The Commonwealth Utilities Corporation Board of Directors and management conduct a meeting on Aug. 7, 2025.
CUC photo
(CUC) — The Commonwealth Utilities Corporation’s management team, led by Executive Director Kevin O. Watson, MPA, shared a series of developments during its regular board meeting on Aug. 7, 2025, reflecting operational improvements and progress toward renewable energy goals.
Clean audit
During the meeting, CUC’s auditor revealed that the corporation’s fiscal year 2023 audit has an unqualified opinion, confirming that the financial statements are fairly presented. Only two minor internal control findings were noted, both of which are being addressed through a corrective action plan. CUC’s Fiscal Year 2024 audit is nearing completion, bringing the corporation fully up to date on its financial reporting.
Operational excellence
In late July, District Judge David O. Carter visited CUC’s power, water, and wastewater facilities and held a status conference. While speaking with operators, he expressed how impressed he was with the improvements since his last visit earlier this year.
Judge Carter also reviewed CUC’s progress on reducing Non-Revenue Water or NRW, noting that the Gualo Rai Tank Service Area had lowered NRW to approximately 30% through the efforts of the water engineering and operations team. This achievement has contributed to an overall system-wide reduction to 55%, resulting in the lowest NRW for Saipan. Current NRW levels are 63% for Tinian and 60% for Rota.
As part of the visit, the Stipulated Order No. 2 Technical Manager for Oil delivered a presentation, followed by the water and wastewater teams, highlighting CUC’s compliance progress, operational improvements, and commitment to meeting environmental standards.
Reserve generator funds
The CUC Board of Directors approved the creation of a reserve generator fund to support the future purchase of new generation units (gensets), ensuring the corporation can maintain reliable service for its customers.
Renewable energy and sustainability initiatives
On Aug, 1, 2025, CUC’s management team filed a petition with the Commonwealth Public Utilities Commission for its Request for Proposals to obtain an Independent Power Producer for the Solar Photovoltaic Generation with Battery Energy Storage System on all islands in the CNMI. CPUC, along with its consultants, reviewed the RFP package and provided comments for CUC to consider prior to their final review and approval to advertise. The targeted award date for the Solar PV Generation with BESS for all islands in the CNMI is tentatively set for December 2025, with construction anticipated to begin in July 2026. The RFP timeline is subject to change, depending on CPUC’s approval to award the contract.
“These results show that CUC is moving in the right direction. Our operations are improving, and we are investing in a cleaner, more sustainable future,” stated Executive Director Watson. “I’m proud of our team’s hard work and dedication, and we will continue to focus on delivering safe and reliable services for the people of the CNMI.”
