Guerrero defends CUC vs Lang’s criticisms

Commonwealth Utilities Corp. Board Chair Jesus T. Guerrero has defended the agency from criticisms leveled by former Gov. Froilan C. Tenorio who has slammed their recent decisions for allegedly violating its policies and regulations.

In a letter to the ex-chief executive responding to accusations, he sought to justify the board’s actions, saying that they were done in accordance with the law.

Mr. Tenorio earlier has written to the CUC chair asking him to suspend board’s activities as he expressed alarm at the alleged ignorance by some of the members on their responsibilities and duties to the government corporation.

His comments stemmed from the board’s decisions not to disconnect utility services to government offices despite its outstanding balance of over $12 million representing unpaid bills for the past several months.

He also castigated CUC for rejecting an appeal by the Tinian Dynasty Hotel and Casino for a discounted power rate, noting that the power plant in the island municipality is not being used to the fullest since its biggest potential customer is being denied such assistance.

But Mr. Guerrero maintained these decisions were made in consideration of existing regulations and policies, adding the board is still exploring other ways to address the situations.

“It may interest you to learn that we continue to explore other options that would consider [Dynasty’s] current circumstances without the need for violation of applicable rules,” he wrote in the letter.

“The government debt… is admittedly large and we are working with the administration to secure payment without the need to disrupt public services unnecessarily,” added Mr. Guerrero.

His letter, dated May 12, was his official reaction to Mr. Tenorio’s letter that he sent to the CUC chair last May 4, although he claimed he had yet to receive it as of May 9. His reactions were based on media reports.

While acknowledging “few good points” that the former governor raised in his complaint, Mr. Guerrero pointed out that he is “far afield when it comes to other” issues. He cited for instance the policy by CUC to offer discounted power rates to non-profit organization, like the Voice of America whose relay station on Tinian pay only 11 cents per kilowatt-hour.

CUC regulations provide exemptions, just like in other U.S. jurisdictions, he said. “It is a pity that you were not able to correct many of these perceived deficiencies during your tenure as governor,” added Mr. Guerrero.

He admitted, however, that many of the issues are likely to invite lawsuits — as suggested by Mr. Tenorio when he spoke during a CUC board meeting last month — which could be very costly.

“To avoid the inordinate cost of a lawsuit, I welcome instead any constructive suggestions you might have for reducing the amount of government debt to the utility or how the Tinian Dynasty’s request might be accommodated while assuring ourselves that their financial obligations will be paid without resorting to the court system,” said Mr. Guerrero.

CUC chief information officer Pamela Mathis has previously responded to the former governor’s allegations as she blamed his administration for the failure by Gov. Pedro P. Tenorio to settle its huge debt.