Ratepayers and lawmakers urged the Commonwealth Public Utilities Commission to hold the Commonwealth Utilities Corp. accountable for millions in unpaid bills, operational inefficiencies, and billing problems before approving proposed increases in power, water, and wastewater rates.
At a public hearing last Oct. 19, former CUC executive director Tony Muña questioned the utility's reported outstanding receivables, saying paying customers should not shoulder the burden of those who fail to settle their bills. According to CUC legal counsel Tina Ngo, the outstanding receivables and arrears are approximately $60 million.
“I recommend that you ask CUC to withdraw its request for an increase,” Muña said, urging the utility to first collect overdue payments.
Rep. Marissa Flores similarly called for an independent audit, resolution of billing disputes, and the return of what she described as $4.3 million in excess fuel cost collections before approving additional charges.
“Before we pay, show us,” Flores said.
She said families already struggling with rising fuel costs, reduced government work hours, and storm damage could hardly afford another increase.
Resident Adam Golden questioned the affordability of higher rates and CUC's customer service, recounting how he spent hours resolving a billing problem after his payment was credited to the wrong account.
“How can we increase the rate but not increase the service?” Golden asked.
He also questioned why CNMI households should pay utility rates comparable to Guam and Hawaii despite having substantially lower household incomes.
“This is not a luxury. This is a need,” Golden said.
Sen. Corina Magofna, meanwhile, questioned whether ratepayers would be reimbursed if CUC imposed a temporary typhoon recovery surcharge and subsequently received reimbursement from the Federal Emergency Management Agency.
“Essentially, the rate payers are fronting the money, right?” Magofna asked.
A CUC representative acknowledged that the surcharge would serve as temporary financing for restoration and that ratepayers would receive a rebate once federal reimbursement was received.
Mariano Iglesias also opposed the proposed increases, citing operational inefficiencies and substantial water losses across Saipan, Tinian, and Rota.
“Please do not give CUC three years of rate increases without three years of accountability,” Iglesias said.
CUC rate consultant Dan Jackson defended the proposal, saying the utility incurred approximately $128 million in expenses against $104 million in revenue in 2026, leaving a $24 million shortfall.
Jackson said CUC has gone more than a decade without increasing its base rates despite rising operating and maintenance costs.
Under the proposal, an average residential customer using 500 kilowatt-hours of electricity and 5,000 gallons of water monthly would see a combined bill increase from approximately $278 to $308 in December 2026 and $347 in December 2027.
Customers receiving wastewater service would face larger increases.
Jackson said additional revenue is necessary to improve maintenance, reliability, and CUC's financial position.
The proposed increases remain subject to CPUC approval. Additional public hearings are scheduled for Tinian and Rota, with CPUC expected to decide on the proposal Nov. 20.
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