Ayuyu appeals to hotels: Be part of the solution

Joe Ayuyu, owner and president of McDonald’s Saipan, appealed yesterday to the CNMI’s hotel industry to reconsider their position on the proposed standby charge and hook up to the Commonwealth Utilities Corp.’s power grid.
“It’s time to make some sacrifices. These hotels have been here for many years and are part of the community. So I urge our tourism industry now: be part of the solution for our community,” Ayuyu said yesterday

On the Commonwealth Public Utilities Commission’s table is CUC’s proposed $20 kW per month standby charge for large commercial customers that rely on their own generators for their daily operation and only use CUC power when their engines are non-operational or undergoing maintenance.

CUC earlier said that if its proposed “standby charge’ is disapproved, this will result in CUC seeking a further rate increase to cover the shortfall.

The Hotel Association of Northern Mariana Islands and the Saipan Facilities Management Association strongly oppose the charge, saying it is not reasonable, is unaffordable, and untimely as the tourism industry is still recovering.

According to Ayuyu, however, the tourism industry—particularly hotels—have long been enjoying “some sweet deals” from the government. He cited the government’s qualifying certificate program that grants tax breaks to businesses like hotels and favorable terms on their land lease agreements. He described the lease terms of these businesses as much cheaper than what is imposed in other jurisdictions like Guam.

“I fully support the tourism industry. But we, as businesses, must also provide some fairness to the community. Yes, we’re aiming for profits…but our concern should be more than that,” said Ayuyu.

Like any other businesses, Ayuyu said his company has been paying a lot for utilities. He shared that his company has been running its own generators for many years to ensure uninterrupted power supply for its operation.

“At first, I was hesitant. It was really a hard decision. But I know I have to do it [hook up to CUC] because in the long run, this island will be relying on our CUC. So I did my part, I sacrificed because I know it will bring something good for the community,” he said, pointing out CUC’s need to stabilize its resources so it could continue operate and progress.

He acknowledged witnessing the grave impact of constant power outages but believes that CUC has made significant strides that must be acknowledged by the community. Evident, he said, is the minimal outages and the much improved, more reliable service.

Since he started paying a higher rate for power as a result of hooking up to the CUC grid, Ayuyu said he has learned to become a better businessman—creative, resourceful, and responsible—describing it as a “blessing in disguise.”

Ayuyu said that without any help from businesses, CUC’s the long-term plans for the CNMI will not be achieved.

Ayuyu said it’s about time that the tourism industry step up to the plate and do its share for the “people of the CNMI.”

Under CUC’s proposal, large customers who want to avoid paying the standby charge will have to physically disconnect from the CUC grid.