Oct. 1, 2007 — Senators spoke of subpoenas and of disbanding and reforming the Public Services Commission Monday evening in Frederiksted at a hearing of the Labor Committee.
Several people associated with the PSC and the Jeffrey Prosser bankruptcy proceedings failed to show at the hearing, including PSC Chairwoman Alecia Wells; Stan Springel, the court-appointed trustee now in charge of Innovative Communications Company; and ICC officials.
The meeting was called to look into the status of ICC’s retirement system and other issues connected to ICC’s ongoing Chapter 11 bankruptcy proceedings. In particular, the senators were concerned about multi-million dollar shortfalls in the ICC pension funds. (See "Pension Shortfall for Prosser Companies More Than Previously Reported.")
Each testifier gave different reasons for their absences.
“At the time of the hearing I will be traveling to Pittsburgh, Pa., to attend Tuesday’s emergency hearing in the bankruptcy court regarding Innovative,” Springel wrote. “I look forward to meeting with you in the future.”
The former ICC officials, Samuel Ebbesen and Holland Redfield II, both said they had unspecified business conflicts. Wells sent a letter declining to appear or to have anyone from the PSC appear. The letter does not give a clear reason, though Wells hints at some problem with the bankruptcy court.
“As you are undoubtedly aware, the pension obligations and liabilities of ICC operating companies is currently before the United States Bankruptcy Court for consideration," Wells wrote. "… Oversight and enforcement of a utility’s pension obligations is beyond the statutory powers of any regulatory agency such as ours. Federal rules … expressly entrust those duties and obligations to other federal and state agencies, and provide those agencies with substantially greater enforcement powers than can ever be afforded a regulatory body such as ours.”
Wells concluded the PSC would not be useful to the Labor Committee and declined to attend.
“For the reasons cited above, it is self-evident that participation in your hearing by anyone from our agency would contribute nothing of value to the Committee’s record in this matter,” Wells wrote, offering suggestions for other people the Senate should consult instead of her.
Union officials did show up.
“Personally I don’t know what we are here to testify about,” said Frederick Joseph, St. Croix sub-district director of the United Steel Workers of America. “I think we are five years too late. Five years ago we testified to this body and we told this body what was going on. We marched on St. Croix. … So what I can testify today is, yes, they owe us. I don’t know if you can find the money to fund the pension fund.”
Sen. Louis Patrick Hill asked Joseph what ICC told his union after its strike several years ago.
“We were promised that yes, they would fund the pensions,” Joseph said. “However, they said there was a loophole in the law where they are not required to do the full amount on an annual basis.”
“So in essence they ignored your request?” Hill asked.
“In my opinion they did not fulfill it,” Joseph said.
At this point, Hill said he felt some or all of the PSC members should be subpoenaed to appear, a move supported by Sen. Liston Davis.
“This response by Mrs. Wells is not a proper response to what I asked of her,” Davis said. “I asked also for their complete correspondence relating to the Innovative bankruptcy. So by tomorrow we will go ahead and subpoena the documents.”
Sen. Basil Ottley expressed concern that he had been denied entry to an executive session of the PSC in September, although he and Sen. Juan Figueroa-Serville are ex-officio members of the PSC. Ottley said he went to its most recent meeting but got turned away.
“I was told when I got there I was not welcome to stay,” Ottley said. “They had waiting for me an opinion from a 1990 civil case, and said this is why my presence as a legislator would somehow call into legal jeopardy some of the issues the PSC was engaged in regarding the bankruptcy case. I’m having legal counsel research it now.”
Ottley said he did not want to speak too broadly until he had received a legal opinion. But he did give his initial impression.
“That we have an organization that is willing to disregard the statutes of the Virgin Islands and disregard the authority of the Legislature — this is an issue we will have to address,” he said. “I think we need to talk to PSC and get a better handle on what their priorities are. At least ask the commission to get more training, so they have a better understanding of what their roles are. Perhaps more drastically, maybe we have to look for a new commission if we find these folks don’t have what it takes to conduct business and follow the statutes of the Virgin Islands.”
Sen. Ronald Russell expressed a similar sentiment.
“Why can’t we move every man out and make a new board?” Russell said. “The PSC was designed to prevent exactly what has happened with Innovative. They have failed in their duties to the customers and instead sided with the companies. And then write us a letter saying they aren’t coming. Meanwhile, the workers’ money is just going down the drain.”
No votes were taken at Monday’s hearing. The senators informally agreed to address the matter of subpoenas during Tuesday’s hearing of the Government Operations and Consumer Protection Committee on St. Thomas.
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