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Despite cheaper oil, green energy still a go
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Posted on Nov 03 2008
The Fitial administration says it will not abandon alternative energy projects despite the dropping oil prices.
Press secretary Charles P. Reyes Jr. said that Gov. Benigno R. Fitial, in a meeting with his Cabinet yesterday, expressed his continued interest in exploring the possibility of developing geothermal energy on Pagan.
“The governor is still bullish about the long-term prospects of renewable energy in the CNMI. Oil prices are ever fluctuating. We may be getting some relief now, but in the next six months or one year, it could go back up again,” Reyes said.
The price of oil has plunged below $70, a huge drop from the record $147.27 set on July 11. The downward trend in crude prices has caused some relief at the pump. This month, it will show in the power bills as well, as electric rates drop by 6.7 cents per kWh. From 33.7 in October, the electric fuel rate charged by the Commonwealth Utilities Corp. will be 27 cents this month.
“The governor is very pleased that we’re going to be able to see some reduction in the power rates,” Reyes said. “But he urged the Cabinet to continue conserving energy, not just because it saves the government money but also because it generally is good policy.”
The U.S. Department of the Interior has offered the CNMI a $220,000 grant to study whether it is feasible to build a geothermal plant in one of the islands north of Saipan, most probably Pagan. Fitial has appointed his alternative energy adviser, former USGS volcano expert James Quick, to lead the ongoing effort.
Earlier this year, CUC issued a request for proposals for a renewable energy project. However, the utility stopped the procurement after the Office of the Public Auditor found flaws with the process. OPA said that while there was nothing improper about CUC’s choice of procurement method, the criteria set forth in the RFP were not specific enough to ensure a fair selection.
