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‘Protect integrity of process for CUC power plants’ privatization’
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Posted on Jan 07 2005
Citing the project as one of the two major solutions to the Commonwealth Utilities Corp.’s financial troubles, a CUC director reminded the management yesterday to protect the integrity of the power plant privatization bid process.
The bidding period for the project ended at 2pm yesterday. All six pre-qualified bidders should have turned in their final proposal by that time.
Harris Group, the consulting firm hired by CUC to do the scope of work for the project, will then evaluate the proposals and make a recommendation to the CUC management and board of directors.
In a board meeting on Thursday, acting CUC chair Herman P. Sablan urged the management to ensure that the bid process moves smoothly and honestly.
“The power plant privatization and the separation of the water and sewer operations from CUC are two projects that will resolve our problems. When these happen, we will have a surplus and it will take care of the whole corporation, including personnel and salary issues. We don’t want anybody messing with these two projects,” Sablan said.
Working on behalf of CUC, Harris Group had put out a request for proposals from independent power producers to modernize, upgrade, operate, and transfer the two Lower Base power plants.
CUC has four power plants: two in Lower Base, one in Isley Field, which is not operational; and the Puerto Rico power plant, which is being petitioned by local residents to be relocated due to noise and alleged environmental pollution. The Puerto Rico plant is run by a private group.
CUC’s contract with Harris Group cost $103,000.
The utility firm is also eyeing to remove water and sewer operations from its responsibility.
On Dec. 14, 2004, the CUC board of directors voted unanimously to adopt a resolution urging the Babauta administration to propose to the Legislature an amendment to the CUC Act to remove the water and sewer operation from the utility firm’s responsibility.
Currently, CUC barely earns revenues from its delivery of water and sewer services. As a result, income collected from power services is used to subsidize the two other divisions.
