to take over CPA. But this is the same politician who, as a candidate in 2005, promised to cut power rates and usher in Better Times, with a peanut butter and/or shoe factory thrown in for good measure. We don’t think we’re going out on a limb here when we say that no one believes him anymore.
There is, to be sure, no justification for the CPA board members’ failure to get a quorum. But the Constitution provides ample guidelines for the removal of erring or inutile board members short of abolishing the board itself.
Now the governor, in his executive order, delegates responsibilities to the new acting executive director. Nothing extraordinary — except that all employment contracts must now be routed through the governor. In other words, CPA can conduct business as usual except that it can’t hire anyone without the governor’s say-so.
As we noted last week, the bond trustee hasn’t indicated that it has any plans to trigger a technical default, and appears satisfied with the revenue enhancement plans presented by CPA to the Legislature. So what gives?
Obviously, administration officials are being less than candid about their reasons for taking over CPA, its financial situation and how it got to this point.
All this must be explained in order for the Legislature to respond in a favorable way. Since these explanations aren’t forthcoming, lawmakers should reject the executive order.
On and on
CUC’s new executive director wasted no time raising the power rates to cover fuel increases and other operational shortfalls. Now he asks for subsidies to help the indigent. Several lawmakers rallied to this cry and are moving to pass a bill to benefit people — i.e., voters — in the lower income brackets.
However well-intentioned these lawmakers are — and aren’t they always well-intentioned — they are missing a very vital point. The price of power has gone up so much that subsidies are needed for the middle class as well as businesses. The average business now pays an outrageous sum for power and must also maintain its own power generation system, generators, maintenance and diesel. There is no doubt that businesses will end up having to pass this cost to their own consumers, but there is a tipping point when this is no longer possible. Businesses simply cannot charge too much while their customers’ paychecks are shrinking.
CUC continues to spout the conservation mantra seemingly unaware that most people have conserved as much as they can already. Some people have switched from electric to gas stoves; some cook outside on a small gas burner. Some people no longer use refrigerators, only ice chests. Some households are selling their air-cons for a song. Not a lot of takers.
CUC’s new executive director hasn’t indicated how he is going to overcome his operational shortfalls, long-term, with a dwindling customer base, higher levels of deferred payments, and even more disconnections on the horizon. And like other government agencies, including the governor’s office, there is a lot of talk and threats of CUC workforce reductions, but hiring continues and they are not all in the essential service category.
How long can this government continue with the failed policies of the past that are still creating unnecessary hardship for the people? Until the next gubernatorial election? But will there be enough voters left on island come Nov. 2009?
