Future dim for 60MW power plant project?

The Commonwealth Utilities Corporation remains off-track on how to resolve the crisis brought about by Enron’s decision to pullout of the 60-megawatt Saipan power plant project.

This week, CUC officials including the project negotiating team are scheduled to convene to discuss the remaining alternatives in light of the proposals made by local government heads to proceed with the multi-million project.

But CUC Board Chair Jesus T. Guerrero remains adamant that the problem will not be addressed unless amendments on the Energy Sufficiency Assurance Act of 2000 are made. (See related story on page 5)

“What can we do, our hands are tied. The public law was made solely for the negotiations with Enron,” the board chair told reporters in an interview yesterday.

Mr. Guerrero said there are no other way to proceed with the project unless changes are made to Public Law 12-1 to accommodate remaining bidders.

Without the needed amendments, the CUC’s abandoned power plant project will have to be bided out again to interesting companies like the Tomen Consortium, Saipan Power Partners, and Telesource CNMI, Inc.

Mr. Guerrero, however, disclosed that Enron is still sending out fillers to CUC’s legal counsel, John Mauel, Esq., of Fullbright and Jaworski. The lawyer disclosed another issue raised by Enron but Mr. Guerrero said the case remains confidential up to now.

This will be discussed also on the scheduled meeting and if the need arises, CUC will be forced to call an emergency meeting to thresh out the problem immediately.

The Houston-based power company backed out from the negotiating table after almost a year of transaction with the CUC officials headed by vice chair Laura Manglona.

Because of the unforeseen delay due to the breakdown of the CUC-Enron talks, utility officials said they are eyeing the filing of a lawsuit against the power company.

Earlier, Tomen Consortium legal counsel Robert O’ Connor appraised that within the next 30 days, CUC should be able to wrap up a contract agreement with the consortium in accordance with PL 12-1.

Under the existing procurement regulations, CUC is obligated to forge a contract with the next lowest proposal on the RFP requirements, based on the corporation’s procurement policy. (EGA)