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.

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.