Some commercial customers not paying for using CUC sewer system

“These are customers with private wells or those dumping brine and effluent from their reverse osmosis systems into the sewers,” he said.

Malae said one has complained that their private well shouldn’t be metered.

If this customer chooses not to use the sewer system, he said, the customer must answer to the Division of Environmental Quality and pay CUC for the years of free sewer service.

Last year, the Commonwealth Public Utilities Commission  recommended that CUC bill private firms, especially hotels on Saipan, for wastewater services based on  actual usage.

CUC conducted an investigation into the commercial establishments’ use of the sewer system.

In its report, CUC noted that some commercial customers were paying flat fees for sewer service, ranging from $25 to almost $1,500 per month.

Malae said CUC has petitioned the CPUC to increase rates on a staggered basis starting May this year.

But he said the increase of rate “to the point of cost recovery is unconscionable.”

CUC Executive Director Antonio Muna said they need to collect $5.5 million from water and wastewater customers because of the electric usage of pumps and other waste water equipment that requires electric power.

To prevent “rate shock,” Malae said CUC’s power division may absorb the costs of pumping water and wastewater. 

But CPUC prefers to charge  sewer customers the full cost, he added.

In preparation for CPUC’s rate hearings next month, CUC is trying to determine exactly how many customers are using the sewer system, Malae said.

CPUC wants to be assured that the cost of sewer service is spread to all customers benefiting from the service, he added.

CPUC wants CUC to prove that all these customers exist, he said.

Moreover, CUC must demonstrate that its fees, including those for reconnecting customers or for bounced checks are just and reasonable, he added.

“There are about 200 questions to which we must respond to CPUC relating to sewer, water, power, finances and accounting,” Malae said.

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