CUC says $10M loan will fund 27 projects

The Commonwealth Utilities Corp. disclosed that its $10-million loan from Independence Bank will be used to fund several projects and initiatives that will result in more dependable and reliable power, water, and wastewater supply in the Commonwealth.

CUC said that the 27 projects are mostly intended to meet the requirements of two stipulated orders.

The Commonwealth Public Utilities Commission recently approved the loan proposal.

CUC reported to the commission that a large chunk of the proposed loan-totaling some $3.859 million-will be used to build the infrastructure for safe fuel storage, handling and transfer at power plants.

For the design, installation and commissioning of oil, CUC proposes $1.024 million to be used for water separators for tanks, incinerators, office gate, and for the Rota power plant; $775,000 for truck offloading area and containments; $530,000 for storage tank repair and replacement; $680,000 for project management and monitoring; $250,000 for Rota’s used oil program; $200,000 for oil pipeline; and $400,000 for power plant 1’s storm water drainage,

CUC also wants to use $400,000 for power transmission and distribution, which include the procurement and revision of pad mount transformers, switchgear, underground cables, remote controlled ABS, and line materials for line hardening and upgrading project.

For power generation, $3.245 million will be used in the following areas: $200,000 for power plant 1’s building repairs and control roof replacement; $150,000 for power plant 2’s building repairs; $800,000 for power plant 1 engine 2 and 3’s overhaul; $450,000 for power plant 2 engine 1,3,6’s rebuilding; $120,000 for power plant 2’s alternator repair; $104,400 for power plant 1 control room AC replacement; $26,000 for power plant 1 engine room lighting; $1.170 million for power plant 1’s programmed maintenance parts and equipment; $100,000 for fire fighting equipment for power plants 1 and 2; and $125,000 for extension to power generation admin building.

For finance and accounting, $698,077 will be used for the following purposes: $370,000 for installation of 1,000 pre-paid watt-hour meters and $328,077 for resource management system software and hardware.

CUC wants to borrow $10 million from the Rhode Island-based Independence Bank of East Greenwich b to complete the requirements of the stipulated orders. This loan proposal has the backing of U.S. Department of Agriculture.

Independence Bank earlier issued a preliminary commitment letter on the proposed $10 million loan but final approval will depend on CUC’s compliance with all requirements.