Gov. Eloy S. Inos made clear to lawmakers yesterday afternoon his administration\u2019s plan to oppose the U.S. Environmental Protection Agency\u2019s request for the federal court to appoint a receiver to implement some of the Commonwealth Utilities Corp.\u2019s projects, among other things.<\/p>\n
Lawmakers backed the governor\u2019s position during a closed-door meeting that was also joined by CUC executive director Alan Fletcher on Capital Hill.<\/p>\n
EPA had also asked the court to find CUC in breach of stipulated court order and in contempt\u2014something that the CNMI government also opposes.<\/p>\n
House Ways and Means Committee chair Tony Sablan (Ind-Saipan) and House Public Utilities, Transportation and Communications Committee chair Larry Deleon Guerrero (Ind-Saipan) agreed with the governor that the delays in the completion of court-ordered projects for CUC were the fault of CUC contractors \u201cand not CUC or the CNMI government.\u201d<\/p>\n
\u201cThe government is going to oppose EPA\u2019s petition for CUC receivership,\u201d Sablan said after emerging from the meeting with the governor.<\/p>\n
Sablan said the government wants to avoid receivership, which could eventually raise further the utility rates for CUC customers.<\/p>\n
The Ways and Means chairman said \u201cfunding is not an issue\u201d regarding the petition for receivership.<\/p>\n
\u201cThe pipeline and tank projects are funded by federal grants and funding is still there,\u201d Sablan said. Besides, there\u2019s also a contractor bond, he added.<\/p>\n
He said the CNMI government believes the leftover funding and contractor bond will more than suffice to complete the delayed CUC projects.<\/p>\n
\u201cWe hope the court will agree with us, not to move ahead with receivership,\u201d Sablan added.<\/p>\n
EPA is not seeking the appointment of a receiver for CUC generally\u2014at least for now\u2014but someone who will take charge of implementing the court\u2019s stipulated order No. 2.<\/p>\n
Stipulated Order No. 2 focuses on oil issues such as repairing and replacing infrastructure, managing tanks and pipelines, as well as spill prevention and response.<\/p>\n
House PUTC\u2019s Deleon Guerrero, for his part, said the CNMI government believes there\u2019s enough grounds to reject a motion to place some CUC projects under receivership.<\/p>\n
\u201cIt\u2019s not really our fault that the project has been delayed. It\u2019s the lack of action by CUC\u2019s contractor,\u201d Deleon Guerrero said. Like Sablan, Deleon Guerrero said grant money for the projects is intact and there\u2019s bond money by the contractors.<\/p>\n
Rep. Ralph Yumul (Ind-Saipan), who was also at the meeting with the governor, said he, too, opposes placing certain CUC programs under receivership \u201cbecause it will hurt all of us in the end as far as ratepayers are concerned.\u201d<\/p>\n
He said he attended the meeting with the governor to listen to the administration\u2019s plans, \u201cput politics aside and do what it takes to correct stipulated orders for the tank and pipeline [projects].\u201d<\/p>\n
\u201cWhen a receivership happens, we have to put funding upfront and that\u2019s funding we don\u2019t have. So as a member of the Legislature, we need to come together and work with the administration,\u201d Yumul added.<\/p>\n
Funding for CUC<\/p>\n
While funding for these CUC projects is not the major issue, lawmakers acknowledged that the government and its agencies need to pay their unpaid utility bills to CUC. <\/p>\n
That will ensure CUC properly maintains and operates its facilities and equipment and provide much better and reliable services.<\/p>\n
Currently, the Public School System, the Commonwealth Healthcare Corp., the central government, and other agencies owe CUC over $20 million in unpaid utility bills. This is in addition to millions of dollars that residential users also owe CUC.<\/p>\n
Sablan said the Inos administration is asking the U.S. Department of the Interior\u2019s approval in funneling capital improvement project, or CIP, money to CUC.<\/p>\n
He said that is a \u201cstrong indication\u201d that the government is helping to fund CUC.<\/p>\n
Deleon Guerrero, for his part, said among the governor\u2019s suggestions is to apply for a \u201cloan\u201d from the Marianas Public Land Trust \u201cto pay off a bit of PSS, CHCC debts\u201d to CUC.<\/p>\n
\u201cAnd I support him on that,\u201d the PUTC Committee chair added.<\/p>\n
As to other lawmakers\u2019 suggestion that the administration request Saipan casino developer Best Sunshine International Ltd. to use $10 million in utility vouchers instead to help fund CUC, Deleon Guerrero said the governor didn\u2019t want to dwell on this as Best Sunshine is currently dealing with land issues.<\/p>\n
Also at the meeting was Rep. Mario Taitano (Ind-Saipan).<\/p>\n
Rep. Ray Tebuteb (Ind-Saipan) also earlier suggested tapping the next $15 million annual casino license fee to fund CUC.<\/p>\n","protected":false},"excerpt":{"rendered":"
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