With Reps. Froilan C. Tenorio, Covenant-Saipan, and Ramon S. Basa, Covenant-Saipan, absent the vote on the measure was 9 to 9 but after a short recess, Rep. Edmund S. Villagomez changed his “no” vote and House Bill 17-205 was passed, 10-8.
Villagomez, Covenant-Saipan, changed his vote after getting an assurance that the measure will not burden CUC consumers in the future.
Those who voted against H.B. 17-205 were its author, Rep. Stanley T. Torres, Ind.-Saipan; Reps. Francisco S. Dela Cruz, R-Saipan; Ray. A. Tebuteb, R-Saipan; Janet U. Maratita, R-Saipan; Tony P. Sablan, R-Saipan; Trenton B. Conner, R-Tinian; and Fredrick P. Deleon Guerero, Ind.-Saipan.
Torres didn’t like the Senate amendments to his bill that senators described as “minor” changes to some of its language.
Those who voted yes aside from Villagomez were Speaker Eli D. Cabrera, R-Saipan; Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan; House Floor Leader George N. Camacho, Ind.-Saipan; Reps. Sylvestre I. Iguel, Covenant-Saipan; Raymond D. Palacios, Covenant-Saipan; Ralph S. Demapan, Covenant-Saipan; House Minority Leader Joseph P. Deleon Guerrero, R-Saipan; Joseph M. Palacios, R-Saipan; and Teresita A. Santos, Ind.-Rota.
Those who opposed the measure expressed concern that the debt will soon result in higher power bills.
Dela Cruz, Fredrick Deleon Guerrero and Sablan asked CUC Deputy Director Allan Fletcher if the measure will result in public debt.
Fletcher said no.
But Deleon Guerrero noted that right after the same question was asked a few months ago, CUC raised its rates.
“How can I trust your words now?” he asked Fletcher.
CUC chief financial officer Charles said when the bill was discussed the first time around, the rate had already been raised.
Dela Cruz and Deleon Guerrero were not satisfied with the CUC officials’ answers.
Dela Cruz said businesses are shutting down which will reduce CUC revenue.
“Those businesses will not be paying you anymore because they’ll be gone so where are you going to get the money to pay this loan?” he asked the CUC officials.
Demapan asked Fletcher if hotels, the biggest users of power, are hooked to CUC.
Fletcher said most hotels generate their own power.
When Demapan asked him why, Fletchre said, “I don’t know about the history but I’m aware CUC has not been reliable in producing power for them.”
House legal counsel Jose Taijeron explained that the measure won’t result in a public debt because technically, it is CUC that will borrow, not the public. But as to where the agency will get the money to pay the loan is another issue, he added.
H.B. 17-205 will authorize CUC to borrow $10 million from Independence Bank of East Greenwich, Rhode Island. The loan will be guaranteed by the U.S. Department of Agriculture, and will be used to fund CUC’s obligations under the stipulated orders lodged by the federal government against the utilities corporation.
