Teno turns down changes to power sufficiency law

Governor Pedro P. Tenorio yesterday advised the Commonwealth Utilities Corporation to comply with the provisions of the Energy Sufficiency Act of 2000 by passing on the contract for Saipan’s 60-megawatt power plant to the next lowest and responsible bidder.

Mr. Tenorio apparently balks initial plans made by some CUC officials to solicit new sets of bids for the multi-million-dollar project, which has been in the offing for several years now.

The governor pointed out that Public Law 12-1 contains blanker provisions that encompass the entire project, including total cost, procurement and awarding of the contract which was not limited to Enron.

PL 12-1 calls for the immediate construction of the most efficient infrastructure base, particularly source of power supply, to support the economic development of the Northern Marianas.

The law states that it is a public policy of the Commonwealth that construction of an 80-megawatt power plant under the Build-Operate-Transfer concept, beginning with the immediate installation of a 60-megawatt power grid, is in the best interest of the CNMI and its people.

Legislators earlier ordered CUC to award the multi-million-dollar power project to the next lowest bidder to jump-start the project and thwart possible legal consequences. CUC officials were also told to begin talks with Tomen Consortium as required under the terms of PL 12-1.

Any delay is seen to result in another possible lawsuit, which in the end will be against the best interest of the utility corporation and Commonwealth consumers. In the next 30-days, CUC should be able to wrap up negotiations with Tomen Consortium and forge a contract as stated in the existing procurement regulations.

Sen. Ramon S. Guerrero advised CUC Board Chair Jesus T. Guerrero to negotiate the project with the next lowest proposal on the RFP requirements, based on the CUC procurement policy.

Enron’s decision to pullout of the power plant project is also expected to hurt overall efforts by the CNMI government to lure more investors in the Northern Marianas due to a looming power shortage caused by the virtually shelved 60 megawatt power plant project on Saipan.

Due to the possible delay in the construction of the power grid, foreign and local investors wishing to put up businesses here are faced with higher costs since they will have to put up their own power source.

Rep. Rosiky Camacho, chairman of the House Committee on Public Utilities, Transportation and Communication, said only about 70 percent of the island’s power needs are being supplied by the Commonwealth Utilities Corporation. The remaining 30 percent which are mostly businesses supply their own power needs.

Existing power plants maintained by CUC on Saipan could break down if additional customers hook up, thus, the need for new and a more powerful source of electricity.

Officials also said the Northern Marianas faces a grim energy supply situation if construction of the 60-MW power plant is delayed for yet another year, which is more likely the case due to Enron’s decision not to push through with the project.

CUC officials previously confirmed that the delay in the construction of the 60-MW power plant project could cause serious consequences on the island’s power supply needs, since current facilities do not have the generation capacity to handle additional, and even present loads.

CUC has been working on the power plant project over the past four years. The new power grid was originally envisioned to meet the island’s projected power supply needs by 2000. (ARF)