed and lodged two stipulated orders seeking to reform and bring into compliance CUC’s wastewater plants and collection systems, public drinking water systems, five power plants and an oil transfer pipeline.
The first order requires CUC to comply with its water discharge permits for the Agingan and Sadog Tasi wastewater plants and to implement changes to prevent sewer overflows.
It also requires CUC to achieve compliance in its drinking water systems, which present a health risk to the public.
The second order requires CUC to prevent oil spills at its power plants and pipeline, to comply with oil spill regulations, prepare to respond to oil spills, and provide appropriate cleanup for past and future oil spills.
Failure to meet these requirements will subject CUC to stipulated penalties.
