House awaiting CUC emergency report

The House leadership wants to see a substantive report from the administration on the latter’s implementation of a state of emergency on utilities.

The 60-day emergency declaration expires Tuesday next week.

House majority leader Oscar M. Babauta said the Executive Branch has not made any indication that it would further extend the declaration.

“I have not even seen a report of the governor’s plan. We’re waiting for the governor’s submission on what has been done and what else he intends to do under the emergency declaration,” said Babauta.

When asked, the Governor’s Office said that CUC emergency reports have been submitted to House Speaker Benigno R. Fitial and Senate President Joaquin G. Adriano. It said a more comprehensive report will be submitted to the Legislature next week.

Gov. Juan N. Babauta declared the state of disaster emergency on May 19 amid recurring power outages on island. He said he would extend the emergency declaration up to 90 days, if necessary.

On June 19, the governor issued a memorandum extending the declaration for another 30 days, which ends next week.

As of yesterday, press secretary Pete A. Callaghan said there is no decision yet whether the declaration would be extended for another month.

The governor had said that he wants to accomplish three things during the emergency: hammer out a long-term fuel contract, the servicing of power plant engines in Lower Base, and expediting the power privatization program.

The first two goals had been met while the awarding of a contract to an independent power producer to privatize the Commonwealth Utilities Corp.; power plant remains in limbo.

The Executive Branch said this is going to take place “very soon.”

Authorities earlier planned to award an IPP contract before the expiration of the 60-day emergency. But sources said that parties may need “a little more time” to make final its decision.

CUC has a choice between Telesource Inc., which also generates power on Tinian; or Pacific Marine Industrial Corp., which operates Power Plant 4 in Puerto Rico on Saipan.

Some lawmakers earlier urged the governor to suspend the power privatization program for “lack of a comprehensive cost-benefit study.”

In particular, the Senate Committee on Fiscal Affairs called on the Executive Branch and CUC “to immediately suspend any action on the RFP until such time an analysis has been undertaken.”

Panel members, led by committee chair Sen. Joseph Mendiola, said the government has “alternatives” to privatization, such as making its own loan of $60 million to upgrade the power plant system, rather than allow a private company to apply for the loan.

Either way, senators said that such transaction would require the government’s 100 percent guarantee. They said the government can use future capital improvement funds as collateral for such a loan.