Two to 4 hotels, if connected, could help lower CUC’s rates


The Commonwealth Utilities Corp. sees a potential drop in power rates for both residential and commercial customers if at least three to four hotels hook up to its electric grid.

During a CUC board meeting last Thursday, managing director Robert Young told board members that hotels going back to the CUC grid is a great way to reduce rates.

This subject came up during’s presentation on ways to lower utility rates for all CUC customers.

Young said these large hotels connecting to the CUC grid will provide the utilities agency the litheness to lower its rate.

“We will need two, three possibly four hotels to subsidize the rates,” Young told the board.

CUC board chair David Sablan Jr. asked Young if they could incorporate the addition of new hotels to the presentation and include incentives for hotels.

“Right now we need to entice people to come on to the grid and increase our revenue. I agree with Young because that is job number one, to get these people on,” Sablan said.

“If we get them on, then we can already consider a reduction overall in rates. The incentive rate now is an introductory rate so that they can come back to the grid,” he added.

Young disclosed that Duty Free Saipan is already a 100 percent sure they will go back to CUC’s grid.

“Those have never contributed to our revenue stream because they were off the grid and using their own generators. So if they come back on, that will be a plus cash for us. The group that remained has been paying a higher rate and not the introductory rate. If we have new groups coming on, then we can reduce the commercial rate more and the rate will go down,” Sablan said.

Jayson Camacho | Reporter
Jayson Camacho covers community events, tourism, and general news coverages. Contact him at

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