‘Power reserve won’t be in place ’til next year’

Gov. Juan N. Babauta said that the power situation in the CNMI has stabilized but having a power reserve may happen next year or within 10 months.

“The situation has stabilized but as long as we don’t have [a 10MW in] reserve, we’d continue to be threatened. …We’d still be at risk of having power failures,” he said during yesterday’s press briefing at the Multi-Purpose Center in Susupe.

This came as CUC said that Power Plant 1 Engine 4, which is currently down due to a crankpin seizure, could not be fixed within the year.

CUC executive director Lorraine A. Babauta said yesterday that Engine 4’s crankshaft has yet to be ordered and its manufacturing, shipping, and installation shall take place in approximately 10 months.

She said that, as of last week, total generation capacity was at 66 MW. Yesterday, it went down to 65MW due to some engine problems at Power Plant 4.

Meantime, CUC power generation manager Al Santos said that total generation is expected to increase today to 68MW as Power Plant 2 Engine 4 will be up with 1.6MW and Power Plant 4’s engine 3 with 1.8MW.

Right now, Power Plant 1, which consists of six operational engines, generates a total of 53MW; Power Plant 2, which has two functioning engines, produce 3.2MW; and Power Plant 4, which has six operational units, generate 8.8MW.

Gov. Babauta said the power supply would actually exceed the local demand of some 68MW by middle of next month when Engine 3 is expected to be up. Engine 3 would generate an additional 6.5 to 7MW.

But such a scenario—supply excess—would not happen since CUC intends to voluntarily shut down Engine 1 by that time for needed maintenance, he said. Power Plant 1’s Engine 1, which produces 6.5MW, is now 36,000 hours overdue for repairs, said CUC.

By design, Power Plant 1 has a capacity of 81.2MW, Power Plant 2 has 15MW, and Power Plant 4 has 17.5MW.

Power Plant 3’s three engines, which have a total capacity of 4.5MW, are currently all down.

Meantime, Babauta denied that he would keep CUC under his control until next year. The governor earlier indicated that the emergency control would remain until CUC has achieved a power reserve.

In his Sept. 16 memorandum, the governor said that he extended his emergency power over CUC for another 30 days because of CUC’s continued lack of reserve power generation capacity.

A reserve power would be realized if Engine 4 gets fixed, which is next year.

“I don’t really want to do that,” said the governor on the inquiry if he would keep his emergency for a much longer period of time.

He said he wishes he could now turn over CUC to the board, but even “some CUC board members are still nervous about taking CUC back” due to agency’s lack of finances.

The governor has been in direct control of the utility firm since May 19 this year, owing primarily then to CUC’s unstable fuel supply. The governor justified the emergency control, citing CUC’s failure to collect enough revenues to pay off fuel and the power generation engines’ rundown condition.

The government has paid a total of $13.3 million to CUC for utility use in fiscal year 2005. This is $7.3 million more than the annual appropriation for utilities. On top of this, the governor has reprogrammed some $9 million for CUC’s emergency needs since May this year.

The administration said that it is providing CUC at least $1 million subsidy a month for fuel purchase.

CUC said it pays $6.2 million for fuel a month. It gets $4 million from customers’ payment, $1 million in government subsidy, and $1.2 million from the fuel surcharge.