CUC to resume talks with Enron this month

Citing the possibility of an engine breakdown, the Commonwealth Utilities Corporation disclosed plans yesterday to proceed negotiations with Enron this month.

According to CUC Executive Director Timothy P. Villagomez, utility officials discussed potential problems like breakdown and maintenance cost with newly-hired legal counsel who started drafting choice documents to protect public assets and consumers.

Once the contract with Houston-based Enron pushes through, Mr. Villagomez is optimistic it will be a major economic boost to the Northern Marianas and for businesses using full-time power supplies.

Vice chair Laura Manglona, who also heads the contract team, said talks are ongoing although there is no definite date yet as to when negotiations will be completed.

Ms. Manglona said once the contract is signed, permitting processes and actual construction will begin by 2002 to 2003.

“We hope negotiations proceed without problems, and we don’t foresee any,” said the vice chair adding negotiations should push through unhampered and the power plant be built before older engines fail.

Prices, negotiating terms and cost ratios are not released pending procurement procedures, Ms. Manglona explained.

Apart from the Enron talks, the CUC board met this week to discuss budgetary problems and the persisting operating losses caused by spiraling fuel costs and increasing government utility debts.

The board contended that operating income should be generated to take care existing fleet of engines and maintenance of power plants.

Presently, the utility agency has five power plants supplying electricity to Saipan, Tinian and Rota.

The board believes that the Enron power plant project is Saipan’s single most significant construction project that will boost the CNMI economy and a reliable source of energy at affordable prices.

Utility officials underscored the need to proceed with the project immediately to prevent possible energy problems in the future similar to problems experiencing by California energy companies.