CCU to resume review of new power plant contract

Photo shows an artist's rendition of the planned new GPA power plant that is capable of using both ultra sulphur fuel and the cheaper liquefied natural gas, or LNG.

The Consolidated Commission on Utilities has not yet reached a decision on the new Dededo power plant contract despite days of discussion and deliberation on the matter.

Tonight, the Consolidated Commission on Utilities reconvenes once more to review and possibly approve the contract to construct a new 198-megawatt combined-cycle power plant in Dededo.

This session marks the CCU’s fourth day of deliberations on the recommendation by the Guam Power Authority to enter into an Energy Conversion Agreement with Korea Electric Power Company or KEPCO to construct a new 198-megawatt combined-cycle power plant in Dededo.

Last week, Sen. Clynt Ridgell, who has oversight over the Guam Power Authority requested a delay in the CCU approval of the contract between GPA and KEPCO pending an oversight hearing.

In an interview with K57’s Andrea Pellacani, Ridgell said the impacts of the new power plant to ratepayers remain unclear.

“They haven’t been able to exactly say how much the LNG plant would cost. How much we are buying the LNG for and factoring those costs. They did, in the hearing, say, when I asked them about it and I kept pressing them about it, they did give a ballpark figure — roughly 200 million for storage and a gasification facility for LNG. But I remember asking them, is it even feasible to do LNG? Again their answers were — we would have to wait until we get to the RFPs on the LNG,” Ridgell said.

The senator added: ” I don’t know what the overall rate impacts is gonna be. We are looking at the documents right now. We have been reviewing it. So that is why I am asking them to hold off until we have more time to pore over this and allow more time to review it. We are talking about a huge investment — $400 million at least for the power plant itself, then we have another $200 million — not sure how much it is going to be — for the liquefied fuel gas.”

CCU chairman Joey. Duenas invited the senator to attend the meeting tonight. He also responded to the senator, in a letter, stating that the commission has not been made aware of any specific questions that the senator might have on the proposed power plant.

Duenas said Ridgell’s input will help the CCU make an informed decision that it feels is in the best interest of the ratepayers, as required by law and duty as their elected representatives.