Commonwealth Utilities Corp. executive director Kevin Watson said designated federal Judge David O. Carter was pleased with CUC’s recovery work following two super typhoons, but believes the utility needs to pursue additional funding to rebuild and strengthen its battered infrastructure.
In a Zoom interview with Marianas Press Thursday evening following a Sept. 10 status conference at the U.S. District Court for the Northern Mariana Islands, Watson said Carter got a firsthand look at CUC’s progress and continuing challenges during his visit to the CNMI.
“He's happy with the work that CUC staff has been doing and our restoration efforts. He does think that we need to ask for more funding, which we are doing,” Watson said.
The status conference is part of the long-running federal cases involving CUC and the U.S. Environmental Protection Agency overseen by Carter.
According to court minutes, CUC officials presented updates on the impacts of the typhoons, infrastructure damage, restoration efforts, its emergency response plan, and the utility’s financial condition. Carter also asked about power restoration on Tinian and Rota, concrete poles, transformers, and other utility issues.
Watson said one of the most serious issues presented to Carter was the condition of Tinian’s power plant.
“The infrastructure damage to the Tinian power plant, for instance, was catastrophic to the point that the recommendation is that the structure and the gensets be replaced,” he said.
CUC has entered into a four-year lease for Aggreko generators as a temporary solution while it seeks federal funding to rebuild the Tinian facility, Watson said.
Watson stressed that Thursday’s proceeding was not intended primarily as a compliance check on CUC’s stipulated orders.
“He was here to offer support and his influence that he may have on, you know, federal grant funding agencies and how he can help us,” Watson said of Carter. “He was here to see, you know, to help CNMI and the citizens of CNMI.”
The utility also reported that about 84% of Saipan’s load has been energized, while Tinian was at about 95% and Rota at 45%.
Watson said the pace of restoration remains tied to CUC’s financial situation, with restoration costs already running into the tens of millions of dollars.
CUC is seeking legislative authorization for a $40-million line of credit that Watson said would allow the utility to pay contractors and purchase materials while awaiting reimbursements from the Federal Emergency Management Agency.
“No one is fronting the funds to restore all the devastation from two super typhoons. It has to be come from CUC. And CUC has basically run out of funds,” Watson said.
Watson emphasized that CUC is seeking authority to obtain a line of credit from a financial institution, rather than asking the Legislature to directly provide $40 million.
The utility is also looking to replace wooden distribution poles with concrete ones as part of efforts to harden the system. Watson said more than 700 wooden poles were destroyed, while only a handful of concrete poles suffered comparable damage.
Carter’s work with CUC will continue Friday. According to the court minutes, Carter and CUC officials are scheduled to meet at Power Plant 4 at 8am.
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