PUTC gives CUC ultimatum

Expressing dissatisfaction over the current power situation, the House Committee on Public Utilities, Transportation and Communication is giving the Commonwealth Utilities Corp. until today to submit documents that show what is actually going on with Saipan’s power system.

Failure to do so would force the panel “to take any and all actions it may deem necessary,” according to committee chair Timothy Villagomez, himself a former CUC executive director.

Villagomez, in a June 2 letter to CUC board chair Herman P. Sablan and executive director Lorraine A. Babauta, said it is unfortunate that, while they gave assurances at a recent public hearing about CUC having sufficient power capacity, the utility firm actually began power shedding across the island.

“Unfortunately…as recently as May 30, less than 48 hours from your assertions and assurances, CUC began power shedding, instituting ‘rolling blackouts’ across the island. These rolling blackouts have continued since then, causing tremendous consternation among our families and the business community [and] adversely affecting the tourism industry,” said Villagomez.

He cited that on June 1, the central Garapan district was without power for about two hours “at the height of the dinner rush,” while Kagman and Capitol Hill had no power from 8pm until almost midnight.

This as the celebration of the 60th anniversary of the Battles of Saipan and Tinian is set to begin on June 11, he noted.

“Extreme concern has been expressed as to the dissonance between your assurances and the reality of the recent power outages,” he said.

He noted that continued power outages would have a devastating and disastrous effect on the tourism industry “at a time when we can least afford it.”

Villagomez said he intends to convene an emergency oversight hearing to verify the status of the power capacity, how CUC got to the current critical situation, what is being done to prevent additional power outages, and how to ensure a long-term adequate supply of power on the island.

Toward this end, the committee is asking the CUC to immediately provide an analysis of the current status of all engines in its four power plants, including the current output of each engine, repair status—including dates of parts ordered and estimated time of arrival—and where an engine is currently being overhauled, and its anticipated date to be placed online.

“Please further provide an analysis of your solution to the current problem, and how you intend to ensure that CUC will be able to provide necessary power demands of the upcoming celebrations,” said the panel chairman.

He said the committee understands that CUC may deem certain items as privileged at this time, but “it does not share the same sentiments with respect to the information currently being requested.

The lawmaker noted that the committee can use its subpoena powers to get needed information to address an emergency case such as the power situation.

“It is aware of its subpoena powers but trust that CUC will take this opportunity to ensure that the communication between CUC and the committee will continue to be cordial and productive,” he said.

“However, should CUC fail to so comply…this committee is obligated in the representation of the people and citizens of the Commonwealth to take any and all actions it may deem necessary in the protection of its interests,” he said.

During the public hearing last week, CUC declined to give certain information to the committee, citing its “confidentiality” in view of an on-going privatization work.

The lawmaker said that “due to the urgency of the matter,” the committee believes that CUC has been at work on the items requested, and that there should be no problem in providing the documents “to my office by Friday, June 4, 2004.”

As of yesterday, Villagomez office said that it has not received any documents from the utility firm.

Meantime, Sablan said yesterday that CUC can readily provide the panel with the needed information.

“The management should have all that information. We will submit to the committee,” he said.

Sablan, however, said he was uneasy about the committee’s “manner” of requesting for the information. “They should be careful how to address things,” said Sablan.

“We cant really guarantee 100 percent perfection. We can’t predict tomorrow. We’ve been saying that the problem here is that we have old engines. Now we’re trying our best to maintain and make them operational,” he said.

He said engine 3 and 4 in the main power plant in Lower Base are currently being overhauled. Until they are fixed, he said, power outages would continue.

Sablan said he does not know as to when the engines’ repair can be finished “When they’re fixed, the supply is back to normal.”

CUC has four power plants: PP 1 and 2 in Lower Base, PP3 in Isley Field, and PP4 in Puerto Rico.

PP1 and 2 are being proposed for privatization, PP3 is currently inoperational, and PP4, which is run by a private firm, is being petitioned by local residents for immediate relocation due to noise pollution, among others.

PP1 and 2 reportedly supply 53 MW and 3.4 MG respectively, while PP4 supplies 12.40 MW.

Under normal conditions, PP1 and 2 should reportedly be supplying 81.2 and 15 MW respectively, and PP4, 19.5 MW.

Saipan’s daily power consumption is said to be at 120.2 MW.