But Muna said the 17 percent rate credit to customers “is acceptable to CUC.”
Lawmakers still mulls over a 30 to 50 percent rate credit.
In light of CUC’s financial dilemma, Muna cannot say when the rate credit should be implemented.
CUC has to make payments with Telesource CNMI Inc., Pacific Marine and Industrial Corp., DCM Group Inc., and other companies.
Telesource is the exclusive power supplier on Tinian and CUC owes the company over $800,000.
PMIC, the company that runs Power Plant 4 in Puerto Rico, and CUC owes about $1.6 million.
DCM, which conducting repairs and maintenance at Power Plant 1, has a $5.1 million contract with CUC.
CUC is still trying to identify the funding source for its newly signed contract with the U.K.-based power producer — Aggreko International Projects Ltd.
“We need time to restructure the financial situation of CUC to implement the credit rate” in view of the increasing fuel cost, Muna said.
Muna said, CUC cannot afford to buy fuel if the rate credit will be implemented now, he added.
CUC will soon send a letter to Mobil to ask “for some relief.”
Mobil is CUC’s oil supplier.
Sen. Maria T. Pangelinan, D-Saipan, asked Muna if CUC has “receivables.”
Muna said their monthly collection amounts to $12 million only.
He earlier said that CUC’s monthly cash outlay was about $9 million.
The Senate committee conducted the public hearing to discuss the following bills:
• House Bill 16-120, to establish an electric fuel charge credit fund.
• Senate Bill 16-28, to mandate CUC to lower water rates for commercial farmers and ranchers.
• H.B. 16-99, to mandate CUC to establish standard meter reading procedures to ensure that customers are billed accurately.
• H.B. 16-77, to privatize CUC and effect reliable and affordable utility rates.
All members of the Senate PUTC were present during the public hearing.
Sen. Paul A. Manglona, R-Rota, is the chairman of the panel, while Senate Floor Leader Jude U. Hofschneider, R-Tinian, is the vice chairman.
Its members are Pangelinan, Luis P. Crisostimo, D-Saipan, and Paterno S. Hocog, R-Rota.
