Commonwealth Public Utilities Commission nominee Dr. John “Jack” Angello, second right, and CPUC Chairman James Sirok, second left, with Gov. Arnold I. Palacios, left, and Lt. Gov. David M. Apatang in June 2023.
THE House Committees on Judicial and Governmental Operations, and Public Utilities, Transportation and Communications approved on Wednesday a recommendation to endorse the reappointment of retired educator Dr. John “Jack” A. Angello to the Commonwealth Public Utilities Commission.
Angello, whose initial term expired in April, will again represent Saipan on the CPUC, which still doesn’t have a quorum. He served as CPUC’s secretary and treasurer while the chairman is former Commonwealth Utilities Corp. legal counsel James Sirok.
Angello and Sirok attended the joint public hearing at 10 a.m. on Wednesday in the House chamber.
Present were the JGO chair, Rep. Marissa Flores, Vice Speaker Joel Camacho, House Floor Leader Edwin Propst, Reps. Malcolm Omar, Manny Gregory T. Castro, Diego Vincent F. Camacho, John Paul Sablan and Roman C. Benavente.
The PUTC chairman, Rep. Vincent S. Aldan, was excused. Vice Speaker Camacho, the committee vice chair, served as its acting chair.
After Angello answered the questions of the House members, Castro moved to prepare a joint committee report recommending the nominee’s confirmation. All members of both committees voted yes.
The joint public hearing began with Special Assistant for Administration Oscar M. Babauta and Sirok expressing their support for Angello’s reappointment.
Babauta said the CPUC is an important regulatory body that oversees utility rates.
He said Angello has an extensive background, and has the credentials and dedication to serve on the commission. He is an exceptionally qualified appointee, Babauta added.
Sirok, for his part, said when he first arrived on island in 1979, Angello was already here.
Sirok said he knows Angello personally, adding that the nominee has the interest of the Commonwealth and its people at heart.
As the commission’s secretary and treasurer, Angello stepped in to keep the minutes and help with administrative matters, Sirok said. Angello, he added, has performed his responsibilities with due diligence.
FAC
Asked by Vice Speaker Camacho when was the last time the CPUC made a decision regarding the Commonwealth Utilities Corp.’s monthly Fuel Adjustment Charge or FAC, Angello said they had asked CUC to submit a FAC petition. He added that the CPUC has no money, hearing officer or a consultant. Nevertheless, he said they would have acted on any FAC petition from CUC and would have waited for the assessments to come in.
He said the commission is banking on the passage of House Bill 23-97, which would create a revolving fund for the CPUC. The bill has been passed by the House, and is pending in the Senate.
“We need to have freedom so we can get a consultant to review things like a petition for FAC adjustment,” Angello said. Without financial independence, he added, “we are handcuffed.”
Vice Speaker Camacho said he asked the question because his constituents want to know why the “FAC is so high” and “when is the CPUC going to step in.”
For the month of May, CUC said the FAC remains the same at $0.26469 per kWh.
The FAC is one of two components that make up the CUC electric rate, and is for fuel and fuel-related purchases. The second component is the CUC base rate, which has not increased since April 2014 and is used to fund operations, projects, debt services, or any non-fuel expenses.
Pursuant to an order issued by the CPUC, CUC is required to adjust the FAC pass-through rate when the “Mean of Platts Singapore” monthly pricing equals or exceeds a 4.5% differential of the average per gallon cost of fuel used in the calculation of the FAC rate.
