CUC

A new power source for the island of Tinian began operations yesterday after town officials and the Commonwealth Utilities Corporation opened a 10-megawatt plant barely nine months since the start of its construction.
Built by Telesource, the plant will supply electricity to Tinian Dynasty Hotel and Casino and the Voice of America relay station — two development projects anticipated to spur economic growth on the island.

CUC officials, led by Board Chair Juan S. Dela Cruz and Executive Director Timothy P. Villagomez, as well members of the Tinian Legislative delegation, including Senators Joaquin Adriano and David Cing, and executives from the Kuwait-based contractor inaugurated the new power plant.

Dela Cruz said the Tinian plant is the most advanced generating facility in the CNMI, noting that the island has become the first municipality to have achieved a reliable power system.

“(T)his new power plant is a vital step in the continued economic success and growth of the island,” he said in his speech at the brief ceremony.

Expressing relief over the immediate construction of the plant, Villagomez said CUC is generating economic development and stability; a smarter and more efficient government and that they are taking care of the generations that will require steady power supply.

The ceremony marked the operation of the first of the four engines of the plant, which has generating capacity of 2.5 megawatts. The others, with combined capacity of 7.5 megawatts, will go on line within the next two months, according to CUC information officer Pamela Mathis.

The VOA facility will have an initial demand of 3.5 megawatts, but will reach up to 10 megawatts in the next few years, the single biggest customer in the CNMI, CUC said.

To meet the increasing demand, the Tinian power plant, which is operated by Telesource, will be expanded into a 30-megawatt facility under the second phase of the project that initially cost about $12 million.

According to the agreement with Telesource, the firm will charge CUC approximately seven cents per kilowatt-hour of electricity, which the government-owned utility will sell to Tinian residents and commercial companies.
Telesource, which edged out five other companies bidding for the project in 1997, will operate the new plant. Six CUC positions were eliminated to give way to the independent power producer, while four personnel are being retained to handle the 1.5 megawatt existing generator as well as the clean-up of the plant.

Meanwhile, four engines in the old system will be made available for Saipan and Rota should their existing facility cannot meet the power demand on these municipalities, according to Mathis.