The new law also mandates up to $3.4 million in power bill rebates for residential customers within one year and six months from July 21 and creates a power rate reduction program within 54 months.
House Bill 16-130, now known as Public Law 16-7 or the Emergency Power Generation Act of 2008, mandates the Department of Finance to earmark $3.4 million of remittances from the Marianas Public Lands Trust to CUC so it can pay Aggreko $1.5 million; Pacific Marine and Industrial Corp., which runs Saipan’s Power Plant 4, $1.1 million; and Telesource, which operates CUC’s power plant on Tinian, $800,000.
Rep. Victor B. Hocog, Ind.-Rota, and eight other lawmakers sponsored the bill that was passed on Friday by both houses of the Legislature.
Earlier, CUC Executive Director Tony Muna assured Aggreko’s sales director for Asia, Stephen Dunlop, that the CNMI government could make the initial payment of $1.2 million.
CUC expects the Aggreko generators from Singapore to be shipped to Saipan within 36 days.
Under its contract with CUC, Aggreko will sell power to the government-owned utilities corporation for 5 cents per kilowatt hour.
But consumers must pay CUC’s current power rates.
As in its agreements with PMIC and Telesource, CUC will still buy fuel for Aggreko’s generators.
Muna said their plan is to lease Aggreko’s generators at least one year while CUC rehabilitates its antiquated engines at Saipan’s Power Plant 1.
This month, CUC’s residential customers, who have to endure daily blackouts, pay as much as 50 cents per kwh for their electricity — 39 cents higher than what they paid before July 2006.
