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Monday, April 21, 2014

Georgetown opposes funding for Telesource contract

Georgetown Consulting Services, the independent consultant of the Commonwealth Public Utilities Commission, is opposed to the idea of providing funding for the contract of Telesource CNMI, Inc., the independent power producer for Tinian.

The consultant made this clear in a joint stipulation filed before the CPUC on Friday. In the revised electric rate application submitted to the commission, Georgetown said that change order No. 5 for the Telesource contract is the only disagreement between the parties in the stipulation.

Saipan Tribune learned that the Telesource contract requires Telesource to convey title to the Tinian plant and assets to CUC. Telesource has failed to perform this contractual duty. Georgetown believes this to be a significant failing and recommends that title be transferred immediately, according to the revised stipulation.

Telesource CNMI Inc. is the independent power producer on Tinian. It wants to be paid a higher rate. This amendment to its contract—called change order No. 5—was approved on Nov. 29, 2011, but was put on hold in January 2012. Change order No. 5 provides extensions of up to 15 years on the Telesource contract, with incremental increases each year that will be sourced from electric base charges.

CUC had earlier asked that $1.412 million for fiscal year 2014 be recognized to fund the obligations that it would incur under change order No. 5 of the contract.

A decision on the rate application filed before CPUC, which include the Telesource change order No. 5, among other components, will be decided within the month or in early January.

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