CUC rejects Tinian Dynasty’s plea for lower power rate

The Tinian Dynasty Hotel and Casino must pay the same power rate charged by the Commonwealth Utilities Corporation to its commercial customers, according to Executive Director Timothy P. Villagomez.

The board of directors of the government-owned utility firm has thumbed down requests for a special rate of 12 cents for the Dynasty, four cents lower than the 16 cents kilowatt-hour charged to commercial users.

“We have to understand that CUC operates in such a way to make sure that all industries and every single customers are identified and thought of, we cannot just work on one and ignore the others,” Mr. Villagomez said.

The hotel and casino, which is the biggest investment on Tinian, has been knocking on CUC’s door for a much lower power rate to help them at this time of financial difficulties facing the company.

Tinian officials, led by its local legislative delegation, have adopted resolution urging the utility corporation to cut the rate, but the board has apparently put its foot down despite numerous attempts in the past.

Former Gov. Froilan C. Tenorio took the Dynasty’s side during a recent board meeting, saying that by granting its request, CUC stands to earn income from the 10-megawatt power plant opened last year in the island municipality.

This would mean additional $275,000 in potential revenues, according to Mr. Tenorio, that have yet to be realized because the Dynasty still has to hook up with the island power.

But Zania M. Fleming, Tinian representative to the CUC board, believed it’s the Dynasty’s “mistake” for not finding out the fact that high-speed power generators the hotel currently has demand higher fuel costs.

“If they did their homework two years down the line, they would have not been requesting us [for a lower rate],” she told the former governor in the meeting last Thursday.

“We have to be uniform in our rates,” added Ms. Fleming as she noted that under existing laws, CUC can only offer special rates to federal agencies, schools and other charity organizations.

But when informed that the government corporation will not make money if Dynasty gets its wish, Mr. Tenorio immediately withdrew his position.

Mr. Villagomez also disclosed that the Dynasty will have to hook up with the main system to comply with federal regulations as well as the terms of the permit issued by the Coastal Resources Management.

“They are obligated to hook up [or they will be in] violation of EPA standards,” he explained. “If they are using this reduction of rate as a reason for not hooking up, [it] is a totally different story and it’s not that we did not want to assist [the Dynasty].”

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.