Senate hears history, payments and proposals tied to CUC–CEDA 2009 preferred-stock dividend

The Senate Public Utilities, Transportation and Communications Committee held an informational hearing Feb. 20 on the 02/2009 preferred‑stock agreement between the Commonwealth Utilities Corporation (CUC) and the Commonwealth Economic Development Authority (CEDA), reviewing the agreement’s history, current payments and previous legislative proposals to alter how dividends are used.

The discussion matters because the preferred‑stock arrangement and its dividends affect CUC’s operating costs, CEDA’s infrastructure funding and past legislative attempts to redirect the funds. Committee members sought detail on how much has been paid and how those funds have been used or pledged for other obligations.

Frank Rebaliman, chair of CEDA, told the committee past legislatures had attempted to remove the dividend obligation and that the topic prompted comments from CEDA’s board. “House Bill 23‑52 attempted to write off the whole obligation,” Rebaliman said,…