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.

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.

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.”

CHECK OUT THE MARIANAS VARIETY VERSION

THE House of Representatives overrode Governor Benigno R. Fitial’s veto of six bills yesterday with some lawmakers saying their action was fueled by community discontent with the administration’s unpopular policies. The vote was 16 in favor of overriding House Bills 246, 277 and 244. Rep. Crispin M. Ogo, Covenant-Rota, and Rep. Absalon Waki Jr., Covenant-Saipan, were absent.H.B. 15-246 is a measure designed to cap at 17.6 cents per kilowatt hour the cost of electricity sold to residential customers for the first 1,000 kwh of energy they use.Fitial vetoed the measure saying it discriminates against commercial and government customers and may further destabilize the financial condition of the Commonwealth Utilities Corp. But some residents who were in the gallery said CUC’s current power rates are too much to bear given the islands’ worsening economic crisis.The price of electricity has doubled since July 2006.H.B. 15-277 seeks to allow class 1 members in the NMI Retirement Fund to withdraw their contributions from the local pension system even if they have been vested for up to 15 years.Right now, the Fund prohibits members from withdrawing their contributions if they have been in the system for more than 10 years.Fitial said he vetoed H.B. 15-277 because it will affect the solvency of the financially troubled pension system.“The existing 10-year period for withdrawal is sufficient and fair for members who are considering whether or not to withdraw their contributions. Approval of the 15-year period will decrease the investment capital of the Fund, and further risk the ability of the Fund to continue to meet its obligation of caring for the commonwealth’s retirees and their families,” he said in his veto message to the Legislature. Likewise, the House overrode by 15 votes Senate Bill 15-89, a measure sponsored by Senate Vice President Pete P. Reyes, Ind.-Saipan, seeking to offer job protection to private and public sector employees who volunteer up to two months of their time for disaster relief. House Floor Leader Florencio De Leon Guerrero, D-Saipan, voted no on the motion to override S.B. 15-89.The vetos of House Bill 15-277 and House Bill 15-53, were overridden by 14 votes. H.B. 15-53 seeks to give US contractors preference in federally funded projects under $500,000.H.B. 15-244 seeks to grant residential customers up to a year to settle their arrears with CUC. The veto on H.B. 15-229-a measure to clarify some ambiguous provisions in the Chamorro-Carolinian Language policy was also overridden.House Minority Leader Arnold I. Palacios, R-Saipan, said lawmakers want to ease the public’s burdens, particularly those related to utility rates.“It seems that everybody is discontented with the way things are,” said Palacios. “The Legislature is just expressing the people’s sentiment.”Press Secretary Charles Reyes Jr. said the administration is asking the Legislature not to politicize things at CUC.The Senate is expected to override the same bills when it convenes today on Rota.“We ask the Senate to vote responsibly on those CUC bills in view of existing economic facts and the financial condition of our government in terms of our inability to subsidize CUC operations. We cannot afford it. Leadership requires that we resist irresponsible political pressures and respect financial and economic realities,” said Reyes. “We believe we had substantial and compelling justification for rejecting these bills and we ask the Senate to carefully consider the Governor’s reasoning when they vote on the bills,” he added.