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Generators’ readiness in question
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Posted on Sep 10 2008
The recent heavy rain is affecting progress in the installation of the emergency Aggreko generators, and it is unclear if they will be ready to be turned on tomorrow.
Everything on CUC’s side, including an adequate fuel supply, is ready, but the Aggreko side is having some trouble with the weather, said Commonwealth Utilities Corp. executive director Antonio Muña yesterday.
The generators were scheduled to be turned on tomorrow and provide 15 megawatts of additional power to the island by Sept. 16 or 17.
Muna said he would not have additional information until he spoke with Aggreko site manager Wayne Lee. He was expected to meet with him yesterday evening.
On Tuesday, Lee said the weather was making the installation process difficult, and he was working around the clock to overcome the obstacles and get everything ready by Friday.
Muña’s only concern as the generators are about to be turned on, he said, is the “expense situation.”
There needs to be a decrease in costs and an increase in revenue to pay for the generators, he said.
Under the $6-million contract, CUC paid Aggreko $1.5 million as a down payment to ship the 18 generators. CUC must pay another $536,000 within 30 days after the generators are turned on, which CUC will pay with incoming revenue, Muna said.
With the power stabilized, CUC should expect to see a 20 to 25 percent increase in revenue, Muna said in an earlier interview.
“Aggreko can bring in an environment for stability,” he said. “We’ll realize revenue increase. It’ll fall into place where we can afford Aggreko.”
Muna said power rates would not increase.
CUC earns approximately $8 to $9 million each month, but Muña declined to say how much of that was revenue because he did not have the proper numbers in front of him.
CUC must still focus on paying past debts, including money owed to the Commonwealth Ports Authority and a debt from an independent power producer.
“The process of recovering still needs to continue,” he said.
