Telesource, the sole power supplier on Tinian, announced that CUC has failed to pay its May 2008 note and production, operation and maintenance fees.
Last Friday, Telesource said, “All reasonable people will recognize that non-payment by CUC will cause disruption in power services on Tinian.”
Sen. Jude U. Hofschneider, R-Tinian and chairman of the Senate Committee on Resources, Economic Development and Programs, told CUC Executive Director Antonio S. Muna in a letter that water services have been suspended.
The senator said, “If the suspension is due to non-payment of obligations to the power producer [Telesource] then I strongly urge you to address the matter.”
“CUC has to pay Telesource because that’s part of the contract,” said Sen. Joseph M. Mendiola, Covenant-Tinian and vice chairman of the Senate’s Committee on Fiscal Affairs. “If they’re in violation of the contract, they should declare CUC by default.”
According to Telesource, “We have not received timely payment on outstanding production fees (approximately $350,637) and outstanding operation and maintenance fees (approximately $282,826) that are owed to us under the Power Agreement, which are breaches of that agreement.”
Last week, Telesource denied that it was paid $357,000 by CUC.
Rep. Stanley T. Torres, R-Saipan, faulted CUC for the disconnection of power utility against Tinian residents.
CUC is the one “cutting Tinian’s power,” he said, adding that the agency’s outstanding balance has caused the power outages on the island.
“CUC is directly at fault,” he said.
Rep. Raymond D. Palacios, Covenant-Saipan, said “CUC should try to settle its obligations. As a legislator, I don’t want to see our people suffer.”
CUC owes Telesource over $800,000.
