The House of Representatives on Saturday unanimously approved a $40 million emergency line of credit for the Commonwealth Utilities Corporation, two days after CUC defended the borrowing plan as essential to restoring and stabilizing the power system following Super Typhoons Sinlaku and Bavi.
During Thursday’s board meeting, Chairman Allen Perez said CUC has no practical way to fund recovery without borrowing, noting that FEMA reimbursements can only be claimed after the utility spends the money upfront.
“Once we spend the money, we file for reimbursements with FEMA, we get the money, and then we pay back the loan,” Perez said. “Right now, the priority is keeping these lights on.”
Perez said CUC has already asked FEMA for advance payments and direct contracting authority, but neither request has been approved. He added that the corporation has exhausted efforts to renegotiate vendor terms and reallocate grant funds.
Board member Rebecca White said CUC is operating within statutory limits and pursuing every available option to stabilize the system.
“We’re finding solutions,” she said. “It’s not a popular solution, but it’s a solution.”
On Saturday, lawmakers moved quickly. The House passed HB 24‑107, authorizing CUC to obtain the emergency credit line for utility restoration, grid stabilization, and fuel procurement. The bill now heads to the Senate.
