Fletcher offers snapshots of key CUC progress in 4 years

Despite the many challenges it faces, the islands’ utilities corporation has made a significant progress in the last four years, according to Commonwealth Utilities Corp. executive director Alan Fletcher.

Speaking to the new board of directors on Thursday, Fletcher presented key accomplishments among the three divisions of CUC—power, water, and wastewater—from fiscal years 2010 through 2013.

For the power division, Fletcher disclosed that from a power generation of just 25 megawatts in 2009, CUC has achieved over 60MW power generation capacity at present. It also improved engine efficiency from 12 kWh gallon fuel rating to over 15 kWh per gallon.

From the near collapsed situation of its power plants in 2008, Fletcher said that they managed to extend the life of Power Plant 1—the main source of electricity of its customers on Saipan—by another 10 years.

He also reported the in-house installation of new radiators, the upgraded Rota power plant that saves $50,000 per week in power purchases, as well as the completion of the “Renewable Integration Study,” which studied how CUC can integrate renewable energy into its grid.

According to Fletcher, CUC was also able to procure an Integrated Resource Plan for the CNMI to look at new energy sources, procure geothermal feasibility study, and meet operational goals despite delays in government collections.

Fletcher said the agency has also been effectively managing the projects mandated by federal stipulated orders in the last four years.

For the water division, he reported that the agency has achieved 95 percent of 24-hour water service while 98 percent are now covered by its metering project.

He also cited the continuing workforce development training and the certification of 30 employees. Since 2010, the agency also reduced the number of its boil-order notice to just one and met operational goals despite delayed collections, he said.

In the wastewater division, Fletcher reported that the agency reduced by 15 percent the electrical costs in wastewater treatment plants and rehabilitated two secondary wastewater treatment plants.

$67M federal monies

In other areas of operation, CUC was able to obtain $67 million in federal grants in which about $40 million worth of projects have been completed in the last four years.

Fetcher also cited the good mark on CUC’s audit reports, which have been obtaining unqualified opinions since fiscal year 2010.

“We also renegotiated merchant account fees, saving CUC about $300,000 each year and arranged grants to pay off the $1.9 million Agingan Wastewater outfall construction loan,” he said.

CUC also obtained a $1 million grant to replace 20-year-old customer information and billing system and was able to procure 950 state-of-the-art prepaid electric meters through federal grants.

Fletcher cited that in the early termination of the Pacific Marine Industrial Inc. contract for Power Plant 4 in 2012, CUC expects to save over $5 million. CUC also cited the success of its call center service, which has been in place since last year.