CUC assures enough power—for now

Despite the few days left before its fuel stock is exhausted, the Commonwealth Utilities Corp. assured the CNMI yesterday that it will continue generating power, having received assurances from the Fitial administration that it would be provided more funds to buy fuel.

Following a meeting with administration officials, CUC board chair Frank Guerrero said the administration has assured him that it would continue providing funds to the utility firm for the purchase of fuel for the power plants.

“The administration is ready to come out with the government’s share,” Guerrero said, disclosing a meeting he had with acting Finance Secretary Eloy Inos.

Guerrero, who earlier said the Fitial administration should come up with an emergency declaration similar to what former Gov. Juan N. Babauta did to allow the reprogramming of funds to the cash-strapped utility firm, said such a declaration has become unnecessary with the passage of Public Law 15-1, which gave the governor broad reprogramming authority.

Last Friday, Fitial signed House Bill 15-33 into law, the first measure to become law under his administration. The law provides the governor with broad authority to reprogram funds available under Public Law 13-24, the last enacted budget law. This authority covers funds appropriated to all public corporations, autonomous agencies, and other entities of the CNMI government.

“He has the authority to access public funds for the CUC,” Guerrero said.

The authority, however, excludes funds restricted from reprogramming by federal law, federal grant conditions, CNMI constitutional prohibitions, and deposit and other security restrictions related to bond covenants and the financing of public projects. The governor also cannot touch trust funds invested by the Marianas Public Land Trust and the NMI Retirement Fund, and all funds appropriated under all local laws.

Also excluded in the reprogramming authority are funds of the Legislature, Judiciary, Washington Representative’s Office, mayors and municipal councils.

Guerrero said he has yet to find out from acting CUC executive director Tony Guerrero the status of the remaining fuel stock at CUC’s power plants. Executive director Guerrero couldn’t be reached for comments yesterday.

Last Jan. 6, though, the acting executive director disclosed that CUC received some 1.1 million gallons of fuel from Mobil, enough to sustain the utility firm’s power generation for the next 18 to 20 days. The CNMI government gave the CUC the $2 million to pay for the fuel.