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New law OK’d for Aggreko deal
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Posted on Aug 01 2008
Gov. Benigno R. Fitial has approved legislation exempting emergency power contracts from review by the Public Utilities Commission.
The governor’s action cleared the last remaining legal obstacle to efforts by the Commonwealth Utilities Corp. to acquire emergency power from the U.K.-based Aggreko International.
All that is left to be done, according to CUC executive director Antonio S. Muna, is for the Marianas Public Land Trust to release the money for the initial contract payment for Aggreko.
CUC has hired the U.K.-based Aggreko International to provide up to 15 megawatts of temporary power to Saipan. The island is currently suffering constant blackouts due to the poor condition of its power plant.
Under the $6-million contract, CUC must make an initial payment of $1.5 million before Aggreko brings the rental generators into Saipan. Last week, the Legislature passed a law earmarking $3.4 million of future MPLT income to CUC. The earmark includes $1.5 million for the Aggreko deal. The MPLT board of trustees is expected to take up the matter in a meeting Monday morning.
“Right now, we’re just waiting for MPLT to make the decision to disburse the money. Until they make that decision, I can’t do anything,” said Muna.
CUC previously promised to pay the $1.5 million by July 31, 2008. Aggreko, in a letter to Muna, agreed to hold the rental generators up to that date. Muna was scheduled to meet with a visiting Aggreko representative last night to update the company about the situation and ask for more time to make the payment.
“At this point, it’s pretty much their call to keep holding the equipment for us. Those generators are very much in demand,” Muna said.
On Thursday, the Senate and House of Representatives held back-to-back session to approve the bill exempting emergency power contracts such as Aggreko’s from PUC review. The Senate voted unanimously to pass the measure. The bill was immediately sent to the House of Representatives, which voted 9-6 to approve it.
With Fitial’s signature, the bill is now Public Law 16-9.
