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Proposed Power Rate Hike
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Posted on Apr 23 2001
The Issue: CUC’s proposed rate hike in utility (power) bills to make up for umpteen obligations.
Our View: It may be a legitimate proposal but CUC must make drastic cuts in operations, first!
At a time when the economy consistently declines with hardship intensifying at every level of the Northern Marianas Community, a power rate hike in utilities would do nothing but drive up the cost of goods and services here.
This against the obvious reality that the utility agency needs to meet its obligations with vendors in order to continue the level of service it now provides every island community. It’s a dilemma that warrants realistic answers, a dilemma that could very well bring the CNMI to its knees.
It’s a matter of credibility in what is being proposed versus recent excesses of the utility agency: from generous salary raises to first class trips to Texas that recently ended in Enron pulling out of the deal after the award. It simply means then that the onus to proving its case with believability rests with the CUC.
It means the ability to cut excess fat on every corner, including the painful choice of a reduction in work hours for all CUC employees. It may not be a politically popular idea, but one that the Commonwealth Ports Authority implemented successfully over the last year in order to meet its debt service and other obligations. It’s all a test of real management skills right smack in the center of a very difficult situation.
We’ve advocated privatization of the utility agency in order to free-up millions of hard-earned public funds for use in other essential areas. It seemed to have fallen on deaf ears. Perhaps CUC is at a juncture right now when it must seriously consider privatization so it is run in business-like fashion. It’s good for consumers and every taxpayer! Think about it. Si Yuus Maase`!
