Senate passes bill allowing emergency financing for Commonwealth Utilities Corporation

The Northern Mariana Islands Senate passed House Bill 24-107 HD1 as amended (SD1), authorizing the Commonwealth Utilities Corporation (CUC) to obtain emergency financing to restore utility services after recent super typhoons.

Senator Castro, who introduced the Senate draft amendment, described the bill as a measure to “leverage available resources” so CUC can secure lines of credit and loans to expedite recovery. The amendment package was accepted unanimously on the amendments vote; the final passage vote recorded all seven members present voting yes. "We amended a house bill because it was the fastest way to help the community," Castro said during debate.

CUC officials told the Senate that financing is urgent: CUC executive director Kevin Watson said the bill will "allow CUC to expedite our recovery efforts and help get the light back to our customers." CFO Betty Terlahi testified that approximately 4,000 customers across Saipan remained without electricity and that the financing authority would help obtain funds at lower cost and with less burden on ratepayers.

During floor debate, senators discussed lender demands, including requests for a waiver of sovereign immunity and identified collateral or dedicated revenue streams. Michael Earnest, speaking for CUC management, told the Senate that without statutory changes to address those lender conditions, "this bill is frankly pointless because we would not get the loans we need from ... the lenders that we were talking to." Senators noted the legislation’s intent is to provide CUC flexibility while emphasizing oversight by existing boards.

The bill passed the Senate in the form of the Senate draft. Next steps include transmittal to the House and any required implementation actions by CUC and relevant boards.