By Gemma Q. Casas
Variety News Staff

SAIPAN experienced more than 2,000 hours in power outages during the past two years mainly due to the poor condition of its engines and inability to raise enough cash to buy fuel, according to data from the Commonwealth Utilities Corp.
CUC’s feeder outages summary for 2005 states that the island suffered a total of 788 hours and 12 minutes of power outages.
In 2006, 1,354 hours and 8 minutes were lost to power outages.
In both years, August posted the most hours lost due to blackouts — 414.36 and 284.35 hours in 2005 and 2006.
Pre-arranged or the scheduled rotating power outages due to limited electricity produced at various power plants was the major reason for the outages.
Power was cut off in various villages at intervals of two hours daily.
Other causes of power outages were various problems in the field and with the generation system.
Many residents and business owners are hoping that CUC’s plan to privatize power operations on Saipan will finally solve the crisis.
“We’re paying more than we can afford for electricity. Privatization better work,” a resident who asked not to be named said.
Roman Palacios, president of Saipan Stevedore who used to be the chairman of the Commonwealth Ports Authority board, said their power bills have gone up since CUC implemented the new, higher rates in July 2006.
Residential customers used to pay only 11 cents per kilowatt hour plus the 3.5-cent fuel surcharge per kwh.
Commercial and government customers both used to pay just 16 cents per kwh, plus the 3.5-cent fuel surcharge.
The new power rates require residential and commercial customers to pay a fixed monthly customer charge on top of fluctuating fuel and nonfuel rates.
Palacios said his company has been using power generators every other day to save on electric bills.
“Our power bills really went up so what we’re doing is we’re running our generators every other day to save money,” he said.
He said he has lost track of the government’s privatization project over time but “hopefully this will solve our power crisis.”
The prequalification bid to join CUC’s power plant privatization project is scheduled to end on March 12.
Only companies selected to prequalify will be allowed to compete in the actual privatization project which involves a 25-year franchise agreement.
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