“As of today, we have not yet received payment on the Promissory Note due on May 31, 2008…which is now overdue,” Telesource said. “This is a breach of the May 2008 note, as well as the power agreement.”
Besides the $180,000 May note, CUC needs to settle an outstanding fee of $350,637 and an unpaid operation and maintenance fee of $282,826 with Telesource.
Telesource said it has been reminding CUC “to make timely payments,” adding that any delay in payments will result in “serious consequences” for Tinian residents.
According to Sens. Jude U. Hofschneider, R-Tinian, Henry H. San Nicolas, Covenant-Tinian, and Tinian Mayor Jose P. San Nicolas, island residents have already been “denied electrical utility services from Telesource.”
The two senators said the power supplier has decided to suspend power services to Tinian residents because CUC has not settled its financial obligations with the firm.
Telesource said it cannot purchase adequate supplies like lubrication oil for the maintenance and operation of the island’s power plant.
“While we have tried to cooperate with you [CUC] to protect the power plant from third-party creditors and continue to provide the local community with power, our ability to do so always has been limited,” Telesource said.
CUC Executive Director Antonio S. Muna was not available for comment as of press time yesterday.
