CUC losing millions from Tinian Dynasty case

The Commonwealth Utilities Corporation is losing revenue — enough to subsidize the operation of its Tinian power plant — from the delay on the hearing of Tinian Dynasty Hotel and Casino’s permit violation case.

CUC legal counsel Robert Torres said millions in revenues, not only for the utility corporation but the whole of CNMI government, have been wasted by the delay.

He urged the Coastal Resources Management to immediately appoint a hearing officer to replace Jerry Cody who is currently assigned to hear the case.

Mr. Cody was recently ordered by Labor and Immigration Secretary Mark Zachares to recuse himself from hearing the case due to conflict of interest.

Mr. Torres said Mr. Zachares’ directive caused a snag on the scheduled disposition hearing yesterday which was supposedly officiated by Mr. Cody.

He explained that the secretary’s move is a direct interference with the adjudication duties of another government agency. Reports claimed Mr. Zachares is carefully being considered by the Tinian Gaming Corporation to be its legal counsel.

Because of these developments, CUC urged CRM to appoint Mr. Cody’s replacement and proceed with the enforcement hearing to prevent further revenue losses.

CUC also asked CRM to sanction Tinian Dynasty on its continued refusal to hook up to CUC’s 20 megawatt power plant regardless of CRM’s permit issued last year.

In June 1996, CRM issued a permit to Hong Kong Entertainment Investment, Ltd. for the construction of Dynasty Hotel. Under the provision of CRM, developers will connect to CUC services for 100 percent of the developers’ need.

But since the construction of Tinian Dynasty, the management only hooked up to CUC power plant in October last year and disconnected from the power plant days after.

CUC officials claimed that after this, the utility corporation has been losing an estimated $20,000 monthly revenue because there is no sufficient customers relying heavily on the 20mw power grid.

Mr. Torres said there is a need to immediately proceed with the enforcement hearing to resolve the problem. He said CUC has been developing infrastructure to bring in additional revenue capacity.

CUC officials were also disappointed over Mr. Zachares’ action since the utility corporation has spent significant amount of money for the Tinian power plant and the casino gaming industry will be gravely affected once the case drags on.

However, this was questioned yesterday by former Gov. Froilan Tenorio who claimed that CRM’s statutes provide no provision compelling any customers to hook up to a power plant.

If Tinian Dynasty can get cheaper power supply, there is no need to hook up to the power plant and pay more, Mr. Tenorio said. The former governor arrived yesterday at CUC hoping that the slated enforcement hearing will push through.

CRM earlier ordered Tinian Dynasty to pay a penalty of $370,000 and an additional $10,000 a day starting Jan. 8 for violating the permit issued by the coastal resources office. (EGA)