J. Scott Magliari & Company, which audited CUC’s financial statement for fiscal years 2010 and 2009, reported the corporation spent $54,877,419 for production fuel in 2010.
In 2009, the same expense totaled just over $47 million.
In 2008, however, CUC spent over $81 million for fuel due to the high prices then.
CUC’s power plants on Saipan, Tinian and Rota are designed to use diesel fuel.
“Production fuel is the single largest expense of CUC, accounting for 60 percent of operating expenses in 2010, 53 percent for 2009 and 69.1 percent for 2008,” the audit report said.
The report said CUC is seriously evaluating its diesel-powered electrical facilities to cushion the impact of soaring oil prices.
Part of its future plans is to use renewable energy generation, or REG, to produce electricity.
A net-metering policy is also expected to go into effect this year as part of that REG, the report said.
“Customers reeling at the high price of electricity can choose to self-generate using renewable energy source and sell excess power to CUC.
Prospective investors with the will to install utility size REG of over 500 kilowatts will be invited to bid to supply to CUC grid. CUC will support the effort of bona fide companies interested in renewable energy in the CNMI particularly in the areas of solar, waste gasification, geothermal and wind,” it said.
“On Saipan, the existing base load plants fired by expensive diesel fuel have a remaining economic life of seven to 10 years. CUC will start planning for replacement that has at least a 10 percent REG component depending on the available technology,” it added.
CUC said its ultimate goal is to reduce the cost of electricity in the CNMI without sacrificing reliability of service.
