Citing the possibility of an engine breakdown, the Commonwealth Utilities Corporation disclosed plans yesterday to proceed negotiations with Enron this month.<\/p>\n
According to CUC Executive Director Timothy P. Villagomez, utility officials discussed potential problems like breakdown and maintenance cost with newly-hired legal counsel who started drafting choice documents to protect public assets and consumers.<\/p>\n
Once the contract with Houston-based Enron pushes through, Mr. Villagomez is optimistic it will be a major economic boost to the Northern Marianas and for businesses using full-time power supplies.<\/p>\n
Vice chair Laura Manglona, who also heads the contract team, said talks are ongoing although there is no definite date yet as to when negotiations will be completed.<\/p>\n
Ms. Manglona said once the contract is signed, permitting processes and actual construction will begin by 2002 to 2003.<\/p>\n
“We hope negotiations proceed without problems, and we don’t foresee any,” said the vice chair adding negotiations should push through unhampered and the power plant be built before older engines fail.<\/p>\n
Prices, negotiating terms and cost ratios are not released pending procurement procedures, Ms. Manglona explained.<\/p>\n
Apart from the Enron talks, the CUC board met this week to discuss budgetary problems and the persisting operating losses caused by spiraling fuel costs and increasing government utility debts.<\/p>\n
The board contended that operating income should be generated to take care existing fleet of engines and maintenance of power plants.<\/p>\n
Presently, the utility agency has five power plants supplying electricity to Saipan, Tinian and Rota.<\/p>\n
The board believes that the Enron power plant project is Saipan’s single most significant construction project that will boost the CNMI economy and a reliable source of energy at affordable prices.<\/p>\n
Utility officials underscored the need to proceed with the project immediately to prevent possible energy problems in the future similar to problems experiencing by California energy companies.<\/p>\n","protected":false},"excerpt":{"rendered":"
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