He said if Telesource change order number 5 is approved it will result in a rate increase of $5.74 per month for a 1,000 kwh customer based on CUC’s calculations.
“This analysis is understated. Since this analysis was prepared, Tinian kwh volume has dropped and we have not had a chance to rework the analysis,” he said in an email.
Fletcher said he has yet to review the calculations of the Commonwealth Public Utilities Commission’s technical consultant, Georgetown Consulting Group.
He said the change order changes how CUC pays Telesource for power on Tinian.
Currently, he said, payments “are made primarily on production volume, with recognition of a fixed capacity fee.”
Change order number 5, he added, will reverse the equation — the capacity fee raises significantly, “therefore we pay more of a ‘fixed-fee’ for service.”
However, the positive side of change order number 5 is that it allows CUC to pursue renewable energy projects on Tinian, he said.
CPUC is currently reviewing the change order proposed by Telesource.
