Relocation of power plant ‘problematic’

The proposed relocation of Puerto Rico power plant cannot be done easily as it would violate an existing contract that reportedly guarantees continued operations of the plant up to 2016.

When asked on the progress of the proposed relocation during a legislative hearing Friday, Commonwealth Utilities Corp. board vice chairman Frank Q. Guerrero said the power plant “has to be there.”

The Legislature recently adopted a joint resolution supporting the immediate relocation of the plant following complaints from local residents of noise pollution and other environmental and health concerns.

During the hearing Friday, House Committee On Public Utilities, Transportation, And Communications chair Rep. Timothy Villagomez called on the CUC to get the opinion of its consultant, Harris Group, on the issue of relocation.

Meantime, CUC legal counsel Brien Sers Nicholas said “there’s no such situation as 2016.”

Without giving details during the public hearing, Sers Nicholas indicated that the plant’s contract expires in 2006. He said it could only be extended for another 10 years “if they comply with certain conditions.”

At the same time, he said the plant operator should also let the CUC know of its planned extension.

The lawyer indicated that he would be willing to share important legal issues involving the Puerto Rico plant in a closed-door meeting.

For his part, CUC board chair Herman P. Sablan said that he supports either the relocation or its continued stay on condition that it would meet all regulatory standards.

“They are looking at meeting all EPA standards without having to relocate. I think the primary goal at this time is to fix it and meet EPA requirements,” he said.

Last February, Gov. Juan N. Babauta asked the CUC to conduct a feasibility study on the relocation of Puerto Rico Power Plant IV amid complaints of noise pollution, environmental degradation, and other health risks, among others, from affected residents.

This, he said, has resulted in decreased property value, unsatisfactory noise levels, increased environmental damage to the surrounding area and possible increase in health risks to the community.

He warned that these negative impacts, which have persisted for many years, could result in litigation.

Village residents near the site claimed that the plant “spews out black, acrid smoke, diesel fumes and soot 24 hours a day, seven days a week.”

The power plant, is run by Powerhouse Diesel, which normally provides CUC with 10 MW. The plant was privatized in the early 1990s and consists of five generators.

Last year, the CUC said the plant suffered “extensive difficulties with its production program,” resulting in power outages that affected the northern part of Saipan: Tanapag, Marpi, As Matuis, Capitol Hill, Papago, and Kagman.

CUC had said that the plant’s generation plant was not running at full capacity, and said that “our coop-privatization partners are still running quite below contract specifications.”