In the next few months, he said, CUC will gather information on how to stabilize its water and wastewater rates by July this year.
Muna said CUC administers three utility systems — power, water and wastewater — and will prepare a plan indicating the specific revenues and expenses of these utilities.
“Something to bear in mind — this is a three-utility system, so a lot of funding come and go,” he said. “We need to put a plan together that will start to delineate specifics.”
He wants to see a proper reporting of CUC’s financial activities so it can determine what expenses are truly needed for its power, water and wastewater services.
He said CUC is looking into stabilizing its overall financial capability despite the troubled situation of its power engines.
Muna agrees with the findings of Georgetown Consulting Group Inc. which reported that CUC’s situation is “totally intolerable and demonstrates a level of past management neglect.”
Muna noted that the engines of Power Plant 1 were already deteriorating during the administration of then-Gov. Juan N. Babauta.
He said when Babauta lifted a state of emergency declaration in Dec. 2005, he informed the Legislature that CUC was still financially unstable.
Georgetown Consulting Group said the power plant facilities of CUC were in “horrendous condition,” and the exception were those managed by private contractors.
Muna said Gov. Benigno R. Fitial is trying to reverse the process.
But CUC’s financial constraint continues to be a challenge, Muna added.
It is not sufficient to put the engines back on line, he said.
CUC must also have a good financial and operating plan.
The plants, moreover, must maintain a stable power production sufficient to meet the demand of the consumers, he said.
But CUC also has to pay the entities that help it achieve operational stability such as Aggreko, Pacific Marine and Industrial Co. Telesource, Mobil and Shell, Muna added.
CUC is renting Aggreko’s generators for over $500,000 a month.
PMIC operates Power Plant 4 while Telesource runs the Tinian power plant.
Mobil and Shell provide fuel to CUC.
“If we can’t pay them our operational stability will be endangered,” he said.
