Babauta wants 4-year plan to solve utility issues

Alarmed by serious problems facing the Commonwealth Utilities Corp., Gov. Juan N. Babauta has urged CUC to work with the CNMI Executive Branch and adopt a four-year program to address all utility issues.

Babauta identified these problems as the collapse of the wastewater collection system, rising fuel costs, need for rate re-structuring, pending regulatory issues and dangers to the environment, problems with power supply and transmission, and the lack of reliable potable water.

“[The] restructuring of these problems can be accomplished if the Office of the Governor and the CUC Board put aside the differences we are having and join together in a united effort to identify and resolve these problems,” Babauta said in a letter to CUC officials.

He proposed that his office and CUC take a five-step plan and start with a joint announcement that both agencies have decided to join forces to address utility issues.

Then, the two agencies should acquire necessary technical assistance and publicly identify the abovementioned CUC problems, the governor said.

Afterwards, CUC and the Babauta administration should develop a program to address all CUC problems within a four-year period from the plan’s adoption.

Lastly, the two parties should implement the plan accompanied by an aggressive public information effort “to keep the public informed and supportive,” he said.

“The objective of this joint effort is to provide an acceptable level of utility services to all residents at the lowest cost possible while protecting the environment,” he said.

Specifically, he added, the joint effort aims to accomplish 24-hour potable water service, reliable source of power, provision of reliable utility services at the lowest possible cost, and compliance with all environmental requirements.

Babauta admitted that the 48-month program will not be easily accomplished. He noted that the plan will require extensive reconstruction of the sewer system, completion of the water system reconstruction, reduction of operational costs, restructuring of our power system, and significant rate increases within a very short time period.

“However, by explaining the problems to the public and making specific promises of performance, we can change these problems into an opportunity for significant progress and a demonstration of CUC board leadership,” he said. “This plan will require a significant commitment of effort to explain our program to the public, and willingness to take public responsibility for a commitment of performance within this 48-month period.”

The governor asked the CUC board to adopt a resolution authorizing three members to work with him and the attorney general to develop the plan before Friday. He also targeted to have the recommendations of the committee be adopted by the board next week.

As of yesterday, however, the CUC board has yet to take action on the governor’s letter. The board met on Tuesday, but adopted no resolution appointing members to the governor’s committee.

Saipan Tribune learned that Babauta, CUC chairman Frank Guerrero, and CUC vice chairman Herman P. Sablan left for separate off-island trips yesterday.

At least one CUC official has also expressed concern about Babauta’s failure to identify in his letter a funding source for the plan.