The governor, he added, may also allow the cash-strapped Commonwealth Utilities Corp. to raise its rates.
Studies showed that the rehabilitation of the Commonwealth Utilities Corp. power plants may take a while, Reyes said.
Asked about the source of funding for the possible six-month extension of Aggreko’s contract, Reyes said the administration may look into “expanding its arrangement” with the Marianas Public Land Trust.
CUC “borrowed” $3.4 million from MPLT to make a downpayment to Aggreko.
“We made an arrangement with MPLT and we don’t know if we can continue that…but it’s a matter of necessity, that’s why we’re trying to create a margin of safety for CUC,” Reyes said.
The governor, he added, may issue another executive order “to suspend [the Commonwealth Public Utilities Commission’s] recommendation” not to raise power rates for six months.
“CUC’s cash flow is precarious now,” Reyes said. “We need to give them the ability to meet their expenses and reserve capital in case of emergency repairs…and that’s what the administration is working on.”
Last Dec. 31, Gov. Benigno R. Fitial signed an executive order extending CUC’s state of disaster emergency.
Rep. Heinz S. Hofschneider, during Tuesday’s session, said the E.O. is “an attempt to completely suspend the privatization” of CUC’s power division.
Lawmakers overrode the governor’s veto of the CUC privatization measure, which is now law.
Hofschneider, R-Saipan, noted that since the installation of the Aggreko generators last September, “we have not received any communication and progress reports from CUC, or the administration.”
Hofschneider said “sole contracting” is the real motive behind the E.O.
“The [bill to amend the] CUC Privatization Act was [introduced] upon their request…now they [want] to completely suspend the privatization,” he added.
But Reyes said the E.O. does not aim to suspend the privatization of the power division.
“The E.O. is necessary in order to keep Aggreko generators going,” he added. “We just suspended some local environmental regulations so that we continue to have power flowing. It’s just a practical matter…and we’re always open to discuss issues with the Legislature.”
In light of the current state of CUC and the economy, he said, “we really need each other and [we should] give each other the benefit of the doubt and not be suspicious of each other’s motive.”
