CUC is determined to meet the demands of its customers for reliable power, water and wastewater services, he added.
He said the overhaul of Engines 3 and 7 marked CUC’s first step toward full operational recovery.
“It has been a story of persistence and a never say die attitude,” he added.
Muna attributed the success of the rehabilitation program to the support provided by Gov. Benigno R. Fitial, the Legislature and the U.S. Office of Internal Affairs.
In Dec. 2005, when then-Gov. Juan N. Babauta lifted the CUC state of emergency he also pointed out that the agency would not be able buy fuel without a government subsidy, Muna said.
The situation worsened as the engines were in dire need of maintenance, he added.
He said Fitial ensured that the lights stayed on by remitting $22 million in government funding through the end of fiscal year 2006.
In July 2006, Muna said, an emergency rate increase was effected and this allowed CUC to no longer depend on government subsidy to pay for its fuel purchases.
According to Muna, a temporary setback occurred due to an artificially imposed and unfunded rate reduction that forced the governor to again subsidize CUC fuel purchases.
In June 2006, the Retirement Fund rejected CUC’s application for a $40 million loan, prompting the governor to secure $2.6 million in 2006, $6.5 million in 2007, and $3.8 million in 2008 in federal funding to jump-start the rehabilitation of Power Plant 1.
Muna said Fitial was able to secure emergency legislative support to allow CUC to fund a temporary power contract with Aggreko on Aug. 3, 2008 when the power plant was on the verge of complete operational collapse.
CUC paid Aggreko for temporary power services from loan proceeds secured from the Marianas Public Land Trust, he added.
The Aggreko contract costs $6 million.
The MPLT loan also provided CUC with enough funds to pay its independent power producers — the Pacific Marine Industrial Company and Telesource that were not paid for many months and were critically challenged in continuing services without financial relief, Muna said.
Aggreko started delivering an initial 10 megawatts on Sept. 12 and 15 megawatts by Sept. 30.
Muna said CUC decided to perform the overhaul and plant rehabilitation after realizing that the bids from contractors would exhaust all identified funding.
He said they have to pursue the improvement of other generators and equipment to ensure reliable power production of 40 megawatts from Power Plant 1.
With Wallon Young joining CUC last February, CUC is now confident to achieve its 40-megawatt goal by September when the Aggreko contract ends, Muna said.
He thanked CUC’s power plant management, staff and employees who remained dedicated and “saw CUC through its darkest hours.”
