Guerrero, a former Commonwealth Utilities Corp. executive director, said he was already in the process of buying an engine that could provide power 24 hours a day and seven days a week, but he had to hold it back because the administration never answered his proposal.
Press Secretary Charles P. Reyes Jr. said he is not aware of such a proposal but since the Legislature overrode the governor’s veto on the CUC privatization bill, offers like Guerrero’s are now “irrelevant.”
Guerrero said he created a new firm, Power Pro, which can work with CUC as an independent power producer.
Division of Revenue and Taxation records showed that Guerrero holds a business license for a “consulting firm.”
Part of Guerrero’s proposal is to reactivate Power Plant 3 at Isley Field so it can produce up to 30 megawatts.
Guerrero said he plans to use low sulfur heavy oil which, he added, is 45 percent cheaper than diesel fuel oil.
His firm will provide the manpower to operate the plant.
The power plant was built during his time at CUC, but now sits idle.
The proposed project, Guerrero said, will supply power to the southern portion of Saipan — from the Microl intersection all the way to Kagman and Koblerville.
Another part of his proposal is the immediate rehabilitation of the Power Plant 2 in Lower Base so that it can produce 10 megawatts within 60 days from the execution of contract.
“I will buy my own fuel,” Guerrero said. “Every thing will be at my own expense as an IPP. I’m not asking up front money. I’m offering to put $40 million upfront as a start-up.”
In his letter, Guerrero told the governor and CUC that Power Pro can provide reliable power without the agency having to immediately divert cash resources.
He said his firm can assist CUC in countering the high costs of energy production in the CNMI.
In related news, the Division Revenue of Taxation continues to receive an average of two inquiries a month from off-island power companies that want to do business in the CNMI.
Mitsubishi Heavy Industries, Ltd. secured its business license last March for the supply of engine parts, while Powersource Energy Services Inc. got its license last June for the planning, installation and operation of an energy producing system.
