Business group leader welcomes CUC return

Saipan Chamber of Commerce president Charles V. Cepeda welcomed the Fitial administration’s pronouncement that the Commonwealth Utilities Corp. will regain its autonomous status.

“It’s good that the administration is thinking things through and considering other options,” said Cepeda yesterday. “It means that the administration is being open-minded.”

Gov. Benigno R. Fitial said Friday last week that the executive order that transferred CUC to the Department of Public Works is only a temporary measure to solve the CUC crisis.

He said that, once CUC is “cured” of its financial woes, it will revert to its original status as a public corporation. Fitial said this would take place within the year. The administration hopes to solve the CUC crisis within 90 days.

Cepeda was among thse who expressed opposition to the CUC transfer to DPW, saying it would only result in more bureaucratic red tape.

He said that allowing CUC to be governed by a competent board remains the best approach.

House minority leader Arnold I. Palacios has likewise opposed the CUC transfer, saying it is too big an agency to be reduced into a mere division under a department.

He said that if the administration wants control of the agency, it could just have created a separate department for CUC under the Executive Branch.

The administration said Friday that CUC is currently insolvent. It said that CUC’s total net assets balance reflected a net deficiency of $13 million in fiscal year 2003 and $30.3 million in FY 2004.

The administration said that CUC’s financial solvency will be immediately restored if its over $100 million debt with the Commonwealth Development Authority is written off through legislation. If this is done, CUC’s net asset would immediately improve to $116.8 million.

At the same time, the administration aims to repair Power Plants 1 and 2 engines to be able to generate an additional 20 to 30MW, which would translate to more revenues.

Fitial said a revitalized and independent CUC would be “without political interference” and its rate adjustments would be subject to a Public Utility Commission.

A revitalized CUC, he said, will not only be posting a 100-percent rate recovery for its power, but also for its water and sewer services.