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Creation of water agency backed
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Posted on Jan 12 2005
Acting Commonwealth Utilities Corp. chair Herman P. Sablan is keen on having water and sewer services removed from CUC’s responsibility, saying the utility firm will not need a fuel surcharge if this plan is implemented.
Sablan said the proposed creation of a waterworks authority under the CNMI government will be one of the major issues to be discussed when CUC officials meet with Gov. Juan N. Babauta and Lt. Gov. Diego T. Benavente today.
“We will brief them on CUC’s intent to separate the sewer and water divisions from CUC. Hopefully, they’ll move fast in making this happen. I believe that the sooner we do this, the better for CUC and the consumers,” Sablan said.
He noted that one of the major reasons for CUC’s financial problems is the fact that revenues collected from power service are used to subsidize the operations of the water and sewer divisions.
“If the power division can stop subsidizing water and sewer, CUC will be in a much better financial position and the consumers will not have to pay for more than the amount of electricity they use,” Sablan said.
The CUC board of directors adopted on Dec. 14, 2004 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.
