Babauta may issue order to separate sewer and water

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Posted on Dec 20 2004
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Gov. Juan N. Babauta is inclined to issue an executive order to effect the separation of sewer and water divisions from the Commonwealth Utilities Corp. if the needed legislative amendment is delayed.

“The way to separate it is through legislation, but if it’s going to take a long time, I’d issue an executive order. That’s being contemplated,” said Babauta in an interview.

Babauta, who flew to Hawaii Wednesday for a two-day trip, said he met with the engineers and officials of the State of Hawaii Water and Sewer Department to consult them on the separation of services.

“We want to learn from them,” said the governor.

Right now, he said, his administration sees the separation of both services as “the way to go.”

Earlier, the CUC board of directors adopted a resolution urging the Babauta administration to propose to the Legislature an amendment to the CUC Act to remove the water and sewer operations from the utility firm’s responsibility.

This leaves the CUC with the management of only one area—power generation and distribution—which is the only money-making branch of the corporation.

The CUC board said that getting rid of the sewer and water services would promote efficiency in the delivery of these programs.

CUC said that the Legislature may create a separate entity—which may be called the “CNMI Waterworks Authority”—to manage the operation of water and sewer services.

The proposed authority would be placed under the CNMI central government, while the CUC would continue to be an autonomous agency.

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