CUC: Old engines causing power outages

There is no power crisis in the Commonwealth but power outages occur due to old machines, according to the Commonwealth Utilities Corp.

“We just have old engines and some of them are up for rehabilitation and overhaul,” said

CUC board chairman Herman P. Sablan in an interview yesterday.

House Committee on Public Utilities, Transportation, and Communications chair Timothy Villagomez had earlier asked CUC officials to shed light about “reports” that Commonwealth’s power system is on the verge of a “meltdown.” The lawmaker, who is a former CUC executive director, had said that the matter must be addressed immediately as it affects businesses and potential investors in the Northern Marianas.

“The committee is very anxious to discuss the problems that are plaguing the power generation system. The information that we have received described the situation as a serious crisis. Some have even suggested that the power system is on the verge of a meltdown,” said Villagomez.

Meantime, a government source said that some quarters would use the “serious” power situation to push for the privatization of CUC’s power plant.

“They are shaping the public’s consciousness to see the need for privatization. This is an issue that is being advanced in the high level of government,” said the source, who agreed to speak on condition of anonymity.

The source further said that an interested investor has been seen dining out with some government officials.

CUC is currently fine-tuning its Request for Proposal for the privatization of its main power plant in Lower Base.

The utility firm has hired a private consultant, Harris Group, to do the project’s scope of work.

The CUC board approved the proposed privatization of CUC’s power plants in July 2003.

At the same time, it voted for the issuance of an RFP for the privatization of Power Plant 2. The process was stalled, however, following findings that the CUC allegedly leaked information to a potential investor and that there was a lack of consultation prior to the issuance of the RFP.

The CUC’s RFP, which was later looked at by the Harris Group, aimed to solicit competitive proposals from independent power producers to modernize, upgrade, operate, and transfer Power Plant 1 and 2 and build CUC’s administration building on Saipan.

CUC later said that the construction of the building would be taken out.

The CUC earlier said the winning contractor would take over both plants and expand Power Plant 1. It is required to provide a state-of-the-art system control and data acquisition or SCADA for the existing machines at Power Plant 1 and the new installed unit.

Under the plan, the contractor would demolish Power Plant 2 after completing Power Plant 1 and hand over the land and equipment to CUC.

The CUC said that Power Plant 1’s privatization would be up to 15 years.

Power Plant 1 and 2 have a combined generated power of 29,706mwh that is being distributed to eight feeders in different locations on Saipan.

Power Plant 1 has four old engines, which were installed since it began operations in 1979, and four newer ones that were installed in 1989 and 1990.

CUC’s biggest assets are in power plants, which are valued at some $109.4 million.

Meantime, Villagomez said that the meeting with CUC officials would not only dwell on the power outages but also other issues such as “the lack of progress” on CUC’s Capital Improvement Projects.