SAIPAN – Senator Celina R. Babauta is calling on the governor, utility regulators and legal authorities to reverse what she says is an illegal Fuel Adjustment Charge increase, alleging that the Commonwealth Public Utilities Commission and the Commonwealth Utilities Corporation violated an active executive order price freeze when CPUC voted Friday to lift the cap on the FAC.
The CPUC voted 3-1 to lift the FAC cap, raising the per-kilowatt-hour rate from $0.245 to $0.44489, according to the senator’s office. Babauta said the increase is a direct violation of Executive Order 2026-005, which she said instituted a strict price freeze on April 11, immediately before Super Typhoon Sinlaku made landfall.
Under the Consumer Disaster Price Freeze Act, codified at 4 CMC Sections 5141 through 5144, Babauta said an executive order carries the full weight of law and applies to vital commodities, including utility power. She said the law sets criminal penalties of up to $10,000 per violation and up to one year of incarceration, and civil penalties of up to $2,500 per individual violation.
“The decision by the CPUC to allow an increase to the Fuel Adjustment Charge (FAC) during a declared price freeze raises serious legal and ethical concerns,” Babauta said in a statement. “The CUC is not exempt from the law simply because it is a government utility. CUC sells a commodity, electricity and water, which are essential and it impacts every household, every business, and every struggling family in the Commonwealth.”
The senator said calling the change an “adjustment” rather than a “rate increase” does not change the impact on consumers, who she said are still recovering from the typhoon, “many without stable income, reliable utilities, or relief from rising living costs.”
“What we are witnessing is a complete breakdown of legal safeguards,” Babauta said. “An Executive Order is not a suggestion – it carries the full weight of law. By allowing a utility commodity price to double during an active price freeze, the CPUC and CUC have proven that the regulations meant to protect consumers can be bypassed at will. With zero enforcement and zero consequences, the CNMI is effectively operating as an island of lawlessness.”
Babauta urged the governor, CPUC and CUC leadership, and legal authorities to step in, reverse the rate hike and enforce the price freeze.