Babauta extends emergency control over CUC

The Babauta administration will keep control of the Commonwealth Utilities Corp. for another 30 days because of CUC’s continued lack of reserve power generation capacity.

In a Sept. 16, 2005 memorandum, Gov. Juan N. Babauta said that, although Engine No. 8 is back in full operation, Engine Nos. 3 and 4 at Power Plant 1 are still offline and undergoing emergency repairs.

“This declaration of a state of disaster emergency is made after finding that the recommendations and justifications that existed for the declaration…on Aug. 17, 2005 remain in existence and that emergency measures must remain in place in order to ensure the safety of the people of the CNMI,” Babauta said.

“As such, I find that the threat or danger to the CNMI caused by the lack of ‘back up’ or reserve power generation capacity; the continued need to initiate critical maintenance and repair of power generation facilities; and the uncertain financial condition of CUC and its ability to make all required fuel payments due to increased fuel costs, mandate the issuance of this State of Disaster Emergency Declaration,” he added.

The governor made the original declaration during his State of the Commonwealth Address on May 19, 2005. The declaration has since been renewed four times, with each extension lasting 30 days.

In his memorandum, Babauta said that the Legislature would be notified before Oct. 17 if the current declaration would be lifted or extended. He also promised to provide the Legislature a comprehensive report on the exercise of his authority.

The majority bloc at the House of Representatives said, however, that this had never happened since the original declaration was made.

“We have yet to receive a comprehensive and master plan. The consultation with the Legislature has been fairly limited or nonexistent,” said House leadership spokesman Charles P. Reyes Jr.

He also said the governor should have a deadline for the CUC state of emergency.

“It’s obvious that the governor hasn’t resolved the CUC crisis in all these months. He’s extending the state of emergency apparently indefinitely,” Reyes said.

The governor’s emergency powers allow the administration to assume full control of CUC and to suspend all regulatory statute provisions and regulations applicable to CUC, including procurement regulations.

The declaration also suspends the CUC board of directors’ power, authority and or responsibility. It authorizes the governor to reprogram all funds to address CUC’s problems.