CUC needs $4M to complete major rehab of power plants

The lack of funds is hindering the start of major repair work and rehabilitation at the Commonwealth Utilities Corp.’s power plants, said executive director Abe Utu Malae yesterday.

Malae told Saipan Tribune that CUC needs about $4 million to complete repair and maintenance work of all its power plants on Saipan.

Of the amount, about $2.5 million will be from an American Reinvestment Recovery Act grant that will pay for radiators, while a portion will come from the anticipated $10 million loan guaranteed by the U.S. Department of Agriculture, he said.

“We have to manage our cash carefully. We have delayed any major repairs because of cash availability,” Malae said.

He assured, though, that the current power production total of 54.7 megawatts is enough to meet Saipan’s power needs for now.

Malae said that Saipan’s peak power need is 35MW, therefore the 54.70MW is sufficient for now.

The island’s current power demand is a slight decline from previous months’ record of up to 57MW.

Saipan has three power plants in Lower Base with a total of 18 engines, but a few units are sidelined for repairs. Based on the power generation status report as of March 30, 13 engines are operational and five are non-operational.

Malae said that power plant 1 produces 41MW, power plant 2 has 4MW, and power plant 4 has 9.7MW.

In power plant 1, which has eight diesel engines, only one engine does not functioning as mechanical parts and materials have yet to arrive for repair work. This power plant produces a total of 41 MW—lower than the 71.70MW it is designed to produce.

Power plant 2 has four diesel engines and is supposed to produce 10MW. At the moment, it is producing only 4MW because two engine units are non-operational—one is down due to generator issue while the other unit needs exhaust smoke stacks repair.

Power plant 4 produces 9.70MW, slightly lower than 14.50MW it is designed to produce. Of its seven engines, two are down and need major overhaul and maintenance.

Because repair work on power plant 4 engines is ongoing, Malae said that all seven engines are expected to be operational in June this year.

Malae also cited processing delays for the holdups. He disclosed that just to correct small typographical errors can easily add a week to the process period.

“We are in a mad rush to beat the deadline, Aug. 30 [for project completion], but the sub-grant agreement is wending its way through Capital Hill,” said Malae, adding that CUC does not expect any major power problems or challenges so long as it meets the project deadlines.