We, the undersigned residents of the CNMI, express our grave concern over the extremely high cost of utilities, especially electricity, in the CNMI. Electricity rates in the CNMI are now the highest in the United States and all its territories. We strongly urge our elected and appointed leaders to investigate this serious issue that adversely affects the health, welfare, and livelihood of every person who resides in our islands.

For 46 years—since becoming a self-governing commonwealth of the United States—the CNMI Government has run its public utilities through the Commonwealth Utilities Corporation (CUC), which operates as a monopoly. As a government-created monopoly, CUC has an obligation to be fair and reasonable in the rates it charges public utility consumers (ratepayers).

Lack of Effective Oversight
Although the CNMI Public Utilities Commission (PUC) is tasked with regulating CUC's rates, its oversight in practice has been minimal due to inactivity until this year. While CUC should appear before the PUC in rate-setting hearings, utility consumers are not involved in the process, leaving their voices unheard. PUC’s inactivity, lack of scrutiny, and lack of rate regulation, allows CUC to remain unchecked, without regard for the financial burden it places on the people of the CNMI.

The Unjust Fuel Adjustment Charge (FAC)
For about two decades, CUC has implemented an additional charge known as the "Fuel Adjustment Charge" (FAC), previously called the "Levelized Energy Adjustment Charge" (LEAC). This charge, as implemented, goes beyond covering fuel-related costs and has become a mechanism for CUC to fund its high operational expenses, including executive salaries, travel, and other unnecessary expenditures.

CNMI consumers are painfully aware of this charge, as it often doubles their utility bills. For example, a regular electricity usage bill of $350.00 is typically accompanied by an FAC charge of around $700.00, resulting in an exorbitant total of $1,050.00. This unfair burden is placed on consumers, while essential institutions like the CNMI Government and the Commonwealth Health Care Corporation (CHCC) are given leniency when it comes to paying their bills.

Burden on Consumers
The situation reached a new low on September 27, 2024, when CUC agreed to offset over $10 million in unpaid government power bills. This "scratch my back, and I’ll scratch yours" arrangement between CUC and the CNMI Government leaves private citizens and businesses to shoulder the financial burden. Additionally, the CHCC owes CUC approximately $67 million in arrears and penalties. Although this bill is outrageous and questionable, any unpaid bills will eventually be passed on to ratepayers, who are already struggling with the highest utility rates in the United States.

Customer Service and Billing Frustrations
Many CNMI residents have also expressed their frustrations with CUC’s customer service and billing practices. Customers regularly encounter delays, confusion, and lack of support when trying to resolve billing disputes. The billing system appears outdated and inefficient, leading to mistakes that further compound the financial stress on residents. CUC’s failure to address these issues in a timely and professional manner only deepens public distrust, leaving many feeling unheard and unsupported in their efforts to manage soaring utility costs.

Human Resources Grievances
In addition to financial and customer service concerns, there are growing grievances within CUC’s human resources department. Employees have reported unfair hiring practices and a toxic work environment where their complaints and concerns are not addressed. The combination of unresolved HR grievances and unfair, inefficient management has led to widespread dissatisfaction among CUC employees, which directly impacts the services they provide to the public. We believe that for CUC to serve the community properly, these internal issues must be addressed with transparency and fairness.

Call for Action
Our elected leaders must investigate and rectify this deeply concerning issue. CUC, as a public corporation, was created to serve the people, not to impose unbearable financial burdens on them. This is an election year, and the people are watching to see if their leaders have the courage to stand up for what is right.

Enough is enough! We, the residents of the CNMI, demand that our leaders take the following actions:

1. Conduct a comprehensive, independent audit of all CUC financial accounts, including grants, budgets, spending, contract awards, and procurement processes. This audit must provide full transparency into the allocation and use of funds, ensuring that every aspect of CUC’s financial practices—including rate-setting, operational expenses, and vendor payments—is scrutinized. The audit should encompass a detailed review of grant disbursements and expenditures, procurement invoices, and the awarding of contracts to ensure accountability and eliminate any potential mismanagement or misuse of resources. This open-door review, in alignment with the Open Government Act, will offer full insight into the inner workings of the agency and foster trust between CUC and the public it serves.

2. Implement thorough evaluations of CUC's management and leadership. Leadership performance evaluations should involve feedback from employees and the public and be made available on the CUC website to promote transparency.

3. Involve the public and employees in performance evaluations of CUC leadership. By incorporating insights from those directly affected by CUC's operations, evaluations will be more comprehensive and reflective of actual performance. This democratic approach ensures leaders are held accountable and are responsive to the needs of the community they serve.

4. Involve the public in the PUC hearings, allowing consumers to present their views and participate in rate-setting decisions.

5. Examine and drastically reduce the FAC charge, which unfairly inflates utility bills and places an unreasonable burden on the people of the CNMI.

6. Hold CUC accountable for its high operational costs, including any sweetheart deals, excessive executive salaries, unnecessary expenditures, and perks or freebies, and ensure these costs are not passed on to consumers.

7. End the preferential treatment given to the CNMI Government and CHCC in terms of unpaid bills, making sure all ratepayers are treated equally.

Conclusion

We, the undersigned, implore you to take immediate action. The CNMI's future depends on affordable and fair utility rates for all residents and businesses. By signing this petition, we stand united in calling for transparency, fairness, and accountability in the management of our public utilities.