HAGÅTÑA (The Guam Daily Post) — The Guam Power Authority has been working to complete certain projects that are part of a consent decree with the U.S. Environmental Protection Agency, a move meant to bring the utility in compliance with federal emissions regulations while avoiding hundreds of millions of dollars in potential fines.
A key project is the commissioning of a new power plant in the Ukudu area of Dededo. GPA signed a 25-year agreement with the Korea Electric Power Corp. and Korea East-West Power consortium in late 2019 to build and operate the power plant.
However, the battering Typhoon Mawar handed Guam in late May ended up damaging and folding storage tanks being set up at the plant.
That is expected to delay the project, although it’s unclear by how long. That leaves GPA and U.S. EPA with matters to discuss regarding their consent decree.
According to Alejandro Diaz, a public affairs specialist at U.S. EPA, the power utility submitted a notice of force majeure, or a letter regarding uncontrollable events, to the federal agency on May 30, and a follow-up letter on June 13 with more details on the potential impacts to GPA’s work under the consent decree.
U.S. EPA and GPA will be scheduling a time to discuss what was impacted and how long a delay GPA will be requesting, according to Diaz. U.S. EPA works with facilities impacted by natural disasters on a case-by-case basis, he added.
In the wake of expected delays with the Ukudu power plant, GPA is hoping to extend the performance management contract with Taiwan Electrical and Mechanical Engineering Services Inc. for the operation of the aged Cabras power plant.
The decades-old plant was scheduled for decommissioning by the end of October 2024, after the Ukudu power plant was to come online in April of that year.
GPA General Manager John Benavente has said he heard the Ukudu project may be delayed for up to a year.
For now, the Cabras power plant remains necessary to meet the island’s daily energy demands. Extending the TEMES contract is critical to ensuring the operation of the plant through October 2025, a GPA resolution had stated.
The decommissioning of the Cabras power plant is also part of the consent decree with U.S. EPA.
When asked if the federal agency is considering an extension of these projects without penalty to GPA, Diaz said U.S. EPA is awaiting further information from the power utility to consider an extension.
Construction at the site of the new Ukudu Power Plant in Dededo is pictured on Monday, July 10, 2023.
