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Aggreko contract expiring June 1
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Posted on Mar 24 2023
Dallas M. Peavey Jr.
Four years after first signing up with private power provider Aggreko, the Commonwealth Utilities Corp.’s extended contract with the power provider is expiring on June 1, 2023, after which CUC will evaluate if it still needs Aggreko’s power supply.
Acting CUC executive director Dr. Dallas M. Peavey Jr. said in an interview Tuesday that they will be evaluating if in fact CUC still needs Aggreko’s power supply after the contract expires.
He pointed out that the new power engine for CUC’s Power Plant 1 in Lower Base will take several more months to install and, if they still need Aggreko to ensure there is enough power for Saipan’s use, then they will have to extend that contract again so they will have sufficient power supply capacity.
CUC’s power purchase agreement with Aggreko entails the supply of 12 megawatts of supplementary power as CUC undergoes major engine replacement and maintenance. The PPA contract started in 2019, with CUC paying Aggreko a fixed monthly cost of $302,400, according to the transition report for CUC.
The original contract with Aggreko was to provide temporary power for 90 days while CUC’s generator engines are being overhauled and repaired. That contract was first extended in January 2020 for another 90 days, then extended several times more.
On average, Saipan reportedly needs 33MW of power supply. The peak load is 37MW. Presently, CUC’s power plants are restricted to 36MW, with 8MW of reserve and this includes 12MW of power provided by Aggreko.
