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‘Aggreko deal won’t boost power rates’
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Posted on Jul 18 2008
The Commonwealth Utilities Corp. will be able to pay its lease payments to Aggreko International Power Projects without impacting local consumers’ power bills.
CUC executive director Antonio Muna said their analysis indicates that, with increasing usage due to 24-hour power and costs savings as a result of not having to implement load shedding, the utility agency can pay its Aggreko lease without impacting power rates.
Muna told Saipan Tribune that he shares MP Magazine publisher Ed Propst’s concerns that there may be a power rate increase as a result of engaging Aggreko’s services.
Propst had expressed concern about underlying and hidden costs associated with the Aggreko contract which, according to him, will be ultimately be passed on to the consumers in another form of increase in the billings.
Muna said he is not sure as to what underlying costs Propst was referring to.
“Aggreko costs are lease payments at 5 cents per kilowatt an hour and we provide the fuel,” he said.
Contrary to claims being made by certain sectors, Muna said, other than the advance lease payments to be made, CUC does not incur charges until after Aggreko power units are put on the grid and are producing power as agreed in the contract.
