Muna said the Senate and the House of Representatives should help CUC address the “obstacles” to the privatization program.
He wants CUC and the Legislature to agree on how the privatization of the utilities agency can be pursued to ensure its success. (See story on page 6)
Muna earlier asked the Senate to eliminate what he described as “unfunded mandates and hidden costs” imposed by P.L. 16-17 on CUC.
P.L. 16-17 was enacted after lawmakers overrode the governor’s veto.
Muna welcomes the proposed removal of the $250 million price tag set by the law.
The price tag, he added, will certainly result in higher power rates since the private company that will take over CUC’s power division will eventually pass the cost of its investments to customers.
“If we privatize CUC it has to be market-driven,” Muna said. “Let us not set a minimum dollar amount like $250 million, because we’re going to end up paying for it.”
Muna has also asked the Legislature to remove the following provisions from P.L. 16-17: the requirement that CUC should pay for the costs of any review of CUC’s actions conducted by the Public Utilities Commission; allowing businesses licensed for eight years in the CNMI as pre-qualified responsible bidders regardless of poor past performances, precarious financial condition, and defective submissions; prohibiting the use of requests for proposals as a procurement method; requiring CUC to hire a U.S.-certified contractor to draft the invitation to bids and evaluate the bids; and restoring the CUC board of directors.
The Legislature, he added, should also remove the provisions requiring CUC to be in charge of maintaining and operating all of the Public School System’s water wells without providing money for it; and providing residential customers up to one year to pay off any outstanding balances in their accounts.
Muna said “correcting” CUC’s financial condition is one of his major problems.
The Legislature, he added, has been “very receptive” to CUC’s needs but he wanted a more “positive” approach in addressing the agency’s financial problem.
