Commonwealth Utilities Corp. board chair Allen Perez pushed back against Rep. Vincent S. Aldan’s continued questioning of CUC’s finances, saying the utility has already incurred millions of dollars in storm-recovery expenses and asking how those bills would be paid without outside financing.
“The question that he cannot answer to this body and the community is in the absence of us coming out and finding a resource to pay off these expenses, then how are we going to pay these expenses?” Perez said during the Sept. 15 House-Senate conference committee meeting. “He has not brought to the table anything to provide funding for CUC to pay off these recovery expenses.”
Later in the hearing, Sen. Francisco Q. Cruz questioned why House members continued questioning CUC management when the House had already approved the underlying legislation and the conference committee was considering Senate amendments.
“This bill came from the House. It passed this year. The reason why we're here because of the amendment of the Senate, and if you don't agree with the amendment, this is the time that we have to go whether we agree with the amendment, but you did pass this legislation,” Cruz said.
The exchanges preceded the conference committee’s unanimous approval of House Bill 24-107, HD1, SD1, CC1, which would authorize CUC to obtain up to $40 million in emergency financing for utility restoration, stabilization, and fuel procurement following super typhoons Sinlaku and Bavi.
The House panel was chaired by Rep. Ralph N. Yumul and included Reps. John Paul P. Sablan and Aldan, with Rep. Marissa R. Flores as alternate. The Senate panel was chaired by Sen. Donald M. Manglona, with Cruz as vice chair, Sen. Manny Gregory T. Castro as member, and Sen. Corina L. Magofna as alternate. Manglona, Cruz, and Magofna were present for the final Senate vote.
The conference committee removed several Senate-added provisions that lawmakers said raised concerns under the CNMI Constitution’s two-subject rule. Conferees also removed provisions involving a waiver of sovereign immunity and a government surcharge while restoring a 10-calendar-day legislative notice requirement before closing.
Aldan challenged CUC to provide invoices and independently verified financial information supporting its request.
“Show us the real documents. Show us a verified independent audit of those books. That's it,” Aldan said.
Perez said CUC could provide the invoices but questioned what would happen afterward.
“The irony of his whole comment is I'm not exactly sure what he wants to see. We present a number as a summary. If he wants to see the actual invoices, I'm sure those could be provided to him,” Perez said.
Perez said the two super typhoons put CUC in an extraordinary financial situation.
“We're following the law to provide utilities at a cost recovery basis, and we were hit with an extraordinary event. Actually, we were hit with two extraordinary events,” he said.
CUC chief financial officer Betty Terlaje told lawmakers the proposed $40 million is a ceiling, not a spending target, and CUC would draw only what it needs as recovery work continues.
“The objective is not to maximize borrowing. The objective is to maintain enough liquidity to finish recovery without stopping critical work,” Terlaje said.
CUC officials said damage assessments following Sinlaku exceeded $75 million and invoices for expenses already incurred now total more than $40 million. The financing is intended to bridge the gap until Federal Emergency Management Agency reimbursements and other federal assistance become available.
Cruz later returned the discussion to the purpose of the conference committee.
“We're here to entertain, right, the amendment of the Senate,” Cruz said. “We don't have to keep on, you know, blaming CUC. They're trying their very best. Even me, I have a lot of questions with CUC.”
After the committee worked through the disputed provisions, all six conferees present voted for H.B. 24-107, HD1, SD1, CC1.
Aldan voted yes on the compromise despite saying earlier, “I do not support this bill one bit. At all.”
Cruz also took some time to make his vote known when the clerk called the Senate roll, with his name repeated several times before he responded yes.
Yumul thanked legislative staff and his Senate counterparts for working through the measure, while Manglona expressed hope the legislation would speed up recovery and reconnect residents still without electricity.
“Hopefully with this legislation, we can see a much more speedy recovery on our islands as well as being able to provide powers to the homes of people who have yet to be connected to the grid,” Manglona said.
“We look forward to passing this legislation in our respective houses,” he added.
The conference committee report will next go before the House and Senate.
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