‘I shall not stand down’

Dear Speaker Palacios:

In a recent communication, I noted that the residents of Tinian and Rota enjoy a CUC power rate that is lower than the cost to produce that power. The difference is made up by Saipan CUC users who overpay by approximately $5.6 million annually ($800,000 to Rota and the balance to Tinian). These subsidy numbers are accurate and no amount of complaining by members of the Senate will make them change. Fairness dictates that both Rota and Tinian should pay a higher CUC rate since it costs more to produce power there.

To my critics in the Senate I say thank goodness they have awakened! Perhaps they will come to recognize the inequity and try to help ease the burden on the long suffering residents of Saipan.

First and foremost, I am not blaming the residents of Tinian and Rota. I am responding, again, to their elected leaders’ critique. I didn’t mind when Tinian leaders bragged that they had 9 megawatts of power that they don’t need and they were willing to “donate” it as their contribution to our CNMI need. Instead they are asking for more than $3 million in payments? I think it is prudent to point out that in order to generate that power, and indeed all the power on Tinian, they rely on Saipan customers to pay for the diesel that runs their generators to the tune of $4.7 million in subsidies a year.

The Senate critics have noted that we are one Commonwealth and that half of Tinian is owned by the U.S. military (for the time being). They point out the military land lease payment went for the general use of the whole Commonwealth. True but that fee is far more than offset by generous contributions from Saipan taxpayers to both Tinian and Rota over the years. Lets look back 15 years to when both islands received $13M-$15M annually from the Treasury. Let’s subtract $5M as Saipan’s generous contribution to our sister isles. Over those few years that’s $75 million of Saipan’s blood and sweat used to keep the NMI as one Commonwealth and it should be noted that is way over and beyond the small sum the military paid for their use (or non-use) of Tinian.

Saipan power payers are bleeding. Senators go ahead and complain about my pointing it out if you will, but the fact remains that Tinian and Rota CUC customers are luxuriously enjoying electric power at the expense of Saipan’s blood and sweat.

What can we do to even up the playing field? Open a dialog and try to find equitable solutions rather than to throw barbs at each other. But if crying foul you must, don’t expect that I will stand down from decrying this unfair burden placed on the good citizens of Saipan. I shall not stand down.