Enron slams CUC decision

The top bidder on the controversial Saipan power project expressed disappointment over the decision by the Commonwealth Utilities Corporation to scrap the initial 80-MW power plant as it questioned the result of independent study conducted on the island’s power needs.

“We don’t think it was the right decision for the people of Saipan. The board has no plan at this point… so it’s a matter of time,” said Enron Vice President David B. Howe. “Our next option is we have to wait and see what CUC is planning to do.”

In an interview after the announcement of the board decision yesterday, he said that Enron will keep its option open on what to do next when CUC has come up with its new plan.

But Mr. Howe contested the findings made by independent experts hired by CUC recommending several options that included downsizing the project to a 60-MW plant.

“Its economic analysis is dependent upon on what information CUC has provided. Our contention is that since we’ve done a load study, that there is ample information that what is needed today is at least 80-MW plant,” he said.

Mr. Howe also disclosed that Enron does not plan to take any legal step at this time against the government corporation. The Houston-base industrial giant has pending case with the Office of Public Auditor over its complaints on the earlier CUC decision to award the project to its closest competitor, Marubeni-Sithe.

According to Executive Director Timothy P. Villagomez, a new round of bidding on smaller project with 60 MW capacity will be undertaken within the next few months.

He added that all companies that submitted proposals for the initial plan will be given opportunity to bid again for the new project, along with other potential bidders.

“All vendors will be given an equal opportunity to bid,” said Mr. Villagomez in a statement. “All the companies who bid will be eligible but others may bid too. This will give us the best price.”

Board Operations Committee Chairman Frank T. Flores laid out the plan for the new procurement process. “As… requested, CUC is already planning that the new project will be awarded by having all qualified companies submit bids. This will eliminate a lot of criticism and will ensure our customers of the lowest possible rates,” he said. (BS)