Teno’s decision on 80-MW project out soon

The fate of the controversial Saipan power project will soon be known as Gov. Pedro P. Tenorio pledged yesterday to act immediately on legislation restoring the mothballed 80-megawatt proposed plant.

The chief executive said his legal counsel has reviewed Senate Bill 12-19 and that he expects to decide whether to sign or veto it by today or early next week.

The measure, offered by Senate Floor Leader Pete P. Reyes, will force the Commonwealth Utilities Corporation to reinstate the original proposal and scrap a plan to re-bid a new power plant with a 60-MW capacity.

It cleared both houses of the Legislature and is now awaiting action by the governor who has until second week of April to consider the bill before it automatically becomes a law.

Lawmakers had passed the legislation amid their dissatisfaction over the decision of the CUC board to abandon the initial request for proposal and start all over again for the bidding of less costly plant.

While the government-owned utility corporation initially opposed the legislative proposal which they considered amounted to political interference into an autonomous agency, the new officers running the board have expressed support for the construction of the 80-MW plant.

CUC Executive Director Timothy P. Villagomez said they will abide with the intent of the bill, noting that their concerns had been addressed during their meetings with members of the Legislature.

“I’m sure that [the governor’s office] is reviewing it closely [to] give us a direction as to how to proceed with this. I don’t see any problem,” he said in an interview.

Asked if CUC still opposed the measure, the utility chief maintained it is up to the Tenorio administration how it wants the corporation to handle the project.

“I’m sure the Attorney General’s Office has seen the intent of the bill and the AGO’s interpretation may be different. We will wait for that legal counsel’s comment to be turned over to us,” added Mr. Villagomez.

SB 12-19, citing irregularities in the decision last January to scrap the initial plan, will declare as public policy the need for a project with such magnitude and nullify the board’s move. The board, however, will be absolved from potential liability arising from such decision.

Since its passage, CUC has softened its stance, although it cost the post of former Chairperson Rosario M. Elameto, who was abruptly replaced by Jesus T. Guerrero as head of the policy-making body in a surprise election last March 15.

However, two bidders — the SPP/HEI and the Tomen Consortium — had asked the governor to veto the measure, saying that it would mean immediate awarding of the $120 million contract to front-runner Enron due to a provision restricting engines for the plant to low-speed and diesel-powered generators.