Tinian businessmen slams CUC's power rate increase
Tinian Chamber of Commerce President Phillip Mendiola-Long blasted the Commonwealth Utilities Corporation for its recent decision to increase rates on Tinian and Rota by 300 percent.
“These guys are out of their mind if they think the communities of Tinian and Rota are going to stand by and allow them to raise the power rate by 300 percent, ” said Mr. Mendiola-Long.
CUC is now reviewing the imposition of 32.45 cents per KWH for Tinian residential consumers and 47.2 cents per KWH for commercial consumers.
“How do they think businesses and families are going to survive such a drastic rate increase? It is bad enough that we are suffering a hampered economy, not to mention, Tinian and Rota only receive the economic crumbs from Saipan, now we have CUC treating Tinian and Rota like foreign countries,” he added.
Saipan power rates will only be increased by 28 percent compared to the 300 percent increase for Tinian and Rota.
“For CUC to treat Tinian and Rota differently is like a father charging rent to his toddler children. Do they really expect the under developed islands of Tinian and Rota to be self-sustaining? If they do then why don’t we all (the citizens of Tinian and Rota) just pick and move to Saipan. We will abandon our homes, our land and the possible economic benefits in order for CUC to stop complaining about taking care of us,” Mr. Mendiola-Long said.
CUC said the subsidy of Tinian and Rota caused the aggravation of the power corporation’s current financial status.
“If they think we (Tinian and Rota) are going to buy that line, they must think we are stupid. What caused the “aggravated state” of CUC’s financial status was not subsidy, it was gross mismanagement and misspending. Just look at this Enron fiasco and the CDA obligation. Those two problems alone speak volumes about the state of CUC management.” Mr. Mendiola-Long said.
Mr. Mendiola-Long added, “CUC has to remember, that subsidy and business investment are two different things. CUC’s involvement in Tinian should be considered investments in potential business growth. If they don’t think there is potential on Tinian and Rota then privatize the two islands. CDA owns all the assets anyway, so I am sure CDA can find an potential investor who might want to privatize the two islands.”
For CUC to complain about a subsidy causing havoc with its financial situation, makes no sense, he said, adding that operating expenditure should be posted as a cost of doing business.
“And every business man knows that if the cost of doing business is larger than the revenue of that business, then the businessman should cut costs of business NOT raise the cost of the goods….If you raise the cost of goods, your customers run away and then your revenue falls. if revenue falls, then you are pushed back into the same position you were in the first place,” he stressed.
“My personal opinion is that CUC should be privatized immediately. You can not have a government agency to pretend to be a business. It just is not possible. CUC must chose to either be a government agency who serves the public or to sell out and privatize. They can not be both.: Mr. Mendiola-Long said.
The Tinian Chamber of Commerce will hold and emergency meeting on April 24 at 7pm at the Port of Call Restaurant. The meeting will be held to discuss the CUC power rate hike and sign a petition to the Governor and CUC stating the Chamber’s outrage at the rate hike.
