CUC-Telesource meeting today on Tinian plant debts

The Commonwealth Utility Corp. is preparing to meet today with the operator of Tinian’s power plant, Telesource CNMI Inc., after the company on Thursday blasted CUC management for failing to pay debts and supply the plant with fuel, saying it has only enough fuel to power the island for four days.

Last week, CUC executive director Antonio Muna told the Saipan Tribune that the utility was prepared to pay the $375,000 needed to provide the Tinian power plant with the fuel it requires to stay in operation. Yet in a statement issued Thursday, Telesource management said, contrary to Muna’s claims, the company has not yet received the payment and has only four days worth of fuel left.

“[I]f CUC does not replenish the tanks very soon, the power plant will have to be shut down,” Telesource said, adding that unless the debt is paid soon, the company will no longer have the funds to buy spare parts or lubrication oil.

In an interview Thursday, Muna responded that the fuel would be delivered that night, adding that CUC purchased the fuel from Mobil on Wednesday. Problems with a delivery tanker prevented the fuel from reaching Tinian earlier on Thursday, he said.

Muna further answered the charge in Telesource’s statement that CUC has yet to pay the company for the month of May on a series of $180,000 promissory notes, saying that CUC on June 9 provided part of that monthly payment but still faces some outstanding fees.

Telesource and CUC are set to meet and discuss the debts today, he added.

Nevertheless, Telesource’s statement says the company still has yet to see the payment. This breach of contract, according to a strongly worded letter from Commonwealth Sens. Jude Hofschneider (R-Tinian) and Henry San Nicolas (C-Tinian) last week, has already resulted in denial of service for some customers.

The reason CUC has seen problems paying these debts, Muna said last week, is the utility’s dire financial situation. Telesource’s statement appears to recognize these problems, but stresses that CUC’s debts are nonetheless hindering the Tinian power plant’s operation.

“There is no doubt that CUC has pressing issues and it is in everyone’s best interest to support CUC management in their effort to get the utility under control,” it says. “However, Telesource is no longer capable of borrowing or allocating funds to support its Tinian operation because of non-payment by CUC.”