060308 mv
AFTER RAISING THE POWER RATES TO ALMOST 4 TIMES THE AMOUNT THIS IS WHAT IS HAPPENING;


POWER OUTAGES:
THURSDAY; 8-10PM
FRIDAY; 8-10PM
SATURDAY: 8-10PM
SUNDAY: 8-10PM
MONDAY: 9AM-11AM, 1PM-2PM, 8:36PM-10:30PM

CUC: Cylinder, turbocharger problems cause power outage Tuesday, 03 June 2008 00:00 By Raymond A. Martinez - Variety News Staff THIRTY percent of the island suffered power outage yesterday as two engines at Power Plant 1 experienced mechanical breakdown, leaving only two engines running to service the rest of the
communities.
This is according to Commonwealth Utilities Corp. Executive Director Antonio S. Muna.
Muna explained that engines #3 and 6 were down due to mechanical problems.
Engine #3, he said, experienced abnormal sound on its cylinder #16, while engine #6 was down due to presence of water in the turbocharger lube oil system.
CUC report says unit #3 needs valve replacement and unit #6 needs further inspection with its turbocharger cooler.
Engines #3 and 6 were secured yesterday, but are still under observation by the power plant crew.
Muna mentioned that engines #2 and 8 were the only power units that were operating yesterday with a combined capacity of 13 megawatts only.
CUC implemented load shedding from 8 a.m. until 12 midnight, affecting the entire grid of Kiyas 1 and 4, Feeders 7 and 4.
San Vicente, portions of Papago, Upper and Lower Dandan, Isley Field, Upper Gualo Rai, Chalan Kiya, Oleai, San Jose, Garapan, Koblerville, As Gonno, San Antonio, Capital Hill, Kagman, Achugao, San Roque, Afetnas and several other places were affected.
Water services and traffic lights were also down in yesterday’s power outage.
Last week CUC announced that high atmospheric temperature and overheating radiator has paralyzed two of its power plant engines which caused power service interruption island-wide.
Gary P. Camacho, CUC’s power division acting manager, said they will repair a defective air break system on Feeder 3 near the Gualo Rai intersection today.
“The repair of this equipment will allow the crews to isolate specific areas of the grid to perform systems maintenance and minimize future feeder outages,” Camacho explained.
Feeders 2 and 3 will be taken offline from 8 a.m. to 10 a.m.
Other Feeders that will be affected in today’s outage include Kiya 1: Second Partial, Feeder 1: Laterals, entire grids of Feeders 4 and 7, and entire grids of Kiyas 1,







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we're not gonna take it

ROLLING BLACK OUT"S

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OUTAGE November 19, 2007...lower dandan.

OUTAGE November 20th, schedule to go off in some parts of the Island.

OUTAGE November 21th, 2007 HITS KAGMAN

EMERGENCY BLACKOUT HITS SAIPAN November 21st, 2007 5pm without announcement.

ROTATING BLACKOUTS ARE BACK November 23rd, 2007
Feeder 4 - 1 in the morning and another from 7pm-9pm.

OUTAGE: November 25th, 2007
Feeder 4 - 1 at midnight and another at 7-9pm.

OUTAGE: November 26th, 2007
Susupe, Feeder 4 7-9pm & midnight for 2 hours.

OUTAGE: November 27th, 2007
Feeder 4 morning hours




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HERE WE GO AGAIN

Local Sunday, March 30, 2008 Fate of power rate repeal now lies with Senate By Agnes E. Donato Reporter House members are counting on the Senate to pass a bill repealing a law that reduced power rates in the Commonwealth. Rep. Tina Sablan, one of bill's sponsors, said yesterday that passing the bill is a difficult political decision, but it “needs to be done.” “I am hopeful that they [senators] will see the gravity of the situation and act expeditiously,” Sablan said in an interview yesterday. Rep. Heinz Hofschneider, also a sponsor of the bill, expressed the same hope. “Everyday that we don't act to repeal that law means CUC will continue to burden the general fund,” he said. House Bill 16-79 passed the Lower House with a 17-1 vote on Thursday. Rep. Stanley T. Torres voted against the bill. Representatives Oscar M. Babauta and Ralph Torres were not present. The bill proposes to repeal Public Law 15-94, which forced power rates down to 17 cents per kWh in October 2007, and reduced or scrapped other charges for residential customers. The law, compounded by the rising cost of fuel, has caused the Commonwealth Utilities Corp. to face a shortfall of about $1 million each month for fuel alone. Due to the shortfall, CUC for instance failed to pay for a full 30-day fuel supply last month. Power outages are now occurring partly because CUC is stretching to last for 30 days the 23-day supply that it managed to purchase. Hofschneider said that the repealer bill would not only allow CUC to pay for full fuel deliveries, but also reduce government subsidy to the utility. In addition, Sablan argued, the customers would not lose much if P.L. 15-94 was repealed. The law, she noted, has not been of any real benefit to the customers, since emergency regulations were adopted to give CUC flexibility in setting the fuel component of the power rates. House Bill 16-79 will become law once approved by the Senate and signed by the governor. Photo Sharing and Video Hosting at Photobucket
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Sunday, December 30, 2007

LET US BRING YOU BACK A YEAR!

January 1st, 2006

Power crisis reveals lingering CUC woes

Faced by recurring blackouts stemming from a lack of fuel supply and owing to the Commonwealth Utilities Corp.'s rock bottom cash situation, Gov. Juan N. Babauta declared a state of emergency on utilities during his State of the Commonwealth Address on May 19 this year.While the intention was considered noble-which was to ensure a stable power supply-the governor's declaration was much criticized, especially by the political opposition, since his action attested to the severe financial crisis of the government, on the face of his much-parodied insistence that the state of the Commonwealth was “still pretty darn good.”The declaration lasted not for a month or two but seven whole months, or just weeks before the end of the governor's term. Meantime, immediately following the emergency declaration, which placed the entire CUC under the direct supervision of the governor, the government obtained a commitment from CUC's lone fuel supplier, Mobil Oil Marianas, to deliver a month-long supply of fuel.At the same time, negotiations between the government and Mobil continued for a long-term fuel supply contract.This negotiation, headed by Lt. Gov. Diego T. Benavente and governor's advisor Adam Turner, culminated with the signing of a two-year contract with Mobil in early June 2005, amounting to at least $60 million.Mobil's previous contract with CUC expired on April 30.Due to CUC's pitiful fiscal condition, it could not arrange for another contract with the fuel company by itself.Then CUC executive director Lorraine A. Babauta cited that the rising cost of fuel has taken its toll on CUC, and the governor was needed “to step in and assist in any way possible to make sure that a fuel contract is executed at the earliest possible time.”“That's basically what's been keeping us from moving forward,” the CUC official had said.She cited that CUC fuel costs have risen from $30 million annually to $60 million in 16 months.REPROGRAMMING With the emergency declaration came the reprogramming of funds and the hiring of “consultants” to arrest the power crisis, which was later discovered to be caused not only by the lack of fuel but the neglect and poor maintenance at CUC's power generation plants in Lower Base.From May 19 to October 2005, the governor reported the reprogramming of some $5.1 million in local funds and $2.6 million in federal funds. Later, the governor said that the Marianas Public Lands Authority had also chipped in by reprogramming $1 million for CUC.Recently, CUC reportedly said that it received an additional $1 million from the administration. It was expecting some $500,000 from the administration as of last week.LEGISLATURE OKS REPROGRAMMINGA week after Babauta declared the emergency, the House of Representatives, headed by opposition Speaker Benigno R. Fitial adopted House Joint Resolution 14-36, granting the governor 100 percent authority to reprogram any available local funds to remedy the power crisis.The measure, which was introduced by Fitial himself, also passed the Senate shortly.“The Legislature supports the governor's declaration of state of disaster emergency. It is the intent of the Legislature to authorize the governor 100 percent reprogramming authority from available Commonwealth funds to remedy the power generation problems,” reads part of the resolution.The resolution, however, prohibited the governor from entering into any public debt without the approval of the Legislature, as provided in the CNMI Constitution Article 10, Section 3. This came about after learning that the Executive Branch and CUC entered into a $10-million letter of credit with the Bank of Guam following the May 19 emergency declaration.Babauta said, though, that the standby letter of credit with BoG is not public indebtedness, pointing out that CUC is a semi-public corporation that has its own assets. In the end, the administration said Mobil's new contract incurred no new long-term credit with the bank.It said that the new fuel contract called for a cash guarantee to Mobil of $7.5 million. This guarantee was made by securing CUC funds that were “already in the Bank of Guam” against fuel purchases.Authorities said the CUC has some $9 million in restricted funds at BoG.NEGLECTED GENERATORSAfter the fuel contract was secured, CUC's Lorraine Babauta revealed that the maintenance of engines “also remains a serious issue.”She said in early June that renovation and other improvements on existing engines would cost over $2 million.KUMOI'S CONTRACTExpressing possible abuse of authority under the emergency declaration, the political opposition revealed that CUC had entered into consultancy contracts with former senator and former CUC executive director Ramon “Kumoi” Guerrero and California-based electrical engineer Roger Kitchingham to fix CUC's engines.Initial documents showed that CUC approved a $21,000-purchase order for Guerrero and a $20,000-agreement for Kitchingham for the repair of CUC power plant II, which is adjacent to the main power plant, Power Plant I.Before this, Guerrero had secured a separate $50,000-consultancy contract with the Governor's Office for the La Fiesta complex.The former senator's entry as Babauta's consultant during an election year was put under close watch since he was previously associated with the opposition, particularly with Fitial. “We need to watch carefully to make sure that what is actually done is in the best interest of taxpayers and public utilities, and not patronage or political maneuvering using taxpayers' funds,” Fitial's spokesman, Charles Reyes, had said.But the opposition only had to wait for a little time as Guerrero's power plant consultancy was not for long.On Aug. 1, shortly after finishing his contract or the non-renewal of it, Guerrero was the guest of honor at a House panel's public hearing, lashing out at CUC's “incompetence” in handling the power generation business.Guerrero expressed his anger over Attorney General Pamela Brown's so-called interference, which he said was causing the delay in the repair of engines.The AGO refuted this, alleging that it was Guerrero who tried to manipulate CUC and overlook procurement rules to sole-source contracts.FUEL SURCHARGEThe Legislature, initiated by the House leadership, moved to repeal the fuel surcharge fee, which the CUC had imposed effective March this year on all CUC customers.The measure, House Bill 14-343, authored by Vice Speaker and former CUC executive director Timothy Villagomez, aims to repeal the law, 4 CMC section8148 (b) , which gives the CUC board the authority to impose up to 3.5 cents fuel surcharge per kilowatt hour.Despite public clamor for its repeal, Gov. Babauta vetoed the bill, retaining the fuel surcharge.Before this, the governor asked the Legislature to appropriate funds for CUC if it wants the bill enacted into law. Babauta said that while he sympathized with consumers, he said that removing the fuel surcharge without an alternative fund would mean the collapse of the local utility firm.He challenged the Legislature to appropriate $31 million to let CUC buy fuel to run the power plants in the next 15 months, appropriate funds to pay CUC debts (amounting to some $18 million), and appropriate funds for government utilities.The Legislature only appropriates $5 million for utilities annually. The government, however, paid a total of $12 million to CUC as of early September 2005.PRIVATIZATIONDuring the emergency, CUC also pursued the proposed privatization of power generation.As of July, CUC privatization consultant, Dennis Swann of Harris Group, said that a privatization contract would be signed in less than two months. This, however, did not materialize following a financial audit review of two proposers: Telesoure and Rolls Royce.After the Nov. 5 elections, the governor, likewise, echoed the position of the Saipan Chamber of Commerce that it was impractical for the CNMI government to commit itself to a 20-year privatization program in view of skyrocketing oil prices.He also said that in 20 years, there may be a cheaper alternative to fuel.The privatization called for the takeover of the eight-engine Power Plant I in Lower Base, its rehabilitation and upgrade to meet environmental standards, and installation of two new 15MW generators. The contract would allow the private company to operate the machines for 20 years.HOUSE OPPOSES REPROGRAMMING After three months of continued emergency, the House of Representatives changed its position on the reprogramming of funds for CUC. In a resolution, the House now accused Babauta of illegally reprogramming funds to CUC.The House demanded that the governor submit to the Legislature a complete financial analysis of his alleged illegal diversion of funds.The House also asked the Office of the Public Auditor and the Attorney General's Office “to investigate the illegal use of public funds by the governor.”These demands are contained in House Joint Resolution 14-42, which the House adopted during its session in early September.It cited that, under the law, 1 CMC subsection 7402 and 1 CMC subsections 7302 and 7403, “no funds may be reprogrammed, and no obligation or contract for the expenditure of Commonwealth funds shall be made for any purposes other than the public purposes for which the funds are appropriated.” It said that the law also provides that “no Covenant funds may be reprogrammed or otherwise transferred or borrowed from capital improvement and economic development accounts to government operational accounts.”It further said that the governor is only allowed by law to reprogram up to 25 percent of funds appropriated by the annual appropriation for the operations of the government.Any reprogramming that exceeds the 25 percent limit shall be subject to prior approval by the Legislature, the House said. Press secretary Peter A. Callaghan countered this by saying that the governor could have not done any illegal reprogramming because he has that authority under an emergency situation.Further, he said that the Legislature gave him 100 percent reprogramming authority to address the CUC power crisis. EMERGENCY ENDEDOn Dec. 13, the governor announced his decision to end the seven-month state of emergency and return the management of CUC to its board of directors effective Dec. 16.Without the state of emergency, the Governor's Office will no longer have the authority to reprogram funds from other government services to subsidize CUC's fuel purchases and other expenses.Two tankers are due to deliver power generation fuel on Jan. 8, 2006, requiring about $6.8 million in payment from CUC. The governor said that the government could raise only up to $2.5 million for CUC by end of December.Babauta's last day in office is this Friday, Jan. 6. His political opponent, Gov.-elect Benigno R. Fitial, will be inaugurated on Jan. 9.Babauta believes that, under his last trying year in office, he managed to rescue the CUC power plants from near collapse.He said the Commonwealth “is no longer threatened by a catastrophic collapse of the utility system.”Right now, CUC generates approximately 68 megawatts of power, just enough to meet peak demand. By design, Power Plant I has a capacity of 81.2MW, Power Plant 2 has 15MW, and Power Plant 4 in Puerto Rico has 17.5MW.Power plant 3's three engines, which have a capacity of 4.5MW, are all currently down.CUC plans to revive Power Plant 3 and relocate it from the airport area to the main power plant in Lower Base.

Sunday, November 25, 2007

3 more La Fiesta copper wire suspects arrested

mv-Monday November 26, 2007 By Cherrie Anne E. Villahermosa Variety News Staff

THREE other La Fiesta Mall copper wire suspects have been arrested and were brought to Superior Court last week.
Associate Judge David A. Wiseman signed a seal order on two of the suspects on Friday afternoon.
Only the case of Jeff C. Magofna, 26, was not sealed.
He and the two other suspects were arrested on Thursday and brought to court for a bail hearing on Friday afternoon.
Magofna and the two other suspects were remanded to the custody of the Department of Corrections after the hearing.
The three were ordered to appear in court for a preliminary hearing on Nov. 30 and arraignment was set for Dec. 3.
The identity of the suspects was revealed to the authorities when their co-defendant, 18-year-old John Santos Jr., was arrested on Tuesday after he was caught at the La Fiesta III building in San Roque with individuals who were loading copper wire into a pickup truck.
Santos, the son of Department of Public Safety Boating Safety commander Sgt. Bernard Santos, was placed under house arrest and released from custody through a third party custodian.
The government said Santos cooperated with the ongoing investigation and identified the individuals as Magofna and the two other suspects.
Magofna was arrested for criminal mischief and theft.
DPS stated that a police detective was doing a routine patrol at the La Fiesta III building in San Roque on Tuesday at 1 p.m. when he saw a green Toyota pickup truck parked near the building and two men loading rolls of copper wire into the bed of the truck.
When the officer approached them, two suspects fled on foot along with another suspect who had been in the building.
The responding officer was able to detain the fourth suspect, John T. Santos, who was acting as a lookout.
Police discovered that an undetermined amount of copper wire had been cut from the former shopping mall.
DPS said they recovered 15 rolls of copper wires from the truck.

Saturday, November 24, 2007

Letter to the editor: Taotao Tano, H.B. 15-246 and P.L. 15-94

mv-Friday November 23, 2007

I KNOW I have some explaining to do here, but I am an elected public servant and part of my elected duty is to ensure that I provide such accurate information and I can when going public with my opinions.
First, I am trained to listen, and I accept criticisms as a public servant, and I will engage in any retaliatory mode of public criticism because I know that if I make mistakes, I will humbly accept responsibility and try to correct them. However, I will react and respond to any unreasonable, unjustifiable and unfair accusations, in order to enlighten the truth of the matter and not contribute to misinformation and confusion in the community.
Therefore, let’s clear the record here so the people can get the benefit of accurate public information in order to make some good judgments.
Let me take you, Mr. Guru Cruz, back to Oct. 3, 2007, when you and members of the Taotao Tano were sitting in the House gallery anxiously waiting for us to override the governor’s veto of House Bill 15-246. Like you stated in one of your news articles, when you claimed that it was the Taotao Tano’s insistence that the Legislature overrode the governor’s veto, yes, we all were united on this issue and wanted the override because we all felt it was necessary for the people.
Let me also remind you in case you have forgotten that the House unanimously voted for the override with 16 voted yes and 2 members absent. The Senate then overrode the same veto on Oct. 4, 2007 in Rota with 8 members voting yes and one member absent. Of the 27 members of both houses in the 15th Legislature, 24 voted for the override, and this override included your voice for the people, many CNMI residents, and the rest of the Taotao Tano. If what you said is true that your association represents the voice of the people, then this is a testimony that this override was necessary and was the right thing to do for the people. Please try to keep yourself focused on what and how things transpired, and then decide where you stand. You can’t be in two places at one time.
Furthermore, please note that the current proposed increase in the electric rate by the governor, is the emergency regulation proposed to be implemented by the “Customers Using Candles,” also known as CUC. The governor did not invoke his emergency power like you claimed in your letter. But even so, this proposed emergency regulation is still in violation of Public Law 15-94. But of course, with all the legal scientists in the governor’s office, he will still disagree with us. Then he will continue to publicly profess that he is very much willing to work with the Legislature, like Charles continues to repeat himself. This will be a good definition of your favorite word, DECEPTION.
Mr. Cruz, I firmly believe that the best possible way that we in this poor CNMI can solve some of our problems and move forward toward economic recovery is when we have peace among ourselves and work together in unity and harmony. I want you to know that the newly elected Republicans are trying to do just that. We have a consensus that the hard working Minority Leader Rep. Arnold I. Palacios will be our next speaker for the 16th Legislature. Even the Honorable Rep. Stanley Torres happily consented to this choice. So please try not to disrupt this peaceful process. Please try not to single out people in your praises or accusations because I believe we’re all in this together whether you like or not.
By the way, I wonder why are you guys so obsessed with only the Legislature? Don’t you think everyone is equally responsible in the quest to find solutions to our problems? You are beginning to sound like T.H. & A. the other three Goros, duh. Please quit contributing to the glory of, you know who.
Greg, I don’t know if you realize that you have tremendous leadership potential. You probably won’t believe it but people are talking all over the island about how much potential you have. But they strongly recommended that you learn the Art of Listening to more realistic advice so that you may nourish and nurture your potentials. Try to be more discrete and prudent in your choice of words. You will begin to realize that you are more mature and diplomatic, and by the time the year 2009 kicks in, then you’re good to go. Don’t forget that you are a public figure. See you later. Oops, don’t forget to take the P.I.O. with you.
REP. CANDIDO B. TAMAN
Capital Hill, Saipan

Friday, November 23, 2007

Rotating blackouts are back

mv - Friday November 23, 2007 By Gemma Q. Casas Variety News Staff

SAIPAN residents marked Thanksgiving yesterday with the return of two-hour rotating blackouts because the Commonwealth Utilities Corp. could not produce enough electricity.
CUC said one of its major engines is down and the situation could go on indefinitely if the cash-strapped government fails to come up with enough funds to buy fuel for the power plants.
Anthony Guerrero, CUC’s executive director, said with fuel now going for close to $100 a barrel, the CNMI has to pay even more because of its remote location.
Mobil Oil sells diesel fuel to CUC at $105 per barrel, according to CUC spokeswoman Pamela Mathis.
She said the damaged 7-megawatt engine no. 2 at power plant 1 remains down.
“It hasn’t gotten any better,” she said, adding that it will take several days before the engine is back on line. “We started the load shedding (on Thursday) at 11:30 a.m. It will go on until further notice.”
The next fuel delivery for CUC is scheduled for next week.
Guerrero said although CUC will start charging residential customers higher rates through the emergency regulations implemented on Nov. 2, they won’t be able to get that revenue until next month.
“The revenue from that emergency regulation won’t be realized until the first billing cycle in December. We have another tanker before the end of the month,” he said.
“We’re concerned because between now and the tanker arrival, the revenues from the reduced rates are what’s coming in on our billing process. And as we’ve said before, it’s reduced revenue and so we will be going to the governor and asking him to cover whatever shortfall we have,” he added.
Mobil delivers fuel from Singapore to CUC every 22 days.
Mathis said CUC has notified Finance Secretary Eloy Inos about the situation.
She said the governor is not allowed to reprogram funds for CUC because it is an autonomous agency.
Guerrero said CUC is now awaiting the governor’s decision on its request for fuel subsidies.
“We basically asked for assistance from the governor. As to how the governor will provide that assistance to CUC, whether that will require that he again institute a state of emergency, that will be for the governor and his advisers to decide,” he said.
The load shedding schedule for Saipan is as follows:
11:00 – 1:00 Kiya Two - Second Partial of the Grid At the Mobil Gas Station in Koblerville, Afetna, San Antonio, and Chalan Piao.
1:00 – 3:00 pm Feeder One – Lateral Streets within Partial of the Grid The Anaks Condos, China Town, DFS (and the street behind DFS) Mariana Heights Business Complex
3:00 – 5:00 pm Feeder Two - Second Partial of the Grid Along Beach Road in Garapan from Kristo Rai to Chalan Laulau
5:00 – 7:00 pm Kiya Four North Chalan Kanoa (post office and main streets from Saipan Community School)
7:00 – 9:00 pm Feeder Four - Second Partial of the Grid Capitol Hill on the 1200 Block, Homestead area, Talafofo, As Teo, Papago and Kagman I, II, III. • 9:00 – 11:00 pm Feeder Seven Lower Base industrial area, north to Tanapag, Achugoa, San Roque, and As Matuis to Marpi.

Wednesday, November 21, 2007

Emergency blackout hits Saipan

mv-Thursday November 22, 2007 By Gemma Q. Casas Variety News Staff

A POWER outage occurred again for the nth time on island without announcement shortly after 5 p.m. yesterday because one of the engines at the main power plant malfunctioned.
The power went back after an hour in some areas as of press time but it might go on for sometime in Capital Hill area, according to Commonwealth Utilities Corp. spokeswoman Pamela Mathis.
She said the 7-megawatt unit no. 2 at power plant 1 was taken offline because water was leaking into its oil system.
CUC will extend the emergency blackout to areas where there is less traffic if the need arises, she added.
“We’re really trying to maintain power at all traffic lights (for safety reason),” she said.

Outage hits Kagman

st- Nov 21, 2007 By Ferdie de la TorreReporter

Outage hits Kagman
As rain, winds damage power wires, equipment


Kagman experienced an outage yesterday afternoon when the Commonwealth Utilities Corp. conducted repairs on the electrical wires and equipment that were damaged during Monday's strong rain and winds brought by a trade-wind disturbance.CUC linemen turned off the electric power in Kagman after school or at 3pm as they made the repairs.CUC spokesperson Pamela Mathis said electricity will be restored as soon as the lines are clear of danger.Mathis underscored the need to conduct such repairs before major power failures occur.In addition to Monday morning outages in southern Saipan, CUC also fixed damaged equipment in Dandan, Capital Hill, As Matuis, and Koblerville.A number of trees fell on high voltage lines and took the lines down in several locations during the heavy rains.There were isolated minor outages yesterday as CUC field crews made repairs.Mathis issued the following safety measures for the public to observe during heavy rains:- Customers and children should never touch a fallen power line and always call for help. Electricity may still flow through downed lines.- Parents should not allow children to play in wet trees that are anywhere near high voltage lines because the electricity can also flow through wet vegetation.- If power lines fall on vehicles, stay inside the car-never get out until the CUC personnel advises that it's safe.- Any time a home floods or fills with water, unplug all appliances or cords along the floors or baseboards.

Tuesday, November 20, 2007

Public Law 15-94 deception

st-Wednesday November 21, 2007 Letters to the Editor
Tuesday, November 20, 2007

To the Legislature:It is with such displeasure to inform you-our leaders-that deception in public office is a crime and is not tolerated lightly. We have spent well over five months pursuing what was good for the people of the CNMI and when we achieved it, something went drastically wrong. All of you had the opportunity to review our proposal of rate change on July 2 and 3, which the Senate president accepted as a working document toward H.B. 15-246, a bill to lower the rates introduced and authored by the minority leader Arnold Palacios. In our proposal we specifically requested further amendments be made, especially the removal of Section 18 thru 22 in the original House bill. The reason why we requested such an amendment is due to the fact that there was no Public Utilities Commission in place and the differences between the Executive branch and the legislative body on appointing a board was an issue hindering the process. At this point we do not believe that appointing anyone to the PUC board can be achieved because of the fact that no one in their right mind would dare take on such a responsibility since, in the end, he or she will be blamed for any wrong move. Although it is an honorable appointed position, we believe that one's credibility and integrity can be forever tarnished in the public view given the present situation of CUC. We are also mindful of the current high global fuel prices all over the world but that alone is not a basis as to why the people of the CNMI were deceived and taken advantage off. Furthermore, to you Mr. Arnold Palacios, we feel that you are the primary person responsible for this current situation we are faced now and we must seriously notify you that you have deceived the people of the CNMI, especially the voters. I respectfully urge you to prioritize CUC's shortfall as promised rather than concentrate on your speakership fight with Benavente. Concerning the speakership, we the people feel that none of you are qualified or even deserve to sit on such an honorable position. Therefore we recommend Congressman Stanley Torres to be Speaker of the House for he is a great leader who cares, understands that the people are suffering and he fights for the people. Gentlemen, we urge you to deliver and return what was promised to the people before the election. A home was burned down because of the use of candles and why is such a mishap happening near Christmas And New Year?

Gregorio S. Cruz Jr. President, Taotao Tano CNMI Association, Inc.

Outage hits Kagman

mv- Local Wednesday, November 21, 2007 By Ferdie de la TorreReporter

Kagman experienced an outage yesterday afternoon when the Commonwealth Utilities Corp. conducted repairs on the electrical wires and equipment that were damaged during Monday's strong rain and winds brought by a trade-wind disturbance.CUC linemen turned off the electric power in Kagman after school or at 3pm as they made the repairs.CUC spokesperson Pamela Mathis said electricity will be restored as soon as the lines are clear of danger.Mathis underscored the need to conduct such repairs before major power failures occur.In addition to Monday morning outages in southern Saipan, CUC also fixed damaged equipment in Dandan, Capital Hill, As Matuis, and Koblerville.A number of trees fell on high voltage lines and took the lines down in several locations during the heavy rains.There were isolated minor outages yesterday as CUC field crews made repairs.Mathis issued the following safety measures for the public to observe during heavy rains:- Customers and children should never touch a fallen power line and always call for help. Electricity may still flow through downed lines.- Parents should not allow children to play in wet trees that are anywhere near high voltage lines because the electricity can also flow through wet vegetation.- If power lines fall on vehicles, stay inside the car-never get out until the CUC personnel advises that it's safe.- Any time a home floods or fills with water, unplug all appliances or cords along the floors or baseboards.

Sunday, November 18, 2007

Chalan Kanoa house fire an accident CORRECTION "Chalan Laulau"

mv-Monday November 19, 2007

By Cherrie Anne E. Villahermosa
Variety News Staff



A fire that damaged a home in Chalan Laulau on Thursday evening was an accident, according to Department of Public Safety spokeswoman Lei Ogumoro.

She said a candle used to light the kitchen of a house, which had no electricity, was the cause of the fire that damaged the wood and tin structure.

Ogumoro said no one among the nine family members was hurt in the fire on early Thursday evening.

The candle in the kitchen was placed on a cooler and the family members — five adults and four children — were all outside when they saw their kitchen engulfed in flames.

They tried but failed to extinguish the fire.

Because the structure was made of plywood, the fire was able to spread rapidly throughout the house.

But firefighters dispatched to the scene were able to bring the fire under control and secure the area.

DPS said the incident has been classified as an accident.

The owners of the structure are Gregorio and Tricia Mettao.

CUC employee pleads guilty to misconduct

mv-Monday November 19, 2007


--------------------------------------------------------------------------------

CUC employee pleads guilty to misconduct

By Cherrie Anne E. Villahermosa
Variety News Staff



A COMMONWEALTH Utilities Corp. employee who was charged for stealing money from a customer has pleaded guilty to misconduct in public office.

Manuel Quitano Camacho, 42, appeared for a change of plea hearing on Friday before Associate Judge Kenneth L. Govendo.

Camacho was represented by attorney Brien Sers Nicholas.

Assistant Attorney General Mike Nisperos agreed to dismiss the theft by deception charge with prejudice in exchange for Camacho’s plea.

Govendo accepted the plea and sentenced Camacho to 60 days of imprisonment, all suspended, except for eight hours of time already served.

Camacho was also placed on probation for 18 months.

He will pay a fine of $500, an assessment fee of $25 and a probation fee to be determined by the Office of Adult probation.

Camacho will perform 100 hours of community work service and submit a letter of apology to CUC and to Charles Cepeda.

Camacho’s review hearing was set for March 13, 2008 at 9 a.m.

Camacho was charged for taking $1,622.61 from Cepeda.

According to the Attorney General’s Office, Camacho committed the illegal acts between Dec. 2006 and April 2007 as CUC’s administrative support assistant.

It was Charles Cepeda, general manager of Pacific Trading, who wrote a letter to CUC regarding several power billing transactions with Camacho.

Camacho received over $1,000 from Cepeda but did not forward the money to CUC.

Camacho said he used the money to purchase a new alternator for his truck.

Palacios says new power rates illegal

mv-Monday November 19, 2007


--------------------------------------------------------------------------------

Palacios says new power rates illegal

By Gemma Q. Casas
Variety News Staff



HOUSE Minority Leader Rep. Arnold I. Palacios says the emergency regulations allowing the Commonwealth Utilities Corp. to again charge higher power rates are “unlawful” as they disregard the existing law that fixes the rate at 17.6 cents per kilowatt hour.

Palacios, R-Saipan, one of the principal authors of House Bill 15-246, which later became Public Law 15-94 on Oct. 4 after the Legislature overrode Gov. Benigno R. Fitial’s veto, said the executive branch has no power to alter what was set in P.L. 15-94 in the absence of a Public Utilities Commission.

“Because the commission has yet to convene, it is not possible for any rate increase to be reviewed and approved in accordance with law. Therefore, CUC has acted beyond its authority, and the notice of Nov. 11 is void,” Palacios wrote the governor on Nov. 16.

“As a result, CUC is now imposing an unlawful charge on residential customers,” he added.

The emergency regulations took effect on Nov. 2 and will last for 120 days. CUC will then adopt them permanently.

CUC is now charging residential customers 25.8 cents for the first 1,000 kwh of energy they consume and 30.2 cents per kwh in excess of that.

The governor said the emergency regulations are allowed by P.L. 15-94 which states that the government can adjust prices of electricity based on the actual cost of imported fuel.

“We’re only complying with the law,” he said in an earlier interview with Variety. “We didn’t create the law. The cost of fuel was allowed by that law to be factored into the rates that we now have. The emergency regulations were also a function of that law that we promulgated.”

But Palacios said the power to adjust electric rates is specifically entrusted to the yet-to-be-formed Public Utilities Commission.

“Simply put, that intent is to require that any future rate changes be approved by a duly formed and convened Public Utilities Commission,” he added.

Wednesday, November 14, 2007

Funding hike for utility aid program

Local Thursday, November 15, 2007 By Agnes E. DonatoReporter

Gov. Benigno R. Fitial has signed into law legislation that increases funding for the government's utility aid program.The new law earmarks $300,000 from the Tobacco Control Fund revenues for a supplemental account to the Low Income Home Energy Assistance Program.The new legislation took into effect retroactively to Oct. 1, 2007.Public Law 15-110 was enacted in a bid to help local residents in paying for power bills. Low-income families can apply for the supplemental aid for the portion of their CUC bills not covered by the LIHEAP subsidy.The Department of Community and Cultural Affairs will manage the funds.The Legislature noted that, although LIHEAP provides assistance to low-income consumers, the aid does not cover the full amount of most Commonwealth Utilities Corp. billings.As a result, many-low income families have had their power supply disconnected for non-payment.Nearly 450 residents are receiving financial assistance under LIHEAP, a federal program. This number was reduced from almost 700 a year ago due to utility disconnections.“The creation of a LIHEAP supplemental account from Tobacco Control Fund revenues will assist low income families in paying CUC bills in excess of the LIHEAP subsidy. This will ensure that vital power and water services remain connected, and that the health of low-income families is not jeopardized by the rise in power rates in the Commonwealth,” the Legislature states in the legislation.

Fitial says Legislature allowed him to increase power rates

111507 Gemma Q. Casas Variety News Staff

GOVERNOR Benigno R. Fitial yesterday said the Legislature’s override of his veto of the measure lowering residential power rates still stands as law but his team of legal experts determined they can promulgate emergency regulations.
“I think this whole issue is being misunderstood,” he said. “The Legislature passed a bill that reduced (residential power) rates. But it says, as you know, that there should also be fluctuating rates in the event that the price of fuel goes up. As you know, the price of fuel went up. Now, it’s approaching $100 per barrel,” said the governor.
He vetoed House Bill 15-246 on Sept. 14 which sets the rate at 17.6 cents the first 1,000 kilowatt hours of energy residential customers use and 22 cents per kilowatt hour for anything in excess of that.
But both houses of the Legislature overrode it just before the Nov. 3 election.
Thus, H.B. 15-246 became Public Law 15-94 and took effect on Oct. 4.
Fitial said P.L. 15-94 also states in part: “The electric charges and rates in this section shall supersede and replace the residential rates established by the amendments to part 24 of the Electric Service Regulations of the Commonwealth Utilities Corp. as set forth in 28 Com. Reg. 9 26156, et se. (Sept. 27, 2006), which became effective on Oct. 27, 2006; provided that the electric fuel rates may fluctuate depending on the actual cost of fuel.”
Changes in utility rates can only be made by the Commonwealth Public Utilities Commission.
Pending the creation of the commission, the Legislature enacted a law allowing the attorney general to act as the quasi-body of CUC.
On Nov. 2, Fitial approved the Commonwealth Utilities Corp.’s emergency regulations allowing it to charge residents 25.8 cents per kwh for the first 1,000 kwhs and 30.2 cents per kwh for all electricity they consume over 1,000 kwhs.
“That law, which was overridden by the Legislature, allows for the fluctuating rates. We’re only complying with the law. We didn’t create the law. The cost of fuel was allowed by that law to be factored into the rates that we now have,” said the governor.
“The emergency regulations were a function of that law that we promulgated,” he added.

Voters disappointed with lawmakers over re-imposition of high power rates

Emmanuel T. Erediano Variety News Staff 111507

TWO residents say they are now being criticized by their relatives whom they convinced to vote for House members who overrode the governor’s veto of the power rate cut legislation.
Gov. Benigno R. Fitial, invoking his emergency powers, raised the power rates again anyway.
Alexandro Sablan and Frank Camacho, in separate telephone interviews, said their relatives are disappointed with the lawmakers for giving them “false hopes.”
Sablan believes that lawmakers “saw it coming, and knew the governor would find a way to turn everything around.”
He added, “They should have known that the governor still had the power to raise the CUC rates but for the sake of votes they did not let the people know.”
He said he is having a hard time explaining what’s going on now in light of the governor’s emergency declaration re-imposing high power rates for residential customers.
House Bill 15-246, which became Public Law 15-94 after lawmakers overrode the governor’s veto, reduced the residential rate from 22.8 to 17.6 cents for the first 1,000 kilowatt hours.
Fitial’s emergency regulations stated that CUC can now charge 25.8 cents.
A former radio announcer, Sablan said he now regrets being in the frontline during the campaign period and endorsing certain Precinct 1 candidates whom he thought helped ease the problem of CUC’s “exorbitant rates.”
He said he convinced several voters to re-elect lawmakers behind the override of the governor’s veto.
“Now, the voters are criticizing me. They are asking me what happened to the candidates I asked them to vote for,” he said.
Sablan said he and the voters “feel very much cheated.”
Frank Camacho said the people he convinced to support certain lawmakers felt they were misled.
He said the lawmakers should have told them that the governor could raise the power rates again.
When the Legislature overrode Fitial’s veto, Camacho said, the people were very happy to hear about it.
“But the way things are going now,” he said, “we believe that the incumbent lawmakers during the campaign period voted to override it just because they knew a majority of people were discontented with CUC. Now, we are going backwards.”

CUC may switch to heavy fuel oil

111507 mv -Gemma Q. Casas Variety News Staff

GOVERNOR Benigno R. Fitial says his administration is studying the possibility of converting back to heavy fuel oil in the Commonwealth Utilities Corp.’s power plants which are currently using on the more expensive diesel fuel.
“We may have to resort to the use of cheaper fuel,” said Fitial.
All of the eight engines at Saipan’s power plant 1, the main source of electricity on the island, are designed to burn heavy-fuel-oil. They did so for many years until CUC management switched to diesel fuel.
The plan comes amid the cash-strapped government’s continued difficulty in keeping up with the soaring prices of imported fuel from Singapore that is used to run the public power plants, water wells, sewage plants and other facilities.
The issue of establishing a regional fuel cooperative supply was reiterated again during the three-day 8th Micronesia Chief Executives’ Summit being held here.
Fitial, the chairman of this year’s summit, asked his fellow island leaders — Palau President Tommy Remengesau, Guam Gov. Felix Camacho, Yap Gov. Sebastian Anefal and the Federated States of Micronesia’s representative Robert Lawrence — to support the move.
“We will be getting together after the summit to agree on creating a regional office for energy….Last March, we agreed that we will collaborate on fossil fuel energy bulk purchases,” said Fitial.
He said the only major obstacle to this plan is the lack of proper storage facilities to store the fuel.
“The only issue we have with that is the fuel farm. Where are we going to store the fuel after we purchase it in bulk?” he said. “We’re looking at Guam to take the fuel farm role. As you may know it has a refinery owned by Shell.”
Camacho said Guam’s infrastructure can accommodate bulk purchases of fuel.
“Infrastructure is in place in Guam. We have to look at this regionally. I know there have been discussions on this with Petron out in the Philippines,” said the Guam governor.
“Certainly, if all the islands had the holding capacity for fuel, then distribution would be another matter,” he added.
The islands are considering making wholesale fuel purchases from Manila rather than Singapore to save money.
“By buying in bulk from the Philippines, for example, where they have their own refinery we can probably lower the cost,” said Camacho.
Remengesau said by working together, islands can accomplish more, especially on major issues such as energy.
“We have proven that by working together, and by organizing subregional committees to focus on areas of concern, we can better address critical issues on a subregional basis,” he said.

The useless override

111507 mv letter to the editor

THE local newspaper showed a chart provided by the Commonwealth Utilities Corp. What’s not showing is the short-time implemented 17 cents per kwh for October. Where did it go and was it even implemented or adjusted?
What good is an override of any law when the governor can just step in anytime he wants and make changes? The governor, just like any other leader in most countries, should have limited powers. But it seems like Governor Fitial has more powers in office than the U.S. president.
Anyway, there are other alternatives to provide CUC with money for its shortfall. You could have raised cigarette and alcohol taxes, just to give an idea. I see nothing in this administration that has relieved the people. Hell, if you must, tax everything that moves but don’t get into our pockets.
The people don’t have hefty paychecks like you and your appointees. There is nothing wrong with the economy — it’s the people in charge that don’t work their way around it. Reality check: we don’t have a big house and pool that you have, especially on a hill. Hell, if you have not noticed, we are still paying the illegal surcharges that you introduced. We are not puppets attached to strings. This Pinocchio has turned mad. I don’t speak for myself. I speak for the many thousands of local residents that don’t protest or speak up. I’m their voice. It is people like me, Ambrose, Greg and Johannes and many others that just don’t stop at anything.
We can’t be stopped. We will never be stopped. So really, what have the CNMI people got left, but willpower. I feel for Greg Cruz, and also I think it is time for an impeachment. To avoid any delays, I suggest you should submit your own courtesy resignation to make things easier for the transition. The people already have the grades for your performance three months since you took office. Don’t forget to take Charles Jr. with you. You are all equal to corruption in my book. If you still don’t get it, feel free to read this all over again. Don’t worry. No surcharge involved here.
VINCE CABRERA
Chalan Piao, Saipan

Sunday, November 11, 2007

CUC water meter installation "ANOTHER PROBLEM APPROACHING"

Letters to the Editor Friday, October 12, 2007 By Agnes E. DonatoReporter

As a concerned citizen I am writing this letter to simply ask the following questions that I personally believe would affect CUC water customers in general.

On Oct. 8, 2007, the existing four water meters installed within our property was relocated and replaced with new ones outside our property line. The four relocated water meters were previously equipped with ¾ PVC ball valves but, to my surprise, these same ball valves were not reinstalled.

The contractor explained that it is not part of their construction contract with the CUC Water Task Force.The technical and logical questions are:

1. Why was no ball valve or gate valve installed after each water meter?

2. How can the water customers repair their water pipe lines or plumbing fixtures if such valves are not provided?

3. Will water customers need to call CUC water division if repairs are needed? If so, how soon will the water crew arrive at the customer's place? If the repair work takes one hour, one day or so, will CUC come and wait until the repairs are done? Who will be responsible for the lost or wasted water while waiting for the CUC crew(s)? There is a new 1 ½ PVC ball valve controlling the four new water meters installed at my place. I was told to close it to conduct repairs, resulting in the stoppage of water supply to the three other water meters. Is that logical?

4. Is it not part of the contract with CUC/Water Task Force to have those ball valves/gate valves installed? (At least those with existing ball valves/gate valves prior to installation of new water meters.)

5. If it is not part of the contract, then it may be part of the restoration clause of existing improvements damaged by construction operations (the installation of new water meters)?Please assist me to clarify this matter. Thank you very much.Manny T. VilagaIsa Road, Capital HillDuring our house to house visits people were complaining about the new smart meters installed and continues to run even with no water.

THE Saipan Chamber of Commerce is greatly disappointed

(101507 MV)

THE Saipan Chamber of Commerce is greatly disappointed with the legislature’s recent override of Governor Fitial’s veto of H.B. 15-246. The legislators’ transparent election year move to gain votes cannot be ignored. In the absence of any credible and well-reasoned explanation for both the initial passage, and subsequent veto override, of H.B. 15-246, we must assume that this is an unfortunate example of election-year pandering to the electorate. How can lawmakers believe this is any solution? CUC has clearly explained the consequences of such an override: the utility will be unable to pay its fuel bill, thus assuring regular black outs. CUC estimates 60 days of blackouts in a year, because of inability to pay for fuel. That equates to four hours a day, every day, for a year. And our elected officials have ignored this warning, to the detriment of us all. Our power crisis did not occur overnight and neither will it be quickly resolved. It is the legislators’ job, along with the administration and CUC, to work through the problem (which has been around for years), not to brush it aside. CUC and the administration had made the hard decision to charge the businesses and residents what it cost to produce power. No one, including chamber members, is happy with higher power rates, but we understand that a business cannot sell a service or product below its cost and expect to pay its bills and staff. We do not expect CUC to do this either. In fact, the Legislature doesn’t really expect this. The legislation provides that “the electric fuel rates may fluctuate depending on the actual cost of fuel.” Isn’t that what was happening already? This is not to excuse CUC. There are many steps they must take to reduce the costs of operations. CUC should be given realistic performance and operating goals and should be required to meet them. But the fact remains that they cannot sell a kilowatt hour for less than the actual cost of a kilowatt hour and still remain viable. And we must have reliable power on this island, for the health and safety of our residents, as well as to provide the backbone for business and future investments. If the Legislature believes that CUC is overstaffed or mismanaged, then they should address the real issue, not the symptom, which is the high cost. If they do not believe that mismanagement or overstaffing is the problem, then they should explain to all of us how they expect CUC to continue its operations while losing money on every kilowatt hour of electricity sold, and with a massive and seriously overdue government receivable on its books. CUC must, unfortunately, adapt to legislative meddling and become creative about how best to provide consistent power even as our elected officials play election year games. The chamber notes that H.B. 15-246 only addresses residential power rates. We suggest that CUC immediately increase its government power rates in an amount sufficient to offset the losses that will be incurred because of this legislation. Then there will be no need for rolling blackouts of any sort, and no “exorbitant” (to use the legislators’ word) residential rates. Reducing CUC rates may appear to assist the people, but this is a case of “penny wise, dollar foolish.” It is a short-sighted fix that will actually hurt people financially in the long-run. Consistent blackouts will force businesses, government offices and schools to close, reduce hours of operation, and reduce staffing. Many employees can expect reduced hours, reduced wages, and the possibility of further businesses closing. Thus, people now trying to make ends meet will become unemployed. Regular power outages will have a negative impact on our tourist industry. And closer to home, power outages damage and shorten the lifespan of electrical appliances. The Legislature wants businesses to hire more local workers, and the chamber supports this effort wholeheartedly. However, legislation such as this only hurts the ability of businesses to retain their current employees, let alone hire more staff. This override also sends the wrong message to potential investors, who look to a community’s ability to provide consistent utilities as a major consideration. The chamber is keenly aware of the hardships Saipan residents are experiencing due to the increase in CUC rates. Businesses are facing the same hardships. It is the duty of our elected officials to provide a reliable infrastructure for the CNMI. Bringing CUC up to efficient and effective operating standards will not be an easy task, but our legislators and administration must do the necessary hard work. We do not want a shoddy “band-aid” approach that is only undertaken to get votes. We are tired of excuses and we are tired of empty promises. We want substance, a real effort, and action to fix this problem. The Saipan Chamber of Commerce supports CUC rates that reflect the actual cost of producing electricity. The chamber also believes that it is long past the time for CUC problems to be faced honestly, and for the administration to take whatever steps are necessary to provide a reliable power infrastructure for the CNMI, starting immediately.JUAN T. GUERRERO PresidentSaipan Chamber of CommerceLawmakers defend CUC bill override
TWO House lawmakers say election year has nothing to do with their decision to override the governor’s veto of a bill lowering residential electric rates. The new law, according to the Commonwealth Utilities Corp., could mean more blackouts in the months ahead if their projected revenue loss of more than $8 million is not replenished.Vice Speaker Justo S. Quitugua, D-Saipan, said CUC’s “scare tactics” are already underway.“The power outages have begun even before we reduced the rates,” he said.Quitugua and House Minority Leader Arnold I. Palacios, R-Saipan, said while it is true that the override came just barely a month before the Nov. 3 midterm elections, it wasn’t intentional and that they worked on the measure as early as last year.“There is no electioneering here. We gave the administration time to decide on this issue,” Palacios said, adding that they were hoping that the administration would be able to form a board for the Public Utilities Commission, but this has yet to happenPress Secretary Charles P. Reyes Jr., who earlier asked the Legislature not to politicize the issue of electric rates, said the people will have to decide on Nov. 3.Palacios, the principal author of the bill, H.B. 15-246, introduced it on April 4.The House passed it on May 29 and the Senate on Aug. 16.On Sept. 14, Governor Benigno R. Fitial vetoed the bill, saying it would further destabilize CUC’s financial situation.He noted that the bill will only benefit residential customers and not the government or commercial establishments.Palacios said he was told that CUC’s budget for fiscal year 2008 will reach $117 million. Of this amount, he said $15 million will go to personnel expense and the rest to its operations budget, including fuel purchases.However, he said CUC hasn’t been able to submit to the Legislature any breakdown of its proposed budget.“The CUC management must give a proper account of how it spends it earnings,” said Palacios. “It’s not on fuel alone that they spend so much. They keep on hiring consultants. We don’t know how much these consultants are getting paid.”“They have order parts as far back as six years ago and some of those parts haven’t arrived yet. No one is making them accountable for their actions,” he added.According to Palacios, CUC hired at least four consultants in recent months including the Philippine-based Delgado & Associates, Quantum Consultants based in the U.S. and Economists.com, which is also based in the U.S.Palacios said CUC should be more transparent in its dealings and not just blame its financial problems on the rising cost of imported fuel.

House seeks 2yr moratorium on the sale of scrap copper wire

By Emmanuel T. EredianoVariety News Staff

AS the Division of Customs Service holds a number of container vans loaded with scrap metal for outbound shipment, the House Committee on Commerce and Tourism is seeking to stop the purchase and sale of scrap copper wire in the CNMI for two years.The House committee chaired by Rep. Martin B. Ada recommended “that House Bill 15-302 be passed.”The purpose of the bill, the committee said in its report on October 3, “is to place a two-year moratorium on the sale and purchase of after-market copper wire in the commonwealth,”A 14-foot container van containing scrap metal remains sitting at the port as Custom is scrutinizing every bit of scrap metal following the recovery of undeclared copper wire last month.Acting Customs Director Gregorio M. Sablan Jr. said in an interview that they have already come up with standard operating procedures in the flow of scrap metal for shipments, which he described to be “a mirror image,” of how it is being done in connection with garments and other shipments that require excise tax.Sablan, however, said that they are still waiting for the Attorney General’s Office to approve their procedures and the secretary of Finance to give them instructions. Rep. Ray N.Yumul, Ind.-Saipan in a separate interview said H.B. 15-302 “is to improve the intent of P.L. 15-36 and P.L. 15-55.P.L. 15-36, or the Recycling Reporting Act, regulates the recycling business in the CNMI while P.L. 15-55 provides 45-day waiting period for recycled materials leaving the islands.H.B. 15-302, the committee report said, also requires recycling businesses to apply for a business license at the Department of Commerce for an annual fee of $500. On October 2, customs authorities discovered a large quantity of copper wire embedded in compacted scrap metal for outbound shipment The 20-foot container van belongs to Saipan Triple Star Recycling Inc.Sablan declined to say more about it as the case is still under investigation. Yumul said he is very disappointed that while some recyclers are trying to make a clean living out of garbage, others are doing it dirty by buying stolen items.“And the honest firms are being tainted due to these shady operators,” he said.The lawmaker also said he is glad that the CNMI government has “a good handle on copper wire theft issues,”He commended Customs and the Department of Public Safety for doing the best they can to curb these thefts.

Wednesday, October 31, 2007

Businesses, gov’t to pay record high power rates

mv 110107

THE government and the business sector will pay record high rates for their electricity this month as the prices of imported fuel sold to the Commonwealth Utilities Corp. for its power plants and water wells reached more than $100 a barrel late last month.This month, CUC will charge the business sector 34.4 cents per kilowatt hour, up from 31.4 cents last month.The government will be charged 34.9 cents per kwh this month, up from 31.9 cents in October.Residential customers would have been charged anywhere from 27.4 to 38.5 cents per kwh had the lawmakers not overridden Gov. Benigno R. Fitial’s veto of a measure reducing the residential electric rates to 17.6 cents per kwh for the first 1,000 kwh of energy they consume.Pamela Mathis, CUC spokeswoman, said in September, they bought fuel from Singapore through Mobil Oil Marianas at $93.55 a barrel or $2.45-$2.90 per gallon.Late last month, the price of fuel sold to CUC hit $100.49 a barrel.“That’s the highest cost per barrel in CUC/CNMI history,” said Mathis.She said CUC is still trying to figure out how to address the huge projected revenue loss due to reduced residential electric rates which involves close to 12,000 accounts.A bill has been introduced in the House of Representatives to provide CUC with up to $6 million in fuel subsidies. But Mathis said the amount may not be enough since CUC’s projected revenue shortfall is more than $8 million.She said the current cap on residential electric rates can still be altered through the governor’s emergency powers, which he hasn’t exercised yet.

Tuesday, October 30, 2007

CUC lifts emergency load shedding

By Gemma Q. CasasVariety News Staff 103107

THE Commonwealth Utilities Corp. yesterday canceled its emergency load shedding schedule after its mechanics successfully fixed the troubled 7-megawatt engine, raising to four the number of working generators at Saipan’s main source of electricity.Pamela Mathis, CUC spokeswoman, said the troubled engine underwent a hydro-test and its leaks were also repaired.That engine’s leak problems with its cylinder caused its water and oil to mix.“So they have to reseal the cylinder,” Mathis said. “They also drained from the engine all of the contaminated oil that has a mixture of water in it.”After the engine was drained of all the liquids, the repair was made.Mathis said a group of in-house CUC power plant staff mechanics fixed the engine on a 12-hour rotating shift.“Four men and one foreman have been working since Friday on this engine on a 12-hour rotating basis,” she said. She said the other engines, which also experienced trouble from time to time, will undergo repair maintenance once the parts they have ordered arrived.In the meantime, CUC is reiterating its call on residents and commercial establishments to conserve as much energy as they can to help the agency keep up with the electricity demand of the island.Mathis said CUC noticed an upsurge on the use of electricity among residential customers after the Legislature’s override on a vetoed bill lowering residential electric rates.

Legislature wants CUC to have only 8 foreign workers

By Gemma Q. CasasVariety News Staff 103107

SPEAKER Oscar M. Babauta says the Legislature agreed to the Commonwealth Utilities Corp.’s request to continue hiring skilled foreign workers but their number will be limited to eight.CUC, moreover, will be required to train more locals, said Babauta, Covenant-Saipan.“The final conference committee report was approved based on CUC’s need for more technical people but it’s not necessarily to benefit just one company,” said Babauta referring to CUC’s dealings with local businessman Felipe Atalig’s manpower agency, Casa de Felipe.Atalig rejected CUC’s request for help over the weekend to fix a troubled engine.His firm used to provide CUC with at least 20 skilled workers for the past several years.However, the Legislature voted in favor of limiting manpower hires for CUC to just eight and for a limited term only. This privilege will expire on Sept. 30, 2008.In a separate interview, CUC spokeswoman Pamela Mathis said CUC is now looking at alternative manpower sources.“There was a request for three people. I confirmed that Mr. Atalig declined (to help us) and I have also confirmed that the CUC executive director is seeking alternative that could include other contractors or direct hire to supplement our staff,” she said.She said there is something going on between Atalig and the Legislature but CUC would rather not get involved. House Bill 15-285 allows CUC to have foreign hires, but only through manpower agencies with clean labor records.

Wednesday, October 24, 2007

CONSUMER CONCERN!!!

Saipan Tribune Letters to the Editor By Agnes E. DonatoReporter
Friday, October 12, 2007

CUC water meter installation

As a concerned citizen I am writing this letter to simply ask the following questions that I personally believe would affect CUC water customers in general.On Oct. 8, 2007, the existing four water meters installed within our property was relocated and replaced with new ones outside our property line.The four relocated water meters were previously equipped with ¾ PVC ball valves but, to my surprise, these same ball valves were not reinstalled. The contractor explained that it is not part of their construction contract with the CUC Water Task Force.The technical and logical questions are:1. Why was no ball valve or gate valve installed after each water meter?2. How can the water customers repair their water pipe lines or plumbing fixtures if such valves are not provided?3. Will water customers need to call CUC water division if repairs are needed? If so, how soon will the water crew arrive at the customer's place? If the repair work takes one hour, one day or so, will CUC come and wait until the repairs are done? Who will be responsible for the lost or wasted water while waiting for the CUC crew(s)? There is a new 1 ½ PVC ball valve controlling the four new water meters installed at my place. I was told to close it to conduct repairs, resulting in the stoppage of water supply to the three other water meters. Is that logical?4. Is it not part of the contract with CUC/Water Task Force to have those ball valves/gate valves installed? (At least those with existing ball valves/gate valves prior to installation of new water meters.)5. If it is not part of the contract, then it may be part of the restoration clause of existing improvements damaged by construction operations (the installation of new water meters)?Please assist me to clarify this matter. Thank you very much.Manny T. VilagaIsa Road, Capital Hill

House bill offers fuel subsidy for CUC

By Gemma Q. CasasVariety News Staff
A MEASURE was introduced in the House of Representatives yesterday to appropriate $6 million for the Commonwealth Utilities Corp. as a subsidy for its fuel expenses.The House referred the bill to the committee on Public Utilities, Transportation and Communication. Rep. Joseph P. Deleon Guerrero, R-Saipan, introduced H.B. 15-318 during the session. The bill seeks to create a “CUC Fuel Subsidy Account” outside the general fund in the amount of $6 million.Half of this amount will be taken from poker fee collections on the three main islands of the Northern Marianas. The other half is to come from the poker fees collected and deposited into the general fund.“The $6 million appropriation to the CUC Fuel Subsidy Account should cover the shortfall of CUC’s monthly fuel expenses for fiscal year 2008,” said Deleon Guerrero in his bill.The fuel subsidy for CUC is designed to help cushion the impact of reduced revenues following the Legislature’s decision to override Gov. Benigno R. Fitial’s veto on House Bill 15-246, which fixes at 17.6 cents per kilowatt hour the cost of electricity sold to residential customers for the first 1,000 kwh of energy they consume.CUC was charging residents and other customers up to 35.5 cents per kwh, depending on usage before the override was done.H.B. 15-246, now Public Law 15-94, is projected to result in losses of more than $8 million in revenue for CUC — money that it needs to buy fuel for the power plants.CUC said the new law will force it to implement rotating blackouts or load shedding – or power rationing every two hours.“In order to afford CNMI residents some relief from the exorbitant (power) rates, the Legislature enacted Public Law 15-94, which reduced the electric fuel rate to $0.176 cents per kilowatt hour,” H.B. 15-318 stated.“However, CUC has reported that the rate reduction would cause a shortage of funds to cover the cost of CUC’s monthly fuel expenses and rolling blackouts may be necessaryto save money on fuel,” it added.

Taotao Tano says it’s CUC, gov’t turn to carry burden

By Emmanuel T. EredianoVariety News Staff
FINDING the funds to cover the shortfall of the Commonwealth Utility Corp. is the problem of CUC and the government and not consumers, according to Taotao Tano leader Greg Cruz Jr. (See story on page 4)Cruz at the same time criticized CUC Executive Director Anthony Guerrero for not proposing a solution to the problem and for complaining about the enactment of the P.L. 15-94 which lowers electricity rates for residential consumers to 17.6 per kilowatt hour.The measure was vetoed by Gov. Benigno R. Fitial but the Legislature voted for an override.In his letter to Guerrero, Cruz said the consumers have suffered enough.He said paying exorbitant bills for a number of years and getting disconnected when they fail to pay, it is the consumers who have actually been “subsidizing your utilities agency” and were paying for its operational revenue losses for the past years. “We live on a small island and what goes around comes around to haunt you, especially when the problems were created and intentionally,” Cruz said.He said because of a “conspiracy” between CUC and the government, the consumers were made to pay for the agency’s revenue losses.Cruz said CUC should “stop its scare tactics” and its claim that it will have more serious problems in the future due to the shortfall. He told Guerrero to lead CUC employees in holding a protest outside the Legislature.“Maybe the lawmakers) may come up with the shortfall,” Cruz said. It was Cruz and his group who lobbied for the passage of the power rate reduction bill.

INNOCENT UNTIL PROVEN GUILTY!

TAOTAO TANO SAY'S HOW MUCH PROOF DO YOU NEED? DPL IS JUST BUYING TIME TO GET RID OF ALL INVOLVED? DPL? THE LETTER "P" STANDS FOR PUBLIC AND WE THE PUBLIC SAID NO!TO TRIPLE STAR RECYLING REQUEST FOR PUBLIC LAND LEASE. WE DON'T NEED THIS COMPANIES INVESTMENT.SHUT THEM DOWN!

Monday October 22, 2007 Local Monday, October 22, 2007

Recycling center on Tinian raided By Ferdie de la Torre Reporter Authorities raided on Thursday the Tinian branch of the controversial Saipan Triple Star Recycling, Saipan Tribune learned. Sources said officers from Tinian Department of Public Safety, Attorney General's Investigative Unit, and Commonwealth Utilities Corp. searched the recycling center pursuant to a search warrant. Copper wires and some water meters were allegedly confiscated during the raid. Authorities, however, have yet to confirm the information regarding the evidence. Saipan Tribune asked DPS spokesperson Lei Ogumoro about the operation, she refused to comment. On Friday afternoon, Immigration officers brought Mr. Qing Bin Zheng, an alleged overstaying Chinese national, to the Superior Court for a bail hearing. According to a report prepared by Immigration inspector Jay Jess San Nicolas on Friday, personnel from Tinian Immigration and AGIU from Saipan apprehended Zheng at the Saipan Triple Star Recycling on Tinian. San Nicolas said Zheng's last work permit expired on Jan. 18, 2006. “The respondent has been illegal over one year and nine months,” said San Nicolas in his report. Court documents also indicated that aside from Zheng there were also other persons arrested. Associate Judge David A. Wiseman imposed a $500 cash bail and $500 unsecured bond for the temporary release of Zheng. Wiseman said Zheng shall have not direct or indirect contact with “co-defendants and alleged victims.” The judge ordered the respondent to appear in court on Nov. 8 to explain why he should not be deported from the CNMI. During a House session last Tuesday, Rep. Ray N. Yumul reported that the Division of Customs is investigating Saipan Triple Star Recycling over its shipment of two containers of scrap metal. Customs imposed a hold on all scrap metal shipments on Sept. 4, 2007 due to a reported series of copper wire thefts in the CNMI. In spite of the order, the recycling center allegedly managed to ship two containers out of the CNMI, while the third container was intercepted. The inspected container reportedly contained questionable copper wires, including a spool of unused wire and possible copper wires such as that used by CUC.

Tuesday, October 23, 2007

Taotao Tano to CUC: Stop whining about shortfall

Local
Wednesday, October 24, 2007 By Marconi CalindasReporter


The Taotao Tano CNMI Association Inc. told the Commonwealth Utilities Corp. to stop complaining and instead find ways to address the revenue shortfall it will incur due to the recent passage of a bill lowering the power rates for residential customers.In a recent letter to CUC executive director Anthony Guerrero, Taotao Tano president Greg Cruz said that CUC should stop its “scare tactics” and find solutions to the problem.“Mr. Guerrero please understand that the people have suffered enough and it is clear and evident that we the consumers have been subsidizing your utility agency, including paying for your operational revenue losses for the past years,” said Cruz.He said the years of “cover-ups” between CUC and the government, including past mismanagements and the fact that consumers have been paying for CUC's operational revenue losses, is unjust. Cruz stressed that consumers expect their utility billings next month to reflect the changes made under House Bill 15-246, which rolled back the monthly customer charge from $7.67 to $3.50. The measure was initially vetoed by Gov. Benigno R. Fitial due to the loss of revenue that CUC will incur. However, the Legislature voted to override the veto on Oct. 11, enabling its passage into law. Cruz said the anticipated shortfall in CUC's revenue should be dealt with between the local government and the power corporation. He listed some recommendations on what the utility agency could do, including cutting costs internally, asking the Commonwealth Development Authority to write-off its debt, and asking Department of the Interior deputy assistant secretary David Cohen for technical assistance in the form of grants.He said CUC should also take back all the nonresident mechanics and engineers, provided that CUC employees will get trained. Also, the “PIO should concentrate more on solutions, not complain daily in the media as to where is CUC going to get the shortfall. That is why she gets a high salary. Put her to work rather than complain in the media, making every consumer's life miserable,” said Cruz.

Wednesday, October 17, 2007

UPDATE ON CUC SOLUTION FR: THE GOVERNOR

Saipan Tribune LocalThursday, October 18, 2007 By Agnes E. DonatoReporter

Fitial puts off airing solution to CUC crisis
Those expecting to hear the governor's big announcement on the power crisis were disappointed yesterday.Gov. Benigno R. Fitial did not make the announcement because he is still studying his proposal, according to his press secretary Charles P. Reyes Jr.“We are carefully studying the implications. We will make the announcement soon, but as of today, we're not ready yet. We have to make sure we do our homework first,” said Reyes.The governor was expected to announce yesterday morning his proposed solution to the Commonwealth Utilities Corp.'s financial crisis.Reyes said the governor was to discuss in a radio broadcast how he plans to prevent rolling blackouts when CUC runs out of money to pay for fuel.CUC is expected to suffer a shortfall of $7.2 million to $8.4 million in electric revenues as a result of the Legislature's decision to cut residential power rates below cost.

Monday, October 15, 2007

Governor to announce remedies for CUC

Marianas Variety News Staff 101607

GOVERNOR Benigno R. Fitial will announce legal and financial remedies for the Commonwealth Utilities Corp.’s projected $8 million revenue shortfall following the Legislature’s decision to reduce residential electric rates.Press Secretary Charles P. Reyes Jr. said the governor convened his cabinet members yesterday morning and announced that he was preparing to take action on the CUC situation.“In order to prevent CUC from hitting the reef, we will take steps,” said the governor in the minutes of the cabinet meeting.Reyes said the administration has consulted a U.S. financial accounting firm.“The governor will make an announcement about the remedies we will take in the next day or two,” he said. During the 2005 gubernatorial campaign, the governor and Lt. Gov. Timothy P. Villagomez promised a repeal of the CUC fuel surcharge, indicating that they supported lower power rates. They did scrap the surcharge but replaced it with a new formula that doubled the power rates.When asked about this issue, Reyes said they did not anticipate that the problem with the soaring prices of imported fuel would reach record highs in 2006.“It’s clear that the situation was worse than we expected and that’s why we had to raise the rates,” said Reyes.“The stocks are doing well because the crude oil prices are getting higher per barrel. It’s still on an upward path and we have to remember that the CNMI pays more for fuel because of our arrangement,” he added.In 2005, the monthly average cost of imported fuel sold to the CNMI was around $2 million. By 2006, it went up to about $6 million, based on CUC’s records.The House of Representatives is preparing to insert a provision on the yet-to-be-approved fiscal year 2008 budget of the CNMI that would grant CUC subsidies to buy fuel.The House is scheduled to hold a session this week.

Fitial identifies solution to power crisis

(st-Tuesday, October 16, 2007 By Agnes E. DonatoReporter


Gov. Benigno R. Fitial will announce his proposed solution to the looming power crisis tomorrow, according to his spokesperson.Press secretary Charles P. Reyes Jr. said the governor is expected to go on local radio Wednesday morning to discuss how he plans to prevent the return of rolling blackouts despite CUC's projected deficit.The administration says CUC will experience a shortfall of $7.2 million to $8.4 million in electric revenues as a result of the reduced rates enacted by the Legislature.According to Reyes, the governor has been meeting with CUC officials since last week to address the crisis.“The governor will be announcing his remedy within a couple of days. If nothing is done, CUC will run out of money to buy fuel and it will have to implement power rationing. The governor wants to prevent that from happening,” said Reyes.Residential power rates were reduced to as low as 17.6 cents per kWh after the Legislature overrode the governor's veto of House Bill 15-246 recently.Under the legislation, households will pay 17.6 cents per kWh for the first 1,000 kWh. This represents the fuel rate, which may fluctuate from month to month depending on the cost of fuel. Before this act, the fuel rate averaged 20 cents per kWh.The fixed non-fuel rates will no longer be charged for the first 1,000 kWh. But for anything over 1,000 kWh, the non-fuel rate will be 44 cents per kWh, plus the 17.6-cent fuel rate. Previously, the non-fuel rate schedule ranged from 1.6 to 12.7 cents per kWh for residential customers.The new law cuts the monthly customer charge from $7.67 to $3.50.

Sunday, October 14, 2007

Saipan power on now, off later

By Gemma Q. CasasVariety News Staff (mv 101507)

POWER in some villages on Saipan went on and off over the weekend as the Commonwealth Utilities Corp. struggled to deal with another major emergency situation at its main power plant.CUC’s hotline said the power outages began on Saturday, lasting for a few minutes to over an hour.CUC said there was mechanical trouble with one of the major engines.“We have an emergency situation. This is not load shedding yet,” a CUC staffer manning the hotline said.Staff members at the power plant refused to say how many engines are still running. Officials of CUC could not be immediately reached for comment.Power went off just before 7 p.m. in parts of Garapan, the center of business activities in Saipan on Saturday. In Koblerville, some residents complained they lost electricity for at least two hours yesterday.Residents and business establishments in Garapan said they suffered unannounced power outages in the morning and afternoon.For many, what should have been a relaxing weekend turned out to be anything but.“We were supposed to be watching a movie at home,” said a father who asked not to be named. “But as you can see, we ended up staring at each other because there is no electricity.”In yet another neighborhood, some parents complained that their children’s education was being affected.With no generator to rely on in case of a power outage, they said their children end up not doing their homework, especially when CUC cuts their power at night.Since Oct. 4, CUC has been required to bill residents at lower rates for their electricity.Under House Bill 15-246, which became law after the Legislature’s override of the governor’s veto, CUC now sells electricity for 17.6-cents per kilowatt hour for the first 1,000 kwh to residential customers.Last month, residents were billed 24.4 to 35.5 cents per kwh, depending on their consumption.CUC said the Legislature’s override lowered the residential electric rates but will result in more than 1,400 hours of rotating blackouts in the months ahead as the agency tries to stretch its limited revenue collections to pay for fuel.

This type of individuals needs to be located since they have no problem paying high rates. CUC and the government needs to create a BILL called "VOLUNTARILY CAN AFFORD TO PAY HIGH RATES" and pass it asap.

WHAT CUC NEEDS TO DO!

1. CALL BACK THE ALIENS TO TRAIN THE LOCALS INSTEAD OF WASTING MONEY AND TIME.
2. STOP PLAYING WITH THE ENGINES SUCH AS "ROLLING BLACKOUT'S" THIS IS ONE REASON WHY THE ENGINES ARE GOING DOWN.
3. HIRE MORE STAFF FOR THE PLANT INSTEAD OF THE ADMIN.
4. MOVE THE CUC ADMIN INSTEAD OF RENTING NEXT TO THE PLANT & UTILIZE THE EXCESS EMPLOYEES TO POWER UP THE PLANT. THAT IS THE HEART OF CUC DON'T YOU THINK?
5. IMPLEMENT SAVING OF POWER AS THEY EXPECT FROM THE CONSUMERS.
6. STOP THE POLITICKING IN THE CUC.
7. STOP SENDING STAFF OFF ISLAND FOR TRAINING BECAUSE IT DOES NOT MAKE SENSE WHY WE STILL GET THE SAME SERVICES AS IF THEY WERE UNSKILLED.
8. STOP HIRING AND "RE-TRAIN" THE EXISTING STAFF OVERALL.
BOTTOM LINE IS: TOO MUCH ROLLINGS AND SHUT DOWNS THEY FORGOT THE ENGINES ARE BUILT TO GIVE UP YOU KNOW.

A weekend of outages, CUC calls back alien workers

Monday, October 15, 2007 By Ferdie de la TorreReporter (ST)

It was a weekend of outages on Saipan. The Commonwealth Utilities Corp. said the cause was fuel injection system in the power engines.As of 8:30pm yesterday, CUC spokesperson Pamela Mathis told Saipan Tribune that the utility agency's executive director Anthony Guerrero ordered that the alien workers employed by a contractor be called in for emergency because the problem got worse.Mathis said the fuel injection problem has escalated to a bigger turbo charger problem.“The problem is that the employees that have been working on the two units have been at it since early today (Sunday) and really can't do anymore,” she said.The problem, Mathis, said, triggered more outages “this evening” (Sunday night) in Capital Hill, Kagman and the northern part of the island.On Sept. 30, 2007, more than 20 non-resident workers plus six engineers stopped working at CUC as no bill has been signed allowing CUC to keep employing alien workers.Yesterday the outage started at 10:30am in China Town, Miha, and the Duty Free Shoppers area. At 1pm the power was back.Mathis said from 11:42am to 1pm the outage occurred in Fina Sisu, As Lito, San Antonio, Chalan Kanoa, and Chalan Piao.At 4pm, CUC tripped a part of Kiya 4 grid or the Beach Road and Chalan Kanoa areas. The outage lasted an hour.The second partial of Feeder 2 or the Garapan Beach Road from Tony Roma's to San Jose was also taken off.As of 6pm, Mathis said the mechanics were almost done with the repair.“They took turns (outages) so that nobody has to suffer for a too long of a period,” she said.On Saturday, two different set of outages occurred.A 30-minute outage started at 12 noon in Capital Hill, Kagman, Marpi, As Matuis, and Tanapag.At 6pm, the same areas-Marpi, As Matuis, and Tanapag had outage along with Garapan area.Power was back in Garapan at 6:30pm while the other areas from 7pm to 8:30pm.

Wednesday, October 10, 2007

Speaker: Bill to subsidize CUC in the works (mv-101107)

SPEAKER Oscar M. Babauta says the House of Representatives will explore the possibility of appropriating subsidies for the Commonwealth Utilities Corp. to cushion the impact of its projected revenue loss following the enactment into law of a bill lowering residential electric rates through the Legislature’s override. Babauta, Covenant-Saipan, was among the 16 lawmakers who voted in favor of overriding Gov, Benigno R. Fitial’s veto on House Bill 15-246, or the Act to Establish the Electric Charges and Rates for the Commonwealth Utilities Corp.He said the House will put together a subsidy package for the corporation.“We’re aware of that. We have been forewarned,” said Babauta referring to CUC’s claim that the override of H.B. 150246 would negatively impact its ability to provide continuous power to the islands.“Right now the House is putting together a financial subsidy plan for CUC,” he added.When asked where they will get the money, the speaker said: “In the bank.” He said local funds will be tapped but did not elaborate how.Babauta was at the CUC office yesterday.The governor earlier said the cash-strapped government has no spare money to subsidize CUC for its fuel expenses.The previous administration subsidized CUC’s fuel purchases up to $2 million a month. In a separate interview, Vice Speaker Justo S. Quitugua said the House will insert provisions appropriating subsidies for CUC in the proposed 2008 budget.“We discussed inserting that in the 2008 fiscal year budget,” he said.Quitugua said although FY 2008 officially began on Oct. 1 and technically the government’s spending level remains at $163.5 million in the absence of a new budget, lawmakers can still work on a budget for the current fiscal year.“Our agenda in the meeting (today) is the budget. We can still work on the fiscal year 2008 budget,” said Quitugua.He said conditions will be set for the proposed subsidy including that CUC be more transparent in its finances.He said he will draft legislation requiring CUC to make a quarterly public report explaining how it spends its money.

Monday, October 8, 2007

Crisostimo: CUC needs private sector’s help MV 100907

A SENATOR has prefiled a bill encouraging the Commonwealth Utilities Corp. to engage with the private sector in a partnership to provide its customers with a more stable power supply.The still unnumbered Senate bill is titled “CUC Private Sector Partnership Act of 2007.”Its author, Sen. Luis Crisostimo, D-Saipan, said the measure will give CUC corporate power to seek bankruptcy protection from its creditors.The bill asks the Public Utilities Commission to review and amend Section 2 of Public Law 15-12 which states that the Commonwealth Development Authority is authorized to write off CUC’s principal loan of $45.5 million subject to 50 percent repayment by an independent power producer should CUC privatize its power operations.Crisostimo, the chairman of the Senate’s committee on Public Utilities, Transportation and Communication, said CUC can only recover with the help of the private sector.He said about $75 million of CUC’s revenue goes to pay for imported diesel fuel.“Recovery is possible, but recovery requires assistance and support from the private sector. The commonwealth and CUC must commit themselves to successful models of public-private sector partnership,” the bill stated.“These models range from privatization of management through performance management contracts, as undertaken in Guam, to privatization of an entire utility service regulated by a Public Utilities Commission as is common in the 50 states. By taking advantage of one or more of these models, the commonwealth and CUC can draw on outside financing and expertise from the private sector to meet — and resolve — the power crisis,” the bill added.

Sunday, October 7, 2007

Charles to prevent new law from applying to CUC

Press Secretary Charles P. P. Reyes Jr. said they are exploring legal means to prevent the new law from applying to CUC amid concerns that the agency will incur up to $8 million in potential revenue losses in a year’s time. OH THEY ARE SO FAST WHEN IT COMES TO HURTING CUC, BUT FOR THE RESIDENTIALS? WHO CARES LET THEM SUFFER.

Saturday, October 6, 2007

TAOTAO TANO PAYS A VISIT TO THE CUC POWER PLANT

FINDINGS:

1. STREET LIGHTS ACROSS THE PLANT WERE ALL ON AT 1PM IN THE AFTERNOON.

2. WE COULD NOT ENTER THE PLANT WITH OUT AN AUTHORIZATION FROM THE MR. SANTOS AS PER THE SECURITY GUARD.

3. 2 LARGE BUNDLE OF COPPER WIRES WERE LEFT AT THE FRONT CORNER OF THE FENCE VISIBLE TO THE PUBLIC.

4. DID AN INVESTIGATION ON THE HIT AND RUN FUEL PIPELINE TODAY AND TOOK PHOTOS OF TIRE MARKS. THE ONLY MARKS WE COULD FIND WAS DOUBLE TRACKS LEFT ON THE SCENE. THE FUEL PIPELINES ARE VISIBLE AND UNPROTECTED FOR ANY FUTURE OCCURANCE.

Thursday, October 4, 2007

Lower power rates in effect

Friday, October 05, 2007

Senate echoes House action on power rate reduction bill
By Agnes E. DonatoReporter
Customers can expect a drop in their next electric bill, after the Legislature succeeded in enacting a law to reduce power rates for residential consumers.In a session on Rota yesterday, the Senate voted unanimously to override the governor's veto of House Bill 15-246. The House of Representatives did the same thing on Wednesday.A bill rejected by the governor can still become law if two-thirds of each chamber votes to override the veto. In the case of H.B. 15-246, all eight senators present in the Rota session backed passage of the bill. Sen. Maria Frica T. Pangelinan was absent.With the bill now law, the Commonwealth Utilities Corp. will be compelled to reduce residential rates to the levels set by the Legislature. Commercial, government, and other customers will continue to pay the old rates.Under the legislation, households will pay 17.6 cents per kWh for the first 1,000 kWh. This represents the fuel rate, which may fluctuate from month to month depending on the cost of fuel. Before this act, the fuel rate averaged 20 cents per kWh.The fixed non-fuel rates will no longer be charged for the first 1,000 kWh. But for anything over 1,000 kWh, the non-fuel rate will be 44 cents per kWh, plus the 17.6-cent fuel rate. Previously, the non-fuel rate schedule ranged from 1.6 to 12.7 cents per kWh for residential customers.The new law cuts the monthly customer charge from $7.67 to $3.50.Taotao Tano, which lobbied the Legislature to pass the bill, rejoiced at the Senate action. Gregorio Cruz, president of the local citizen group, said he was overjoyed. “It's about time the Legislature did something and delivered their promise to the people. It's probably just because of the coming election, but I hope it is not the case,” he said.On the other hand, the Fitial administration said the rate reduction might backfire in the form of rolling blackouts.“This presents a new crisis for CUC,” press secretary Charles Reyes said. “The bill basically forces CUC to produce and deliver utility service at below cost. That will cause a serious financial problem for the government. We have to look at our options.”The most likely consequence, he said, is the return of power rationing. If this happens, consumers will experience regular power outages lasting two or more hours a day.A lawsuit is another possibility, Reyes said, but it is not the administration's preferred approach because it takes time and resources.“This bill puts us in a bad situation and now we just have to deal with it. The Legislature thought to please the constituents by reducing costs, but the public may not like the consequences either,” he said.In his veto message, Gov. Benigno R. Fitial said the residential rates proposed in the bill would not cover their share of CUC's operating costs. As a result, CUC would experience a shortfall in electric revenues estimated at $7.2 million to $8.4 million.House Minority Leader Arnold I. Palacios, author of House Bill 15-246, said the Legislature would work with the administration in finding funds to subsidize CUC.“In an ideal world, CUC must be self-sustaining. But the reality is, it cannot do that without imposing exorbitant rates on the customers. Now the public is suffering. Hundreds of households have no power service and that's unacceptable. That's why the government has to step in and subsidize CUC. If we have to cut other programs, we'll do it. Like education and healthcare, utility is an essential public service. We have to make it affordable,” said Palacios.In related news, the Senate followed the lead of the Lower House, which had voted to override vetoes of five other bills. The bill extending CUC's bill payment plan to one year is now a law after a 7-1 vote in the Senate. President Joseph M. Mendiola opposed the bill.Mendiola was also alone in voting against H.B. 15-27, which allows employees with 15 years of government service to withdraw their retirement contributions. The measure is now in effect.The Senate also had enough votes to pass H.B. 15-53 granting preference to local contractors bidding for government projects; H.B. 15-229 amending the Chamorro-Carolinian Language Policy Commission Act; and Senate Bill 15-89 offering job protection to volunteer emergency responders.

Wednesday, October 3, 2007

CHECK OUT THE TRIBUNE VERSION

Thursday, October 04, 2007
House overrides six vetoed bills
By Agnes E. DonatoReporter
The House of Representatives voted yesterday to override the governor's veto of six bills, including three relating to the Commonwealth Utilities Corp.This marks a departure from the House majority's previous tendency to go by the administration's policy, which at some point earned them the label “rubberstamp Legislature.”During a session yesterday, the House voted on one vetoed bill after another, reversing the governor's decision to thumb them down.“It's the season of discontent,” said House minority leader Arnold I. Palacios.First to be overridden was the bill reducing CUC's power rates. By vote of all 16 members present, House Bill 15-246 passed the House and is now headed to the Senate. The lawmakers' decision earned applause from attending members of the Taotao Tano citizen group.The House also voted unanimously in favor of a bill giving residential customers one year to pay their outstanding balances with CUC.Press secretary Charles P. Reyes Jr. lamented the lawmakers' action, saying the House should have at least proposed revenue sources to support CUC.“This is definitely a setback in trying to salvage CUC,” he said. “But it's an election year. It's a different political environment to be operating in.”Nevertheless, Reyes said the administration remains hopeful about its relationship with the Legislature. On Tuesday, acting Gov. Timothy P. Villagomez approved four bills passed by the Legislature.“We may not always agree, but we will continue to work with them on things we agree on,” he said.The House succeeded in overriding the veto of H.B. 15-27. Strongly opposed by the administration and the NMI Retirement Fund, the measure proposes to allow employees with 15 years of government service to withdraw their retirement contributions. Fourteen members voted in favor of the bill. Floor leader Florencio Deleon Guerrero voted against it, and Speaker Oscar M. Babauta abstained.Three other bills drew enough votes to override the governor's rejection. H.B. 15-53 would grant preference to local contractors bidding for government projects. H.B. 15-229 proposes to amend the Chamorro-Carolinian Language Policy Commission Act. Senate Bill 15-89 seeks to offer job protection to volunteer emergency responders.However, the House failed yet again in overriding H.B. 15-300. A motion to reconsider the House's previous vote on the bill was defeated 9-4, with three members abstaining. The legislation would have put the power privatization on hold until the Public Utilities Commission and the CUC advisory board are in place to approve the contract.



FOLLOW'S WITH:

Thursday, October 04, 2007
The ball now goes to the Senate's court
By Agnes E. DonatoReporter
All eyes will be on the Senate today as it considers a veto override on a bill lowering the residential power rates in the Commonwealth.The House of Representatives voted yesterday to overrule the governor on House Bill 15-246.If the Senate follows suit and the bill becomes law, the Commonwealth Utilities Corp. will be compelled to drop its residential rates to as low as 17.6 cents per kWh.It's no surprise the Taotao Tano citizen group is lobbying the Legislature vigorously to override the governor's veto.Yesterday, Taotao Tano members went up Capital Hill to make sure the Lower House backed the bill. They broke into applause after members voted unanimously in favor of the override.Taotao Tano president Gregorio Cruz says they plan to put the same pressure on the Upper House today. The group is sending two members to attend the Senate session on Rota. Taotao Tano is also in contact with Chamorro Nation, a Rota-based indigenous group, to join forces with them.“We will be watching this session closely,” Cruz said. “The majority of the Senate must override the veto no matter what. They can work on the issues later, but the people need relief now.”At least two senators-Senate vice president Pete P. Reyes and floor leader Felix Mendiola-have pledged their support, according to Cruz.Meanwhile, the Fitial administration hopes the Senate will stand up to “political pressure.”“We hope our elected leaders will look at the facts and go beyond the political pressure. We need to be realistic and reasonable,” said press secretary Charles P. Reyes Jr.In his veto message, Gov. Benigno R. Fitial said passage of the CUC rates bill “would be detrimental to CUC, the CNMI government, and the people of the Northern Mariana Islands.The governor said the residential rates proposed in the bill would not cover their share of CUC's operating costs. As a result, CUC would experience a shortfall in electric revenues estimated at $7.2 million to $8.4 million.Further, CUC would be dependent on the Legislature to appropriate funds to offset the shortfall. With its financial condition, the government cannot afford this, Fitial said.“[It] is unlikely that the entire shortfall could be made up, which may jeopardize and disrupt CUC's ability to continue to generate sufficient electricity to meet the demands of all consumers,” the governor said.He went on to criticize the Legislature for not providing a practical solution for CUC or the government to make up for the revenue shortfall that the bill would create.He urged the Legislature to help address CUC's problems, as well as the CNMI's overall economic depression, “in a thoughtful and rational manner.”

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RESEARCH DONE AUGUST - SEPTEMBER 2007