on Saipan, according to documents obtained by Variety.
CUC Executive Director Tony Muna told the Legislature that the agency incurred revenue loss of $1.651 million from Oct. 2007 to April this year due to the load shedding or rotating blackouts throughout Saipan’s villages.
Using as base income the July fuel rate of 41.3 cents per kilowatt hour, Muna said CUC’s annual projected revenue will total $133.9 million with load shedding in effect — down by over $19 million to $153.8 million if there is stable and continuous power supply daily on Saipan.
Muna said CUC has 11,633 residential customers who buy about 8 million kwh of power each month from the utilities corporation, costing $3.764 million.
Their consumption went down to 6.9 million kwh due to blackouts, leaving CUC with a huge revenue shortage.
CUC has 3,061 commercial customers who used to consume 13 million kwh of electricity costing $3.2 million.
They now consume less than 2 million kwh each month due to blackouts.
Government accounts, on the other hand, buy only $2 million worth of electricity from CUC every month.
Muna submitted the financial analysis to the Legislature which has to approve CUC’s proposed $4.5 million loan from the Marianas Public Lands Trust.
CUC needs the money for its fuel supplies and to make an initial payment to U.K.-based Aggreko Intl. Projects Ltd., which has proposed to provide Saipan with temporary power for a year under a $6 million contract.
Muna said Aggreko will address Saipan’s power crisis and ease CUC’s burden on maintaining its power engines.
He said CUC could save over $66,000 a month if Aggreko provides 15-megawatt generators to the utilities agency.
Aggreko, he added, will provide its own personnel to man the generators and provide certain lube oils.
Muna said CUC and the administration were not misleading the public when it signed the June 19 Aggreko contract.
According to the contract, the CNMI’s acting government financial chief attested “that there are sufficient funds available for the execution of this contract.”
“The…certification language is currently standard for all CUC contracts,” Muna told lawmakers. “The certification in funding as stated…is prospective in nature.”
He added, “Payment of liabilities arising from the Aggreko contract will be from realization of projected revenue increases as a result of 24-hour power service, plus cost savings as a result of not having to implement a load shedding schedule, manage a blackout and using more efficient generators.”
CUC needs at least 41 megawatts to meet the electricity demand on Saipan.
CUC’s current capacity is 10 megawatts short.
