Power plants in peril CUC faces severe fund depletion

Officials of the Commonwealth Utilities Corporation underscored the need to source out an estimated $4 million solely for the maintenance of five power plants which supply electricity to the Northern Marianas.

Unless delinquent bills are paid in full and government agencies settle its utility debts, the agency may be forced to borrow money to finance the operations and maintenance of its five power grids, said CUC Board Chair Jesus T. Guerrero.

Mr. Guerrero disclosed that instructions have been relayed to officials of CUC to look into possible ways to raise the needed $4 million to cover the costs of maintaining and operating the power plants.

The agency hopes to immediately generate the amount to sustain operation of the power plants until delinquent accounts are paid before the end of the month.

The utility office owes Mobil Oil an estimated $2.9 million for its November shipments which arrive every three weeks. Last week, Mr. Guerrero said the oil company has already warned there will be no oil shipment unless the agency pays its outstanding balance.

He said utility officials will be doing a lot of prodding and lobbying at different government agencies to consider their present financial status and pay their accounts to help CUC’s operations.

Almost 52 percent of the overall receivable of the agency will be coming from different government offices including Department of Finance, Revenue and Taxation, Indigenous Affairs, Community and Cultural Affairs, and more than 30 others.

Another option being explored by the agency to generate additional revenues to sustain the maintenance and operations of the power plants is the possibility of a power rate hike.

Mr. Guerrero however maintained this remains to be the utilities corporation’s last resort. The possibility is looming as disconnection notices were sent out due to government’s failure to settle its utility debts amounting to $12.5 million.

“Hiking power rates will be the last resort, that is the kind of commitment we have to people, but we need money to maintain the power plants, it is a necessity or else the whole CNMI may be in blackout,” Mr. Guerrero said.

The government-owned corporation has already forewarned agency directors of the possibilities ahead should they continuously refuse to settle their bills.

The CNMI government owes CUC a total of $12.3 million even after payments were made last week. The department and agencies typically consumer $825,000 worth of electricity each month.