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Tim woos peevish ex-CUC vendors
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Posted on May 17 2006
Lt. Gov. Timothy P. Villagomez met with California-based suppliers in an effort to get the Commonwealth Utilities Corp. back on their good side.
Villagomez said some vendors had ceased to honor CUC’s purchase orders because of the utility’s bad credit history. Most of these companies used to provide CUC with transformers, poles and conductors.
The lt. governor, who controls the utility pursuant to the state of the emergency declaration, met with the companies during his recent trip to the United States.
The main purpose of his travel was to attend a conference on coral reef preservation in Washington, D.C. But he made time to meet with potential investors and other businesses dealing with the Commonwealth.
Villagomez said he was trying to reestablish a good working relationship between CUC and the vendors.
“I told them that CUC is undergoing transformation…and financial rejuvenation. I think my being there and the good relationship I had with them in the past are going to give them an assurance that they’ll get paid if the goods come in,” said Villagomez, who is a former CUC executive director.
CUC is in the process of repairing engines at the power plant and preparing for the typhoon season.
Earlier, the utility had asked the Governor’s Office for $850,000 to purchase power distribution supplies such as power poles, transformers, transmission wires, insulators, and safety equipment.
CUC said it had not entered into a long-term supply contract for three years due to lack of funds.
As a result, CUC has been relying on whatever materials it has left on stock and sometimes, has resorted to salvaging and cannibalizing used materials. “The urgency of the need for the annual material inventory has become an even greater concern due to the approaching typhoon season,” CUC said.
