Previous Story
Basa wants 20-year contract awarded to provider of cheap renewable power
|
Posted on Jun 18 2012
As Fitial admin holds off 1 of 2 energy contracts
By Haidee V. Eugenio
Reporter
Reporter
House Ways and Means Committee chair Ray Basa (Cov-Saipan) wants any contractor that can provide renewable power for not more than $0.185 per kilowatt hour to be “immediately” allowed to sell that power to the Commonwealth Utilities Corp. Moreover, if that contractor provides the first 30 percent of existing power capacity via renewable energy, then it should be awarded a 20-year contract with CUC, he said.
A similar proposal was offered earlier by Rep. Stanley Torres (Ind-Saipan), but the latter withdrew the bill for further review.
At the same time, the Fitial administration is holding off contract award to one of two firms seeking to provide renewable energy to CUC. Gov. Benigno R. Fitial placed CUC under a state of emergency.
Lt. Gov. Eloy S. Inos said CUC is going through “last legal review” of the contract with U.S.-based American Capital Energy Co. whose local business partner is Herman Sablan.
The contract with Japan-based Saipan Solar System is the one currently on hold for technical reasons.
Basa’s House Bill 17-307 seeks to provide for an “expedited and mandated method for increasing low-cost alternative energy to CUC.”
The bill will be introduced during the House’s next session, after the CNMI Legislature’s hosting of the Association of Pacific Island Legislatures’ 31st General Assembly.
Basa said nearly four years after mandating CUC’s immediate incorporation of renewable power into its power production, the CNMI has yet to see results.
“Renewable energy is capable of reducing the CNMI’s dependence on imported oil and lowering utility rates for the entire Commonwealth. Therefore, the Legislature intends to mandate the inclusion of renewable energy of up to 30 percent of existing total power capacity of CUC based on a first-com first-served basis,” Basa said in his bill.
Under HB 17-307, “any contractor that can provide renewable power for not more than $.185 per kwh should be immediately allowed to provide power and obtain payment for that power from CUC.”
