‘No reprogrammed funds since CUC emergency declaration’

Gov. Benigno R. Fitial’s office submitted to the Legislature yesterday a 152-page narrative report on the declaration of a state of disaster emergency for the Commonwealth Utilities Corp., disclosing that no fund has been reprogrammed to CUC under this authority from Aug. 1, 2008, through April 30, 2009.

This, despite incurring $7 million in losses for water and wastewater services, and after paying Aggreko International $504,000 per month for the rent of generators since September 2008.

The report said payments to Aggreko were funded through CUC’s general revenues and collection from its energy customers, while financing for the used oil, water and wastewater challenges are expected to be met through CUC’s general revenues and collections.

“As of this date, no reprogramming of Commonwealth funds to the CUC has been required or taken under the authority of the disaster declarations,” the report said.

Fitial signed Public Law 16-9 on Aug. 1, 2008, to allow CUC to procure emergency power during periods of declared power emergencies.

The governor issued his declaration the same day through Executive Order 2008-10, and has been extending this every month.

On May 1, the governor extended the emergency declaration for another 30 days.

The 152-page second interim narrative report on the disaster declaration dated May 5 contains 14 attachments, including the governor’s report to the Legislature dated Sept. 29, 2008, eight executive orders, CUC’s PowerPoint presentation to the Legislature regarding the rehabilitation of Power Plant 1, and progress reports on stipulated orders involving used oil, water and wastewater.

It also outlines the measures taken to address the power crisis through renting generators from Aggreko, and in addressing used oil and water and wastewater challenges, as well as a financial plan for meeting the costs of the emergency and procurement under the disaster declarations.

The report said CUC has never made a finding that compliance is impossible under CUC and CNMI procurement regulations nor has CUC elected to procure any goods and services under the suspension authority granted by the disaster declarations.

“If in the future CUC procures any goods or services in this manner, CUC will fully document all such procurement activity for executive, PUC [Public Utilities Commission], public auditor and legislative review,” the report said.

Fitial, in his latest extension of a state of disaster emergency for CUC on May 1, said the Office of the Governor has been unable to find qualified persons for appointment to the CUC board of directors.