“We’ve to ensure affordable power rates,” Rep. Heinz S. Hofschneider, R-Saipan, said in an interview on Friday. “The privatization of power generation means granting a monopoly to a private company — that company will basically control our lives and if it will provide power based on fossil fuels, then how will that ensure affordable rates for the consumers? The price of oil might go up again.”
P.L. 16-17, the CUC privatization law, sets a $250 million price tag, which the Fitial administration and CUC believe is an unrealistic cost that may be passed on to the consumers.
Hofschneider, who is consulting with CUC as he drafts a bill to amend P.L. 16-17, said he will reduce the price tag, “but the renewable energy sources requirement is non-negotiable.”
P.L. 16-17 also requires the winning bidder to generate at least 50 percent of its power through renewable energy sources.
“Affordability is the bottom-line,” Hofschneider said. “We have to consider the income of the people. It is too stressful for the people and the community to pay too much for power that is not even reliable. They can’t enjoy the fruits of their labor — they can’t buy the things that their children need because they have to worry about paying for power first. That’s why I insist on renewable energy. We need to protect the public from high power rates.”
Hofschneider noted that power generation in most, if not all, U.S. jurisdictions is a profitable enterprise. “But CUC is not making money. Why? Because it’s too political. It’s run by the government whose track record in managing CUC is not good. Allowing a legitimate and qualified private company to provide power will ensure reliability — requiring that company to use renewable energy sources will ensure affordability.”
Hofschneider expects to finish the draft of his bill to amend P.L. 16-17 this week.
“I’m thankful to [CUC Executive Director] Tony [Muna] for telling us their concerns about the law — we are considering their suggestions. It’s also a relief to know that CUC and the administration are also in favor of renewable energy,” the lawmaker said. “We’re not really in disagreement — and our task now is to provide a more acceptable and clearer language in the privatization law.”
