Delay sought in full implementation of renewable resources

The Commonwealth Utilities Corp. and the consultant for the Commonwealth Public Utilities Commission recommend a delay in the full implementation of renewable energy in the CNMI.

In their latest filing with the commission, CUC and Georgetown Consulting said they strongly support acquiring and developing renewable resources but believe that delaying its implementation to 2016 is in the public’s best interest.

An initial technical assessment report issued by the National Renewable Energy Laboratories in July last year indicated that the Commonwealth has the potential for renewable energy.

However, according to CUC and Georgetown, that report does not quantify the potential renewable energy that may be developed using primary energy sources. More work needs to be undertaken to develop an achievable and comprehensive renewable energy development strategy for the CNMI, they said.

“We would expect that, with reasonable and timely funding, such additional work should be completed no later than 2015. An interim RPS [renewable portfolio standard] will assure the citizens of the CNMI that cost-effective and sustainable renewable energy development will be encouraged pursuant to established public policy of the CNMI,” they said in their proposal to the CPUC.

The commission is expected to tackle and act on the proposal on Friday.

For CUC and Georgetown, the existing RPS standards are not in accordance with the standards established by state legislatures or regulatory commissions.

“The existing RPS standards are extremely aggressive, are not cost-effective and are inconsistent with state RPS standards established by mainland state legislatures or regulatory commissions,” they said.

The CNMI’s renewable portfolio standard establishes a stepped approach for the implementation of renewable energy, with an ultimate goal of achieving 80 percent of net electricity sales from renewable energy by 2014.

According to CUC and Georgetown, these standards are far more aggressive than found in the U.S. mainland. A review of the RPS requirements in the western U.S. reportedly shows the following goals: achieving the RPS maximum percentage of renewable resources by 2020 or 2025 except in California; the maximum percent of renewable resources is either 20 percent or 25 percent; and lower RPS requirements for small publicly owned utilities such as municipal utilities, rural electric cooperatives, and public utility districts.