Saipan – The Commonwealth Utilities Corp. will soon be taking over the Power Plant 4 station in Puerto Rico after the utilities firm entered into an agreement to buy out the contract of independent power producer Pacific Marine & Industrial Corp. for $7.25 million.
Acting CUC executive director Alan W. Fletcher confirmed the contract buyout yesterday, saying it will be paid in installments for 27 months. He assured that no funds were reprogrammed for the transaction.
Separately, Lt. Gov. Eloy S. Inos said he signed off on the buyout because it is a lot less expensive than the $16 million that the government would have spent for the monthly payment of $300,000 until the end of the contract in 2016, plus fuel and lube expenses.
Based on CUC data, the early termination of the PMIC contract will provide some $6 million to $8 million in benefit to CUC customers over the next few years.