Commonwealth Utilities Corporation Executive Director Kevin Watson speaks during a meeting with the CUC board of directors on Thursday. Also in the photo are CUC Chief Financial Officer Betty Terlaje and other CUC managers.
THE Commonwealth Utilities Corporation board of directors approved during a special board meeting on Thursday a new $3.2 million contract with Aggreko to continue providing 12 megawatts of power generation capacity.
The current contract with Aggreko will end on May 31, 2025, according to CUC Executive Director Kevin Watson.
He said what the CUC board approved is not an extension but a new contract for power generation capacity for 52 weeks.
“The new contract will start on June 1, 2025 and end on May 31, 2026. We have to maintain 12 MW power to prevent Saipan from having rolling brownouts and meet the demand while we do some more maintenance and overhaul existing engines, which we’ll be able to complete within the next 12 months,” he added.
Aggreko’s contract with CUC has been extended multiple times in the past five years.
According to Watson, under CNMI law, CUC can only extend Aggreko’s contract for a maximum of five years.
Hence, the CUC board approved an emergency declaration for power generation and authorized Watson to enter into a new agreement with Aggreko.
As for the two proposals for power generation received by CUC, Watson said the Request for Proposals will be canceled.
He said the cost is “more than what CUC has in available funds.”
He added, “Each of the two proposals [would cost] over $8 million for power generation, but CUC’s budget is only $4 million.”
This is why he asked the CUC board of directors to approve the management’s request for emergency procurement of temporary power generation.
Present at the special board meeting in the CUC conference room were acting CUC board chairman Donald Browne, board members Miranda Manglona, Becky White, Rufo Mafnas and Simon Sanchez.
