Senate committee debates bill to set special farm water rates; members seek CUC/CPUC analysis

The Senate Public Utilities, Transportation and Communications Committee opened discussion on July 9, 2025 in Saipan of Senate Bill 24‑02, a proposal to amend 4 CMC §8182–8183 to establish special agricultural water usage rates for commercial farmers, commercial renters and livestock producers to support food security in the CNMI.

Committee members and commenters reported written endorsements from local officials and conservation districts. The transcript records that Glenn Manglona (Saipan and Northern Islands Soil and Water Conservation District) and other local leaders supported the measure, citing that local agricultural production accounted for roughly 3 percent of needed food supply as of 2023 and that lower water rates could help boost domestic production.

A clerk or staff member read written comments from Mayor RB Komatsu and others supporting special water rates. The acting Public Utilities Commission chair, Dr. Giacangelo, filed comments raising concerns about differentiating rates between local and foreign commercial farmers.

Members pressed several technical issues during discussion: whether the rate would apply to treated or untreated water, how to prevent abuse if a special low rate were available, whether to cap the volume charged at the special rate before reverting to standard commercial rates, and the fiscal impact on CUC if the company had reduced revenue. The bill text discussed a rate of $0.25 per 1,000 U.S. gallons where 24‑hour water is available, or a flat $25 per month where 24‑hour water service is not available.

Several senators recommended inviting CUC and the Public Utilities Commission to meet with the committee for technical input before final action. One member suggested allowing CUC to promulgate rules under existing law but warned a low threshold could eliminate intended savings for farmers. Counsel advised that differentiating rates by citizenship could raise constitutional concerns; the counsel recommended a single rate for eligible farmers regardless of nationality, with eligibility verification handled administratively.

The committee did not take a final vote on SB24‑02. Members directed staff to solicit and compile technical comments from CUC and CPUC and to schedule a follow‑up meeting so the utilities can provide cost‑of‑service and operational analyses before any markup.

Committee members emphasized the bill’s intent to support food security while balancing water resource limits and utility financial stability.