Enron power plant bid endorsed

One of the top bidders on the much delayed Saipan power project has won endorsement from the governor of Guam who has credited Enron for helping the island resolve crippling power outages in the past few years.

Guam Gov. Carl T. Gutierrez wrote a letter to Gov. Pedro P. Tenorio last November to push Enron’s bid to build the new 80-megawatt power plant on Saipan, citing the experiences the neighboring island has had with the Houston-based industrial giant.

Enron is the largest of the three independent power producers on Guam that supply electricity to island residents . It has been a partner also in community events through sponsorships and assistance it provides to GovGuam and other local institutions.

According to Mr. Gutierrez, the power firm completed the new plant in Piti three months ahead of schedule which is now generating the lowest cost per kilowatt hour of all the plants on Guam and has been a factor in cutting its annual loss of load incidence from 23 days to just a day per year.

“I am proud of Enron’s contributions and involvement in our efforts to improve the quality of life for the people of Guam,” he said in the letter to Mr. Tenorio.

“I urge you to favorably consider any opportunity your government may have to partner with Enron… I can assure you that based on our experiences, you will find them to be welcome addition to your community and its future,” added Mr. Gutierrez.

Enron has topped the final round of independent evaluation conducted by Burns & McDonnell on the Saipan power project, ahead of the Tomen Consortium, HEI/SPP and Marubeni-Sithe.

The Commonwealth Utilities Corporation board is scheduled to meet tomorrow to decide the fate of the $120 million project, which has been derailed in the past one and a half year amid mounting protests over its choice of Japan’s Marubeni and its U.S. partner.

Enron has actively lobbied the Legislature against delay in awarding the contract and a plan to downsize the project, saying the island will need a reliable power if it wants to attract investors and improve the local economy.

Touted to be the largest deal ever in CNMI’s history, the project is designed to be built by an independent power producer under a 25-year agreement.