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CUC moves to remove water, sewer from its jurisdiction
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Posted on Dec 14 2004
The Commonwealth Utilities Corp. took a step yesterday toward removing the water and sewer services from its responsibility.
The CUC board of directors voted unanimously to adopt a resolution urging the Babauta administration to propose to the Legislature an amendment to the CUC Act to remove the water and sewer operation from the utility firm’s responsibility.
In the resolution, the CUC board of directors expressed belief that “it is in the best interest of the corporation to be divested of the operation of water and sewer services while maintaining for itself the operation of the power services.”
“The divestiture of the water and sewer services from the corporation will promote efficiency in the delivery of water, sewer, and power services, which will further result in reduced cost to consumers to these services,” a portion of the resolution reads.
CUC vice chairman Herman P. Sablan said the board wants the Legislature to create a separate entity—which may be called the “CNMI Waterworks Authority”—to manage the operation of water and sewer services.
Sablan, who heads the CUC committee on operations, said the agency authority would be placed under the CNMI central government. CUC, on the other hand, would continue to handle power generation and power distribution.
“We think that there’s a lot of good that could come out of separating water and sewer services from CUC,” Sablan said.
For instance, he said, it would be easier to meet with U.S. Environmental Protection Agency requirements because issues could be addressed more specifically.
He added that the separation would pave the way for a better billing process and eliminate the current system under which revenues collected from power services subsidize the water and sewer operations.
Sablan said CUC personnel would be revamped if the plan goes through, but he assured that existing employees would be protected during the transition.
“Specific issues will be addressed at a later date, once we see the response of the Executive Branch and the Legislature,” he added.
He said the resolution will be transmitted to Gov. Juan N. Babauta this week.
