Legislative leaders ask Fitial to clarify emergency declaration

Senate President Pete P. Reyes and House Speaker Arnold I. Palacios have asked Gov. Benigno R. Fitial to clarify his recent declaration of a state of disaster emergency for the CNMI.

Reyes and Palacios specifically requested for clarification on the nature of the emergency declaration and the justification for, intent and extent of application of the declaration’s Directive No. 2.

Directive No. 2 states that “the Commonwealth Public Utility Commission Act of 2006, Public Law 15-35, as amended, is hereby suspended insofar as it would require the presentation of CUC procurement information, including contracts and other measures relating to the supply of power or the operation and maintenance of CUC’s generation, for PUC review.”

In their letter to the governor last week, the Senate and House leaders pointed out that, as they see it, the purpose of Fitial’s emergency declaration—Executive Order 2008-10—is to effectuate Public Law 16-9.

That law authorizes Fitial to issue a retrospective declaration of emergency for any contract in existence on the effective date of such law, provided that the contract is for a term of two years or less and is for emergency wholesale power generation.

Citing Directive 2, Reyes and Palacios expressed concern that the executive order “ appears to do more than that.”

The two officials noted that while P.L. 16-9 amends P.L. 15-35 (PUC Act) to preclude PUC review of any contract for emergency wholesale power generation, a plain reading of Directive 2 “appears to suspend all statutory provisions requiring PUC review that relate to power generation, including emergency wholesale power generation.”

Reyes and Palacios said there has been no request or indication from either the CUC or the administration that the emergency so far presented warrants a wholesale suspension of these specific provisions of P.L. 15-35.

Fitial declared the state of disaster emergency for the CNMI on Aug. 1, citing that one of the power engines at the Commonwealth Utilities Corp.’s Power Plant 1 in Lower Base could explode at any time, maiming or killing power plant workers.

The declaration caught some lawmakers by surprise, including Sen. Paul Manglona, who chairs the Committee on Public Utilities, Transportation and Commission. Manglona said the executive order was signed on Aug. 1, but he only became aware of it on Aug. 14.

Manglona had questioned whether there are other contracts being signed using this declaration of emergency.

Palacios had also expressed concern with the legal implications of the declaration. He immediately instructed the House legal counsel to review and analyze the executive order.

In response to the concerns, the Fitial administration has assured that CUC under the new leadership of executive director Tony Muña is not going to allow improper contracts to be executed.

In their request for clarification, Reyes and Palacios told Fitial that the Legislature stands ready to lend whatever assistance legally permissible under the Constitution that the current power crisis demands in the best interest of the health and welfare of residents and businesses, especially on Saipan where the crisis is most critical.

“The enactment of P.L. 16-9 permitting CUC to contract for emergency wholesale power generation without review and approval of the Public Utilities Corp., is the latest example,” they said.