Some suggestions to solve CUC woes

Last night (Tuesday, June 17), approximately 200 CNMI community members came together to offer ideas and suggestions on how to make things better at CUC. Tina Sablan and I facilitated the event and had a short presentation that included objectives, reasonable demands, and different actions the community can take in improving our public utilities corporation.

It was moving to see such a diverse group of people come together and speak from the heart. It was evident from the testimonies and comments from our community members that they are willing to stand up and act as advocates for change. It is important we realize that this is only the first step out of many we must make in our journey to make things better for all of us in our islands.

For the short presentation, reasonable demands were put forward to gain support from the community. We must bear in mind that this was only the first community forum on CUC, but there must be others, and we should hold them in different villages. Here are the five reasonable demands that were supported by majority of those who attended. Yes, they can be altered or modified if someone comes up with better ones. The bottom line is, we need to start somewhere. I will list them and explain their purpose:

[B]A legislative oversight on CUC. [/B]

Let it be known that common citizens cannot subpoena individuals or records, but our legislators can. We can talk about illegal contracts and unfair or unethical practices at CUC, but it is difficult for us to get anywhere without real evidence of alleged violations. An oversight hearing is not a witch hunt if our leaders are going after specific violations and individuals who may have information to such violations. You have heard horror stories about CUC. It is important to know that they will only remain stories until our legislators work on exposing illegal or unethical practices. This will take time, but the end result is well worth it. Let’s stop talking about alleged corruption at CUC and start looking into it. I am sure OPA can offer their expertise and assistance with the oversight and can target the areas that must be looked into!

[B]Energy Summit. [/B]

The purpose of an energy summit is NOT to get a bunch of free lunches at a nice hotel and have a break from work. Its real intent is to have our leaders work with federal officials (Department of the Interior) in bringing out energy experts from the United States who can assist us in launching a CNMI-wide energy conservation plan! We can easily cut down on energy consumption if it is done the right way. Imagine retrofitting an office building so that it is energy-efficient and working with them and monitoring them to ensure that they are doing their best in conserving energy. How much savings could be realized if we did this with all of our government buildings and employees? If our leaders are unable to pull this off, then our business leaders should lead the charge. It is our businesses that are shutting down because of the exorbitant cost of energy, and it is only going to continue to skyrocket unless we do something about it. Conservation is key, and our government agencies must do their fair share if we are to bring down our costs! This energy summit must also address renewable energy initiatives, including net metering regulations.

[B]Legislate a fair, transparent privatization plan for CUC. [/B]

Just about everyone in attendance agreed that our government is not capable of running CUC and that it needs to be privatized. While we all embrace privatization, we also must warn our leaders from fast-tracking it. Our Legislature is acting too hastily in passing a privatization bill that will push for a privatization bid within 45 days. I applaud their dedication in moving toward privatization, but the bottom line is, something of this magnitude must receive public input and comment. What is most troubling is the fact that local preference was included in the bill. Why? Shouldn’t we be looking for a company that can give us the very best deal, as well as a company that has the best reputation and ability to run a utilities company? We need to forget about local preference at this point. But what really bothers me the most is that our Legislature has stated that OPA will not be allowed to assist in the bidding process! Why??? This is outrageous, and we must urge the Senate to hold public hearings and get input from our people before passing the privatization bill. I also question how they came up with the $250 million price tag. Wasn’t it $500 million originally? Can our legislators honestly put a fair price tag on CUC? Do they have the expertise and knowledge to ensure that we are not getting ripped off?! Yes, our government isn’t capable of running CUC, but rushing privatization may actually make things worse if it is not done right.

[B]Hire a qualified executive director for CUC with proper credentials. [/B]

I will be the first to say that our current executive director, Tony Muna, is doing his very best. I don’t think anyone doubts this. The problem is, this is one of the most critical positions in the CNMI and it must be filled by a person with experience and expertise in running a utilities company. If anything, I believe Mr. Muna would make an excellent comptroller or CFO. He specializes in finance and is great with money matters, but that doesn’t qualify him to run CUC. Would you have a person run Northern Marianas College if he/she never worked at a college? Would you have a plumber perform dental work on your teeth? Yes, these are absurd examples, but isn’t it absurd that we continue to put people in critical positions without the training, experience, expertise, and credentials? Certain jobs demand technical expertise, and CUC’s executive director position should be at the top of the list!

[B]Sign the stipulated order on water and wastewater. [/B]

We get so bogged down with our power woes that we forget about the fact that the CNMI has the worst water in the entire nation. We also have the highest number of fines. CUC has been involved in a lengthy negotiations process with the Department of Justice and the Environmental Protection Agency, and that an agreement had been reached between CUC’s former executive director, Tony Guerrero, and the federal government. The new executive director, Tony Muna, however, has yet to sign the order. Why isn’t this being signed? What is the holdup? We must adhere to federal regulations not only to avoid costly fines, but to ensure that we aren’t brushing our teeth and bathing in sewer water! We cannot put a price on the health and safety of our people.

* * *

We asked those who attended the forum on what actions we could take to push our leaders to act on our five reasonable demands.

The four possible actions to take were:

[B]Have everyone dispute their power and water bills.[/B]

It was interesting to know that many attending the forum admitted they were already disputing their power bills. One person had a $10,000 bill. Another was charged for using 27,000 gallons of water. One person had his power disconnected two weeks early and still had to pay an additional deposit and reconnection fee (oops, that was me!).

[B]Class-action lawsuit.

Gather and file formal complaints with CUC.

Mass demonstration.[/B]

After a healthy discussion on what would be the most appropriate action to take, the majority of the community opted for a peaceful, mass demonstration up on Capital Hill. The exact time and date will be announced later. Other courses of action will still be considered.

There were many wonderful comments made and recorded and we will gather them, compile them, and share it with you soon. Here are just a few out of the dozens of brilliant ideas and comments from our community members:

CUC’s line losses are at 25 percent and are a big reason why we pay so much. Rural Electric Association standards in the United States average 3 percent, and Guam is rated at 6 percent. If we cut down our line losses, we can cut down the fuel consumption, which will result in lowering our rates.

We could cut the price of generating power significantly if we switched back to bunker fuel oil, or black oil, instead of using #2 diesel oil. Guam is using black oil and only charges 24 cents per kilowatt hour.

[B]Establish a co-op instead of privatization. That way we are all investors. Kauai Electric did it, so why can’t we?[/B]

We must demand that CUC clean up its act as far as the billing/accounts payable/customer service is concerned and that they practice fair, consistent, considerate policies, practices, and procedures.

[B]Have the CUC subsidy apply to everyone across the board.[/B]

Net metering regulations—have people generate their own power through renewable energy sources and feed it back to the grid, but in a safe and approved manner that meets federal regulations and standards.

[B]Go to the villages and get support from the villagers. Not all of them can afford to drive all the way down to Susupe with the high price of gasoline.[/B]

My dear friends, please know that no matter what, we are all in this together. Let’s keep our eye on the prize, which is to DEMAND reliable, dependable, and affordable power for the entire CNMI!

For all the critics and pessimists, please realize that it is better to do something than to do nothing. It is better to speak out than to say nothing at all. And it is better to be an advocate for change than an advocate for the status quo. The bottom line is, anything you truly love is worth fighting for. I love Saipan. It has been my home for 34 years. I’d like it to be home for another 34. Will you join us or will you continue to sit on the sidelines and watch our islands crumble? The time has come for us to show our leaders that our people deserve the very best from them. Anything less will no longer be accepted.

Thank you all for coming and for your dedication in working toward a better CNMI. I want the public to know this forum wouldn’t have been possible without you.

I would like to thank Rep. Ray Yumul and my wonderful friends for helping us out during our initial meetings, and I would like to thank Reps. Ed Salas, Ralph Torres, Diego Benavente, Stanley Torres, Rosemond Santos, and Sen. Frica Pangelinan for attending. You cared enough to come and listen to the wishes of the community. We ask for your continued support and hope that you will take to heart of the comments and feedback from your constituents. Dangkulu na si yu’us ma’ase.

Should you have any questions or would like to meet, please feel free to contact me at 483-7361. You can also make comments on my blog at http://marianaspride.blogspot.com/. [B][I](Ed Propst)[/I][/B]