- Published on Friday, August 10, 2012 00:25
- Written by By Junhan B. Todeno - Reporter
- Hits: 998
SINCE July when the Commonwealth Utilities Corp. entered into a buyout agreement for the operation of Power Plant 4, it has already made two monthly payments to Pacific Marine and Industrial Corp., CUC acting Executive Director Alan W. Fletcher said.
Fletcher said CUC is also meeting its obligations to Mobil, its fuel supplier.
“We don’t have credit because if we don’t pay them we don’t get any fuel,” he added.
Fletcher said they need 1,065 barrels or 45,000 gallons of fuel a day to run the power plants.
CUC’s only source of fuel is Mobil, which must be paid in cash.
In fiscal year 2008. CUC recorded its highest fuel expenses of $81 million for the last six years since 2005.
CUC’s power plants consume 2 million gallons of fuel per month.
Based on its audited financial statements, CUC spent $381.3 million on fuel from 2005 through 2010.
CUC spent $59.2 million on fuel in 2005, $76 million in 2006, $62.7 million in 2007, $81 million in 2008, $47.7 million in 2009 and $54.8 million in 2010.
Fletcher said the condition of the power engines determine their efficiency and volume of fuel consumption.
At present, he said the most fuel efficient engines are at Power Plant 1 in Lower Base.
“We have plenty of reserves and adequate capacity to continue serving the people,” he added.
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