On power generation project

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Posted on Apr 11 2001
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The Issue: The net effect of the decision by Enron to scrap the 60-megawatt project.

Our View: Another year of delay in the timely construction of a much needed facility.

Although Enron has decided to scrap the 60-megawatt power project it was awarded recently, not all hope is lost in the timely re-issuance of another bid for all interested proposers.

After the Commonwealth Utilities Corporation secures a final answer from Enron, it should immediately issue another bid notice to expedite review of all proposals. It should do so over the next 30 days.

If in fact there’s credence to statements made this week that CUC’s current capabilities is limited to 70 percent of the total power requirements, then it is more the reason to expedite issuance of a new bid to solicit plans from interested bidders.

We hope too that in the process, CUC doesn’t dilly-dally with the size of the project that originally was bidded at 80-megawatt subsequently downsized to 60-megawatt. This shift in the rules right in midstream reflects nothing more than instability in the way we deal with issues.

It breeds suspicion on the credibility of the local government to weather its own policy.

CUC ought to seriously review the short and long-term plans of bidders, i.e., how much would each be charging per kilowatt hour versus current rates before turning over the facility to CUC at the end of the term.

This is an important aspect in terms of our apparent weak-kneed commitment to keep the cost of doing here down to reasonable levels. The project requires fast-tracking given the fact that more residential development have come up in recent years. The demand for more power is there. The supply lags behind such demands. CUC must roll-up its shirtsleeves and get on the ball immediately. Si Yuus Maase`!

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