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‘CUC shortfall may soon affect fuel for Rota, Tinian’
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Posted on Apr 09 2008
The Commonwealth Utilities Corp.’s collections shortfall may soon affect CUC’s fuel supply to Rota and Tinian, according to CUC executive director Anthony Guerrero.
“It may be very well come to a point that we’re going to basically have to spread the burden to all three islands,” Guerrero told Saipan Tribune.
Guerrero said that, in addition to CUC’s monthly need for 25,000 barrels of fuel to Power Plant 1 in Lower Base, they also buy regular truck shipment for Power Plant 4 in Puerto Rico, both located on Saipan, and weekly deliveries to Tinian and Rota on a separate ship.
“What’s going to begin to happen now is that because of our cash situation we need to spread out this [shortfall problem] to all three islands,” he said.
That means, the executive director said, that CUC may reach a point where it could only afford to purchase a portion of the fuel for Rota and a portion for Tinian in order to try and manage the situation.
“Rota and Tinian are treated separately. We usually handle that through our weekly payments to them. As of right now both islands are okay,” he said.
However, Guerrero stressed, as CUC gets more pressure from its fuel supplier, Mobil, to make the payment on the remaining fuel supply and the maintenance requirements of Power Plant 1, it’s going to reach a point where CUC will have to make a decision whether to buy less fuel for Tinian and Rota.
“It’s very difficult,” the CUC official added.
CUC’s fuel supply for Power Plant 1 will reportedly last until the end of next week as CUC was short of $ 2 million to pay Mobil.
CUC is continuously talking with the Fitial administration regarding assistance as it managed to pay only $1.5 million out of the needed $3.5 million worth of 25,000 barrels of fuel.
Guerrero said CUC has been facing a shortfall in collections since March 3 when the power rate reverted back to 17.6 cents per kilowatt hour for residential customers.
