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CUC emergency extended for 6th time
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Posted on Nov 16 2005
The state of emergency declaration for the Commonwealth Utilities Corp. has been extended for another 30 days.
Gov. Juan N. Babauta provided fewer reasons for the emergency in his sixth extension to the declaration, citing only “the uncertain financial condition of CUC and its ability to make all required fuel payments.”
Previous declarations were based on these two reasons, as well as CUC’s lack of “back-up” or reserve power generation capacity and the continued need to initiate critical maintenance and repair of power generation facilities.
CUC now has more than enough capacity to meet Saipan’s power demand. A significant portion of the repair needed at the island’s largest power plant has also been completed. On Nov. 1, the utility firm voluntarily shut down an engine at the Lower Base power plant for maintenance.
Nevertheless, Babauta said that: “This declaration of a state of emergency is made after finding that the recommendations and justifications that existed for the declaration of a state of emergency on [Oct.] 16, 2005 remain in existence and that emergency measures must remain in place in order to insure the safety of the people of the CNMI.”
“I find that the threat or danger to the CNMI caused by the uncertain financial condition of CUC and its ability to make all required fuel payments mandate the issuance of this state of disaster emergency declaration,” he added.
The Governor’s Office is set to update the public on the status of CUC this afternoon.
The latest extension to the declaration will be effective for 30 days.
During this period, the governor will have full control of CUC and the authority to suspend all regulatory statute provisions and regulations applicable to CUC, including procurement regulations.
The declaration also suspends the power, authority and or responsibility of the CUC board of directors. It authorizes the governor to reprogram all funds to address CUC’s problems.
The governor made the original state of emergency declaration during his State of the Commonwealth Address on May 19, 2005. The declaration has since been renewed six times.
