He said the commission’s involvement in the procurement process is “unnecessary” as long as power rates are not affected.
Senate Bill 16-38, now known as Public Law 16-9, states that “PUC shall not have the power or duty to review an emergency wholesale power generation contract.”
Muna said he reviewed the old enabling act of PUC, and said the commission’s authority over CUC’s bid to secure emergency power service is no longer required “because I would feel that what PUC needs to regulate is basically CUC and its application of rate based on the cost of doing business” with its hired contractor.
“When we [approached] Aggreko [International Projects Ltd.], we did send communications to PUC that our obligations with Aggreko will not necessitate an increase in the rate,” Muna stated.
“For all intents and purposes, the public interest isn’t really being served” in the PUC Act of 2006, he said, adding “it’s just an administrative burden” for the contractor and CUC to go through the commission’s review.
According to Muna, CUC’s contract for emergency power is not to be delivered directly to the customers but to the utilities agency.
Based on Muna’s interpretation of P.L. 16-9, PUC can intercede or invoke its authority only when an independent power provider will hook up directly to the customers for power service and bill them directly.
Muna cited Guam’s Consolidated Utilities Commission, which do not review the Guam Power Authority’s procurement of power from independent power producers.
Press Secretary Charles P. Reyes Jr. earlier said P.L. 16-9 removed one of the obstacles “in bringing the necessary power generation to the island.”
