Only 1-week fuel supply—CUC

The Commonwealth Utilities Corp. disclosed yesterday that it only has a one-week supply of fuel for its power generators on Saipan, Tinian, and Rota.

CUC chief financial officer Charles Warren said the Saipan and Tinian power plants have about one week of fuel on stock, while it has a bit more than a week’s supply for Rota.

“We are still buying fuel twice a week for Saipan, about every 8-10 days for Tinian, and every two weeks for Rota,” he told Saipan Tribune.

Warren said the slow collection on government utility bills continue to present operational challenges for CUC.

“But so far we’ve managed to continue funding all necessary power plants and engine maintenance,” he added.

Warren said that CUC’s power production is currently more than adequate. It has 60 percent excess capacity on Saipan, 250 percent excess capacity on Tinian, and 400 percent excess capacity on Rota.

Based on April records, Saipan has a power generation of 45.9 megawatts; Rota has 5.2MW; and Tinian has 20MW.

He revealed that fuel use has fallen about 10 percent from fiscal year 2012 levels as a result of a decline in customer base and improved efficiencies.

CUC operates three power plants, which are all oil-fueled diesel engines. It spends between $60 million and $65 million each year on fuel.

Gov. Eloy S. Inos again declared this week a state of emergency for the utilities corporation, citing continuing concerns on two factors: fiscal constraints and lack of qualified U.S. citizens for many of their jobs.

“The emergency orders continue because of the continued fiscal issues, but also to allow CUC to continue to employ workers who are not U.S. citizens or permanent residents (e.g., CW). We have several dozen employees in this status. CUC has implemented training programs to help mitigate the issue, but the training will last for several years,” said Warren.

The CUC finance chief revealed that the agency has about 36 to 40 non-U.S. workers.

“We hope to have a sufficient number of U.S. workers trained by 2019, but a lot of this will depend on available funding. Funds are not only needed for the training programs but also for the payroll of the trainees,” he added.

CUC earlier disclosed the continuing cash flow problem at the agency, which is impacting its ability to sustain its daily fuel needs. Recently, the agency was forced to divert some funding from other programs for fuel buys.

As of April 31, CUC had an average of about $7.6 million per month in receipts and expenditures for operating activities. For capital items and debt service, it has spent about $900,000 more than it has received from collections.

As a nonprofit agency, CUC relies heavily on the revenue it collects from ratepayers. At present, its biggest customers—the central government, public schools, and the hospital—owe it over $22 million, on top of unpaid obligations from residential and commercial users.