CUC emergency extended—again

For the sixth straight month, Gov. Benigno Fitial has placed the Commonwealth Utilities Corp. under a state of disaster emergency, adding new findings and conclusions justifying the need for the declaration.

The latest declaration was signed Dec. 31 and will last for 31 days.

Press secretary Charles Reyes has said CUC will most likely remain under a state of emergency as long as the emergency Aggreko generators are in place. The order suspends procurement regulations for CUC, allowing the utility company to retain the generators and any other equipment or supplies necessary to maintain reliable power. It also suspends local environmental regulations.

There are now 11 reasons Fitial said why the emergency is necessary. The recent additions include the fact that hundreds of water meters, recently installed to properly bill for water usage, have failed due to their “insufficiency for humid, saline climates.”

“While the well-respected supplier, Severn Trent, has agreed to replace the failed meters, this replacement will take time,” Fitial writes.

Also, the declaration cites the new rates set by the Public Utilities Commission on Dec. 20 as one of the findings for the emergency order. PUC adopted a levelized energy adjustment clause of 23 cents per kilowatt-hour. The rate will stay in place for three months, until the PUC reviews the rates and sets a new LEAC for six months.

“The order, in effect, freezes CUC’s rates for three to six months, including CUC’s fuel clause rates,” the emergency declaration states.

Fitial directs CUC to do the same measures as past declarations. They include: documenting procurement activity and notifying specific officials; contracting with an independent power producer for two years or less; providing within 30 days permits or compliance plans; procuring the labor and equipment needed to fix the Chalan Kiya distribution system and removing used oil from tank 104 and other barrels.

In November, the U.S. Department of Justice and the U.S. Environmental Protection Agency filed a civil suit against CUC to compel it to adhere to federal regulations governing water, sewer, power, and fuel. If certain stipulations are not met, CUC can be penalized up to $1,000 per day per violation for the first 30 days; $2,000 per day per violation following the 30 days; and $5,000 per day per violation for each day after.