To renew or not to renew

The latest renewal of Gov. Juan N. Babauta’s declaration of a state of emergency at the Commonwealth Utilities Corp. expired yesterday. The governor had not yet decided whether or not to keep his administration’s control of the utility.

Babauta said on Saturday that he would meet with CUC officials this week to discuss Saipan’s current power situation.

Specifically, he wants to know whether Engine 3 could be put back in operation to provide reserve power to the island. The governor also intends to discuss a plan to shut down Engine 1 for repair.

“It’s a decision I have to make in consultation with the [CUC] executive director and power managers,” Babauta said.

The governor made the original state of emergency 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.

Babauta last renewed the declaration in a Sept. 16, 2005 memorandum, where he explained that although Engine No. 8 was back in full operation, Engine Nos. 3 and 4 at Power Plant 1 were 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 insure 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 also said that the Legislature would be notified if the declaration would be lifted or extended before it expired. He also promised to provide the Legislature a comprehensive report on the exercise of his authority.

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.