House may move for TRO vs privatization

House Vice Speaker Timothy P. Villagomez said there is a possibility of the Legislature asking the court to stop the administration and the Commonwealth Utilities Corp. from proceeding with power privatization amid the lack of an adequate study on the matter.

“There are options. One is having a restraining order. The Legislature can do it. Or anybody can file a complaint in court and ask for a TRO,” said Villagomez, who held a public hearing yesterday to receive Ramon Guerrero’s report on the privatization of Power Plant 1 and his work on the rehabilitation of Power Plant 2.

Villagomez said what concerns him is the bleak situation at the power plants and the alleged refusal of the Attorney General’s Office to purchase needed spare parts to fix the problem.

“One concern is that under the state of emergency, no funds have been allotted for the purchase of spare parts,” he said.

Villagomez said Guerrero, who ended his consultancy with CUC last week, “shed light on the real picture of power generation.”

Guerrero told the lawmakers yesterday that during his evaluation of the privatization program, he discovered that the Request for Proposal that was issued by the CUC for the privatization was prepared only by one person.

“I found out that it was done by one person who is not qualified to do it,” he answered in response to a question posed by Rep. Clyde Norita.

Guerrero further said that, when he asked the Harris Group about it, Harris allegedly told him that the RFP was prepared by “a person formerly connected with CUC Tinian.”

Sources said Guerrero was referring to former CUC Tinian deputy director Greg Castro, who was part of a “focus group” previously formed by the CUC board to formulate the RFP. An inside source confirmed that Castro handed out “an already drafted RFP” to the group.

“The question is who drafted the RFP? There’s a speculation that it’s from the industry,” the source said.
Saipan Tribune tried to get comments from Castro yesterday but he was not immediately available.

Castro now works for SSFM International and oversees the installation of smart meters on Saipan.

Meantime, Guerrero revealed during yesterday’s hearing which was conducted by Villagomez’ Committee on Public Utilities, Transportation and Communication, that Telesource, which he said is referred to as Company A, actually has a more expensive package than Company B, which is Rolls Royce.

Telesource currently operates the Tinian power plant, while Rolls Royce operates Power Plant 4 on Saipan.

“My finding showed that during the first three years, Rolls Royce is leading. It’s cheaper than Telesource by millions of dollars,” said Guerrero.

In looking at the Harris Group report, Guerrero also questioned why it appears that Telesource use $500,000 less fuel than Rolls Royce, even if “both use identical engines.”

“Should the data be revised and the score re-evaluated?” asked Guerrero.

Another source commented, “You ask him [Guerrero] what’s his relationship with Rolls Royce.”

Meantime, Guerrero said that his two-month-and-a-half consultancy work at CUC “was in vain.”

“Yes, congressman, it’s all in vain,” he said when asked by House minority leader Arnold I. Palacios, lamenting the administration’s refusal to grant his requests to buy spare parts.

He also said that he only utilized “used” spare parts to fix Power Plant 2. “It’s only temporary. It’s not permanent,” he said, suggesting that Power Plant 2 engines can go down anytime.

Guerrero has fixed three of the six engines at PP2.

He also said that going back to CUC now “is disgusting.”

“I have no intention of going back. What can you do there without spare parts?” he asked.