Senate committee hears nominee James Mendiola on utility rates, renewables and island priorities

The Senate standing committee held a public hearing on the nomination of Jun James Mendiola Jr. to the Commonwealth Public Utilities Commission (CPUC), during which members and public commenters urged prioritizing services for the smaller islands, pressed CUC accountability, and questioned how renewable energy investments would affect rates.

Floor Leader Manlonia, who led questioning, said Mendiola’s finance and modeling background — including work on debt capacity, credit-rating and pricing models — would be useful to the CPUC and asked what he saw as the most pressing challenges for CNMI utilities. "What we can learn from the past, what we're doing in the present, and how we're gonna guide the future," Mendiola replied, saying he had reviewed CUC financial information from 2018 through 2025 and that "you can only make those decisions when you have enough knowledge and understanding." He told the committee his approach would be collaborative and data-driven.

On renewable energy, Mendiola said he has worked with clients in solar, geothermal and some wind projects and supports investment in alternative technologies but cautioned that such investments carry upfront costs and delayed payoffs. "While I believe in alternative energy... the problem is in a capitalistic society, there are costs associated with these things," he said, adding that timing and public communication about expected returns are critical.

Multiple speakers urged the commission to protect ratepayers. One committee member urged the panel to "prioritize the 2 smaller islands first" for implementation of new projects so smaller communities are not left behind. Floor Leader Manlonia and others also urged the CPUC to hold the Commonwealth Utilities Corporation accountable for past waste and procurement problems; Manlonia referenced reports that "what CUC owes DPW" could become a liability for customers and asked the commission to ensure rate increases do not unduly burden the public.

Senator Cabo welcomed Mendiola’s return to the CNMI and asked him to work with local leaders to ensure vendor standards, long-term efficiency and balanced rates so private partners, CUC and consumers each receive appropriate outcomes. "Our standards... are balanced where CUC gets their dividend, the private company gets theirs, as well as the consumers," Cabo said, urging cost-effective procurement and oversight.

The committee chair (unnamed) noted that all written testimonies will be included in the Senate standing committee recommendation report and forwarded to the full Senate for consideration during the confirmation process. The committee then closed public comment and a motion to conclude the hearing carried.

Next steps: the standing committee will compile written and oral testimony in its recommendation report and forward that record to the full Senate for a confirmation decision.