Babauta’s SOCA to address CUC woes

One of the highlights of the Governor’s State of the Commonwealth Address today would be on how to go with the many problems plaguing the Commonwealth Utilities Corp.—from power outages to fuel supply woes and funding concerns.

“I think the issue is how best we address CUC,” said press secretary Peter A. Callaghan yesterday.

He said a final draft of the governor’s speech was “almost done” by 6:30pm Tuesday.

The speech was finalized during a meeting among Gov. Juan N. Babauta, Lt. Gov. Diego T. Benavente, governor’s consultant Adam Turner, senior policy advisor Bob Schwalbach, Callaghan, special assistant Galvin Guerrero, and legal counsel Steve Newman.

The governor would deliver the speech in 26 minutes, Callaghan said.

The opposition, headed by House Speaker Benigno R. Fitial, said it is only appropriate that the governor should tackle CUC problems, including the recent implementation of a 3.5-cent surcharge fee.

The CUC’s 3.5 surcharge fee is now reflected in consumers’ May billing.

“The 3.5 cents has just been released and people are shocked, outraged, very frustrated,” said House leadership spokesman Charles Reyes Jr. “It’s one of the pressing issues that the administration should report on.”

Power outages took place on Tuesday in various Saipan villages after the Puerto Rico power plant ran out of fuel, just as U.S.-based investors arrived for a two-day business mission on the island. This was the second time in less than two weeks that the power plant ran out of fuel.

The Legislature earlier said that the governor should also discuss the current downsizing in the garment industry, inflation, and tourism prospects.

Senate President Joaquin G. Adriano said the public wants to hear “about the next step in the economy.”

“What’s the contingency plan to replace what’s going out in terms of garment downsizing? Let’s talk about the tourism industry in terms of our marketing. How are we doing in international market?” asked Adriano.

By addressing these issues, he said, the Legislature would know how to go about addressing the fiscal year 2006 budget.

The Babauta administration has submitted a $225.8 million proposed budget for FY 2006.

The government currently operates on a $213-million continuing resolution.

Today’s SOCA is scheduled at 10am at the Pedro P. Tenorio Multi Purpose Hall in Susupe.