CUC kicks off exploratory survey for privatization plans

With the enactment of a law early this year authorizing the privatization of the Commonwealth Utilities Corp., the utilities agency started today the process of looking for potential buyers who want to buy and operate the agency.

In an announcement seeking “expressions of interest,” CUC said the privatization may include direct purchase, operating contract schemes, utility agency or co-operative formation for the electrical power generation systems, electrical transmission and distribution systems, and water and wastewater utility services.

The announcement states, however, that the request for expressions of interest is only an exploratory project in order to survey the market interest in owning or operating CUC.

Acting CUC executive director Alan Fletcher said it is not intended to be a formal or informal procurement process and CUC does not express or imply that any future procurement and acquisition process will occur, or that any preference will be given to those who will reply to the survey.

In its announcement, CUC is specifically on the lookout for utility owners and operators with proven records of accomplishment in power generation, transmission, distribution, and water and wastewater utility ownership and operations.

Based on the survey result, Fletcher said that CUC will decide if it will pursue the privatization of the agency. Interested responders can turn in their proposal until Dec. 12, 2011.

Public Law 17-34 was signed on March 10, 2011. It scrapped the $250-million price tag to privatize the CUC and paves the way for the agency to immediately partner with private producers of renewable energy such as solar, wind, geothermal, biomass, or nuclear battery.

Among the key provisions of the new law include exempting renewable energy providers from the net metering law, expounding on the types of renewable energy projects, and adding a “build-operate-own contract” to the list of allowable private sector assistance agreement.

CUC has met with at least 12 producers of renewable energy in several months.

The CUC privatization bill was one of the priority bills identified by both the Fitial administration and the 17th Legislature that is expected to help boost the sagging economy.