‘Parts needed by CUC available on eBay’

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Posted on May 30 2004
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Major businesses in the Commonwealth have sounded the alarm on the Commonwealth Utilities Corp.’s inability to provide sufficient power supply due to non-performing power plants in Lower Base.

Legislators also disclosed that power outages are likely to happen all the more now that CUC officials revealed that parts needed for the repair of two Power Plant 2 engines in Lower Base have yet to arrive.

During Friday’s hearing at the House chamber CUC officials said the parts for the power engines are still being manufactured and there is no definite date yet as to when it would arrive on island.

But immediate inquiry made by the Legislature disclosed that the parts—which CUC claimed are designed to be manufactured upon order—are sold over the Internet on eBay at $200,000 apiece.

“CUC officials said that manufacturers would make the parts when they place the order and it is still being manufactured. But legislative staffers checked the Internet and found the exact item on eBay. The item is sold at $200,000. They should check eBay” said a House official Friday.

The oversight hearing was called by the House Committee on Public Utilities, Transportation, and Communication, which is chaired by Rep. Timothy Villagomez, a former CUC executive director.

Also, PUTC officials and members were surprised that the two power plants at Lower Base are up to be decommissioned within the year and are up for privatization.

“Are you saying that the CUC board has already approved to go ahead with the privatization of the power plants?” asked Rep. Arnold Palacios repeatedly during the hearing.

Majority of the CUC board voted to pursue the privatization since summer 2003. CUC board chairman Herman P. Sablan said that CUC is tapping the expertise of Harris Group consultancy on the project.

He said the consultant has completed the scope of work for the project’s Request for Proposal. At this time, Harris Group is looking at the project’s pre-qualification bid.

According to CUC, there is no power crisis but of its four power plants—two in Lower Base, one in Isley Field, which is not operational; and the Puerto Rico power plant, which is being petitioned by local residents to be relocated due to noise and alleged environmental pollution—only two are working. The power plants 1 and 2 are up for privatization.

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