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CUC makes second $500K payment to Aggreko
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Posted on Nov 19 2008
Although more than a month late, the Commonwealth Utilities Corp. has given Aggreko International their second payment for the emergency generators.
The payment was due Oct. 12, but the utility company needed to work with Aggreko on some reporting issues before the payment was made, said CUC executive director Antonio Muña yesterday.
“Like any contract, there are promises made on both sides of the equation,” he said. “We have certain terms of agreements and conditions. We are addressing that. There are just some reporting issues and understanding,” he said, adding that CUC has no complaints with Aggreko and that the generators have been very reliable.
Aggreko received an initial $1.5 million from CUC in August, which paid for the generators’ first month of operation, lasting Sept. 12 to Oct. 11, and the last two months of the 12-month contract.
Every 28 days CUC must pay Aggreko an advanced payment of $504,000 for 15 megawatts of power.
“It’s an advanced payment, so basically when you make an advanced payment you have to have some report that says they produced this much and they delivered this much and we put that on the grid,” Muña said. “It’s those kind of issues we need to get a few reports as to how much they consumed on a daily basis.”
For the first few weeks after Sept. 12, when the majority of the generators were turned on, only 13 megawatts of power was produced. Two additional megawatts were later added to the line when those generators arrived on island.
“This is a 12-month contract, we are in need of their services, and they’ve been very reliable,” he said. “Considering all of that, we are working with them to get the reports we need to ensure that we can liquidate the advanced payments.”
Muña said the money for the payment came from revenue. The utility company will make the next payment, initially due last week, by the end of the month.
