Press Secretary Charles P. Reyes, in an e-mail, said the governor “appreciates the speaker’s interest in CUC’s status and progress and has already asked [CUC Executive] Director Tony Muna to provide further updates on the progress achieved to date, as well as on action items still required, including changes in legislation.”
Reyes said the governor has “emphasized the critical time frame of less than one year to resolve CUC’s problems. As you know, the Aggreko engines are temporary and the Aggreko contract is only valid for one year.”
CUC pays Aggreko $504,000 a month.
In his Nov. 17 letter to the governor, Palacios, R-Saipan, said “after months of waiting, I am acknowledging your directive to [Muna] to submit a report to the Legislature on what CUC has done so far, what CUC will do in the future and the challenges the corporation faces in the next six months.”
Palacios said Muna has provided some information to lawmakers through informal meetings.
“But those recent discussions are not adequate substitutes for the written reports required by law,” the speaker added.
He said CUC’s report should include its plans to contract utility and technical experts to assist the agency, “improve its governance, planning and implementation, and…a comprehensive financial strategy for meeting the costs of these measures.”
Palacios assured the governor that “when it comes to solving CUC’s problems on Saipan, the House leadership has held the belief that cooperation with the administration is paramount.”
He added, “If you recall, early on in our term, we passed legislation removing the statutory restriction on CUC’s ability to set electrical rates and appropriating funds for the purchase of fuel for CUC. We have also authorized CUC to utilize a set of tools to make more efficient its operation and management.”
According to Palacios, “This spirit of cooperation will continue so long as the administration pursues initiatives for improving CUC’s power generation system on Saipan that are feasible and make economic sense to implement.”
