CUC asked to slash power rate charged to Dynasty

Tinian officials have prodded the Commonwealth Utilities Corporation to cut its power rate charged to large commercial users in the municipality in an effort to help the Tinian Dynasty Hotel and Casino hook-up with the island’s power plant.

Sen. Joaquin G. Adriano, chair of the Tinian legislative delegation, said they want the government-owned utility corporation to lower the present commercial rate of 16 cents to 12 cents per kilowatt-hour to ease financial difficulties confronting the hotel and casino.

The CUC board is reviewing the proposal which was broached during its recent meeting. Mr. Adriano expressed hope it will grant the request, after the initial attempt drew lukewarm response from utility officials.

Tinian lawmakers recently passed a resolution urging CUC to offer a special rate to bulk commercial users of its 10-megawatt plant on the island. This will cover establishments that use 2.5 MW of power each month or at least 50 percent of the current feeder or grid.

They will seek the 12 cents per KWH rate for the next two years, after which the utility firm can reinstate the usual 16 cents rate on the third year of the program.

According to Mr. Adriano, this will enable the Dynasty to immediately hook-up with the island power as the hotel and casino has yet to recover from the impact of the economic crisis that has pulled down its revenues since its opening in 1998.

Although Dynasty is currently breaking even in their business operations, the lawmaker said it is still incumbent upon local leaders to assist of the island’s biggest investments.
” I guess they still need that because when you say they are breaking even, they are not making money. If we help them, it will do a lot more,” he told in an interview.

Mr. Adriano said he hopes the utility board will soon come up with a decision so that the Tinian delegation can seek other ways to help investors.

“I am positive they will grant our request because we met with the new chairman [Jesus T. Guerrero] and they gave us assurance that they are working on that,” he added.

The Dynasty has been asking CUC since last year to provide them special discounted power rate and waiver on other fees associated with using its plant on Tinian because of its shaky financial conditions.

Aside from paying 16 cents per KWH — higher than what they would have spent using its own generator, the hotel and casino will have to remit a security deposit equivalent to two months of electricity bills as well as to pay for the cost of installing transformer linking its system to the plant.

The Voice of America relay station on Tinian last year was granted the adjusted residential rate of 11 cents after the federal agency told CUC that it would be cheaper for them to use their own power generators than to hook-up with the island power.

In exchange, VOA agreed to undertake more than $1 million worth of infrastructure improvement on the island, including installation of power poles and distribution line.

Utility officials have been reluctant to cut its commercial rate, saying that it may jeopardize their plan to expand the $12 million-plant, which opened in February 1999, into a 30-MW facility.