By Emmanuel T. Erediano
[email protected]
Variety News Staff
REPRESENTATIVE Vincent Aldan said the Commonwealth Utilities Corp. should not use customers’ security deposits, adding that “it’s not fair, not reasonable and not responsible.”
The CNMI government, through Public Law 16-2, allowed CUC to use a portion of customers’ security deposits to pay for fuel expenses when the Commonwealth experienced a power crisis in 2008.
In a statement on Friday, Aldan, who chairs the House Committee on Public Utilities, Transportation and Communications, expressed concern that CUC may once again seek to use ratepayers’ security deposits as a “bailout” fund.
Aldan was reacting to CUC Board Chairman Allen Perez’s statement last week, in which Perez said the utility would ask the Legislature for authority to use customer security deposits as “short-term relief” in the aftermath of Super Typhoon Sinlaku.
Although his committee has not yet received an official request from the board, Aldan said, “There comes a point when the people of the Commonwealth must say, enough is enough.”
He said ratepayers’ security deposits are not CUC’s operating revenue, not fuel money, not emergency cash, and not a revolving bailout account “for failed management decisions.” He added that those funds are customers’ money, collected from families, retirees, small business owners, and households already struggling with the rising cost of power, food, fuel, transportation, and basic survival.
Aldan argued that residential security deposits are required to be placed in an interest-earning trust fund, are not to be used for any other purpose, and must be refunded within 30 days of disconnection, along with earned interest.
He acknowledged that CUC was once allowed to use up to 50% of residential security deposit funds for fuel expenses during a previous power crisis in the CNMI. However, he said that arrangement came with the condition that CUC return the funds within three years.
“Ratepayers should not be forced to subsidize mismanagement, weak collections, poor controls, unverified fuel costs, unpaid government accounts, and repeated emergency decisions that never seem to produce permanent reform,” Aldan said.
Before any customer security deposits are used, before any new bailout is approved, and before ratepayers are asked once again to carry the weight of CUC’s challenges, Aldan said the utility must undergo an independent audit conducted by utility experts, ensure full public disclosure, and implement a verified corrective action plan with strict protections for ratepayer funds.
“Ratepayers are not the bailout. Ratepayers are the people CUC exists to serve,” Aldan said.
Variety was unable to get a comment from CUC.
On Thursday, CUC Chief Financial Officer Betty Terlaje said the utility is running out of cash and fuel, warning that the CNMI faces severe disruptions to power, water, wastewater, communications, and public safety systems.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
