Babauta pleads for CUC funding
Gov. Juan N. Babauta issued a desperate plea to the Legislature Thursday to appropriate funds for the Commonwealth Utilities Corp.
In a public briefing on the status of Saipan’s power crisis, Babauta admitted that his current practice of reprogramming money from other government agencies was “not the right thing to do.” But the lack of an appropriation measure by the Legislature forces him to do it, he said.
Babauta reported that the government was paying CUC close to $2 million a month. This includes $1 million in fuel subsidy and $700,000 in utility payments, plus fuel surcharge.
He noted that, while power generation fuel costs CUC about $6.2 million a month, the utility collects only $4 million from customers and $1.2 million in fuel surcharge.
The administration, which controls CUC pursuant to the May 19 state of emergency declaration, is covering the $1-million difference by taking money from other government agencies.
“I’m taking money from everybody else. I can’t continue to cough up $1 million a month because it’s simply not right. If you look at the big picture, we’re headed in the wrong direction,” Babauta said. “I’m getting desperate. I urge the Legislature to please appropriate some money for the difference.”
He also pointed out that the current appropriation of $5 million for the government’s utility expenses represents less than half of the government’s actual bill, which averages $11 million a year.
Furthermore, Babauta said that huge amounts were needed for the repair and maintenance of the generators at the power plant.
The recently completed repair of Engine No. 8 cost the government $400,000. Some $400,000 to $600,000 is needed to fix Engine No. 3 and another $500,000 is required for Engine No. 4.
