‘CUC fuel supply enough until mid-February’

Gov. Benigno R. Fitial said the Commonwealth Utilities Corp. could not sustain power generation this February, justifying his declaration of a state of emergency that placed the autonomous utility firm under his direct control.

Fitial said the fuel supply for CUC’s power plants was due to run out last Tuesday, but noted the scheduled tanker delivery of fuel on the same day, which would help the utility firm sustain power generation until mid-February.

Press secretary Charles Reyes Jr. could not say early Wednesday night if the fuel tanker arrived on Saipan on Tuesday as scheduled. However, the administration announced no imminent power interruption.

Fitial disclosed that CUC was purchasing three-day supplies of fuel before the scheduled tanker delivery. The fresh supply is expected to sustain power generation until Feb. 15.

“I find that after Feb. 15, 2006, CUC will be unable to pay for its fuel oil supplies; its generation levels are already reduced to almost zero reserves,” Fitial said. “Without electricity, the CUC water and wastewater pumping systems will fail. These conditions present an extreme, immediate and imminent emergency.”

The governor said his declaration was necessary to ensure “the continued provision of power to critical CNMI public health and public safety facilities, the continued provision of electricity to our schools, homes, and work places, and the continued operation of our water and wastewater systems.”

He said the declaration would also ensure an uninterrupted power supply to businesses.

The declaration also suspended the power of CUC’s board of directors, all of whom did not tender their courtesy resignation despite calls by the new administration.

Besides CUC board member Herman Sablan, who had already vacated his post, only board member Joe Torres has disclosed tendering his courtesy resignation. Torres headed the Fitial administration’s transition committee for the CUC.

The CUC board includes chair Frank Guerrero, and members Alan Perez, Laura Manglona, and Rufina Miles. Guerrero had said he would not resign from his post until the new administration explicitly tells him to do so, and that he intends to complete his term with the board until April 2006.

The emergency declaration suspended all regulatory statute provisions and regulations applicable to the CUC and empowered the governor to reprogram funds to the beleaguered utility firm to address the power crisis.

Last Jan. 6, the CUC received some 1.1 million gallons of fuel, which were expected to sustain power generation for the next 18 to 20 days. The CNMI government gave CUC $2 million to pay for the fuel delivery by Mobil.