Legislative committee hears CPUC nominee on utility oversight and rates
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
James Y. Mendiola Jr., the governor's nominee to the Commonwealth Public Utilities Commission, told the House JGO committee he will rely on economic analysis and data to address utility rates; members pressed him about CUC's billing practices, a reported $9 million shortfall and recommended an independent utility audit.
The House Judiciary and Government Operations Committee held a committee‑of‑the‑whole session to receive and question James Ushio Miyahara Mendiola Jr., the governor's nominee to the Commonwealth Public Utilities Commission.
Jean Paul B. Regis introduced Mendiola as a candidate with a double major and an MBA and more than a decade of experience in corporate taxation and economic analysis at Price Waterhouse Cooper and KPMG. Mendiola told the committee he is "a numbers guy" who would gather and analyze CUC data, consult experts and seek efficiencies that could lower rates for ratepayers.
During questioning, members focused on long‑standing concerns about the Commonwealth Utility Corporation. One member described apparent problems with security‑deposit handling, the use of deposits to pay for fuel, missing interest payments and compounded penalties that can reach more than 50% of principal. The member urged an independent, professional utility audit — including operational and asset review, not just a financial statement audit — to determine whether systemic overcharging has occurred and to locate reserve funds.
Mendiola said he would start by obtaining figures from CUC and outside consultants, and expressed willingness to work with existing CPUC consultants and economists if confirmed. The chair notified the nominee that a 2:30 p.m. session was scheduled that afternoon for confirmation action in plenary and that a drug test included in his file had returned negative.
Committee members also raised telecommunications questions and a forthcoming broadband grant. Several members said the CPUC needs capacity both on the electricity side and the telecommunications side to protect ratepayers and to evaluate fuel‑adjustment clause (FAC) impacts. Mendiola acknowledged he has limited experience specifically with utilities in the CNMI but said his analytical skills would let him learn and work with technical experts.
The committee did not take a confirmation vote during the Jan. 16 meeting; members asked for follow‑up on CUC's $9 million shortfall report and indicated they expect the nominee to coordinate with CUC consultants and the CPUC's current members if confirmed.