[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6663456,"mediaKeyId","2390848-59bfa985029f8510f3c216f518c486b5","parentId",2390848,"title","CUC seeks short‑term power while rebidding contracts and pursuing new generators; senators briefed on parts, foundations and timelines","audioSeconds",2906,"startMs",2503000,"endMs",5409000,"viewUrl","/Search/View?dp=1&key=2390848-59bfa985029f8510f3c216f518c486b5&start=2503&end=5409","thumbnailUrl","https://assets.pipeline.soar.com/2390848-59bfa985029f8510f3c216f518c486b5/thumbnail_2503000.jpg","articleUrl","/articles/6663456/CUC-seeks-shortterm-power-while-rebidding-contracts-and-pursuing-new-generators-senators-briefed-on-parts-foundations-and-timelines","mediaUrl","https://secure.pipeline.soar.com/6663456-66273fbe3730e62bb66b09fe3334ed66/orig.mp4?Expires=1770736409&Signature=Gecru293FmWkdfvHaBzNQgBdM8DASDwmWKytnnoqKHt8AQAOaFL1rn7ZeX66p7geQyf6csEdI1c3z78OMjlp9Zn0JLZJIUQJS8v0DRQgpDuvHqaMdF2OTzVtGUxBACBJB7dfi1E-3TpjNmkwzMS2YwODx9swu~xNZUz-X56m6Wpb6bijSz0vPbedd8NbpjOv5DZ8ghPF8j6Rgs8y1WwkFLHL15y4LLEzNbXgybI-SSxgjoexSwFAAId5bNQeqpi-F7DqjEEINq5sluoQ53RAuJbbCoekhJnexHVLAKICQTSG4angOBGHEkGBaHZaiBTJORZInbihKduZpms1177lZQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Senate - Northern Marianas Commonwealth Legislature","date","2025-02-26T00:00:00Z","article","The Senate Public Utilities, Transportation and Communications Committee heard Feb. 20 that Commonwealth Utilities Corporation (CUC) is releasing a solicitation for temporary power to cover shortfalls and allow necessary maintenance while the utility seeks longer‑term replacement generators.

The committee was told the current private provider contract will expire in May 2025 and cannot be renewed. “The Greco contract has been, in place over 5 years. It comes to an end this May 2025, and it can't be renewed,” CUC Executive Director Kevin Watson told senators.

CUC said it released a solicitation the day of the hearing for a temporary 12‑megawatt power lease, with a pre‑bid meeting set for March 6 and bids currently expected by March 31. Contracting administrator John Mofnes said the solicitation period will run about 30 days and that awarded equipment could take roughly 350 days from order to delivery and commissioning.

CUC engineers told the committee the utility’s in‑service engines are aging, parts availability is constrained and several units are offline for maintenance or foundation repair. “Our engine is already beyond service life. We need new engines, need new power plant,” said Richard Kano, CUC technical staff. He explained some manufacturers have ceased production of required parts, forcing CUC to re‑engineer and rebuild components in‑house.

CUC staff described foundation failures on some engine blocks and said one engine (No. 6) was offline for foundation repair, a condition they attribute to age and original design. Staff said engineers have identified a higher‑strength re‑engineering approach used successfully on other engines and intend to pursue a sole‑source repair contract pending required approvals.

Committee members raised procurement and schedule risks. CUC staff recounted a prior procurement to buy new generators that was protested and tied up for more than a year, delaying replacement. A protest focused in part on EPA Tier 4 emissions certification language in the RFP; CUC staff said they denied the protest and that prolonged appeals could have reached superior or supreme court, adding years to the process.

CUC said several parallel options are being pursued: rebidding smaller generators (3‑MW units were discussed), pursuing public‑private partnerships, seeking Department of Energy financing for longer‑term loans, and applying for federal grants for solar plus battery projects. The utility noted that procurement regulation revisions are expected to be considered by the CUC board and then published for public comment; CUC said those changes are intended to reduce delays caused by protests.

On cost and timing, staff estimated the short‑term lease and associated budgetary needs at roughly $4.5 million for temporary capacity. Installing long‑lead new engines was described as likely to take about two years from award under an uncontested schedule, with protest or procurement delays extending that timeline.

Senators asked for tours of the power plant and for CUC to provide a “wish list” and schedule for new equipment and potential grants; CUC said it will schedule a legislative tour and provide detailed procurement timetables. No binding procurement decisions were made by the committee at the hearing; the session was informational.

Ending: Senators said they want regular updates and a plant tour to better evaluate tradeoffs between leasing temporary power and investing in new generation and renewables.","mediaType","Video","parentTitle","250226 24th NMCL Senate PUTC 9:30 a.m.","oneSentenceSummary","The committee reviewed CUC’s temporary power solicitation to replace expiring private generation, ongoing reliance on AGRRECO/Greco, engine obsolescence and parts supply limits, foundation repairs to older generating units, and an estimated two‑year timeline to place new engines in service.","taxTitle","Senate, Northern Mariana Legislative Sessions, Northern Mariana Islands","taxId",20282,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6663461,"Senate hears history, payments and proposals tied to CUC–CEDA 2009 preferred-stock dividend",2204,298000,2502000,"/Search/View?dp=1&key=2390848-59bfa985029f8510f3c216f518c486b5&start=298&end=2502","https://assets.pipeline.soar.com/2390848-59bfa985029f8510f3c216f518c486b5/thumbnail_298000.jpg","/articles/6663461/Senate-hears-history-payments-and-proposals-tied-to-CUCCEDA-2009-preferred-stock-dividend","https://secure.pipeline.soar.com/6663461-664776e86acf4752f66e8c753b618fbf/orig.mp4?Expires=1770737050&Signature=Izc3K49n4ctWgO0EaVYZnue-Nnxs-L5IArampgqVuUCrp-PxDsA5Xmicq89RMMcW0wIkM3IlV5VWGd~-MLoukf5~ix1sceRiDX66~~V8ayH7MNZGzTgDvJaUOYmDgK6P0VbF3pi61Ume~DtO02PWp-cY7z~sDUcdahsaRXyhKkDPhsp0eCJTA29YteuPg8~~bX1euM17NUIZUkAXcKebQu492~4U5tpbP0WhX6lQ27wrPTYh~wMS0RngaTIW0D-Zsjjc5-I~z9xz3TMBQ74frBGk2wxXUOclwERFCJTB4XhGZnJcBT1hM~G6QfkHadhDLz3aSYpzn7eM1g1GUMddWA__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Public Utilities, Transportation and Communications Committee held an informational hearing Feb. 20 on the 02/2009 preferred‑stock agreement between the Commonwealth Utilities Corporation (CUC) and the Commonwealth Economic Development Authority (CEDA), reviewing the agreement’s history, current payments and previous legislative proposals to alter how dividends are used.

The discussion matters because the preferred‑stock arrangement and its dividends affect CUC’s operating costs, CEDA’s infrastructure funding and past legislative attempts to redirect the funds. Committee members sought detail on how much has been paid and how those funds have been used or pledged for other obligations.

Frank Rebaliman, chair of CEDA, told the committee past legislatures had attempted to remove the dividend obligation and that the topic prompted comments from CEDA’s board. “House Bill 23‑52 attempted to write off the whole obligation,” Rebaliman said, describing why CEDA submitted written comments to the committee.

Betty Terlahi, chief financial officer for CUC, summarized the preferred‑stock terms used in conversation at the hearing: “The preferred stock was issued at 45,000,000 shares with a 2% flat payout,” she said, and explained how that converts into annual and quarterly payments. Terlahi said the payout formula equates to about $1,080,000 per year paid in advance in quarterly installments of $270,000.

CUC staff and CEDA representatives reviewed the loan history cited in the committee materials: an initial infrastructure loan in 1988 of roughly $50 million for power generation, a subsequent roughly $16 million for sewer and wastewater, and a later $5 million, which staff said collectively exceeded $70 million and was later converted in part to the 2009 preferred‑stock instrument.

Terlahi told senators CUC has paid into the preferred‑stock arrangement since issuance and gave a cumulative payment figure for the committee record; she stated a total paid to date of roughly $9.19 million and that the most recent quarterly payment was made Jan. 8 for the second quarter of fiscal 2025. A fiscal analyst on the Senate staff pointed to a CEDA letter that listed a different year‑to‑date figure ($13.5 million) and asked the presenters to reconcile the numbers.

Committee members also discussed a previously proposed bill that would have returned dividends to CUC for infrastructure or converted the preferred stock back to CUC ownership. Watson and CEDA witnesses said a proposal that would have moved funds or forgiven obligations did not become law and that a sum previously identified for return—about $7.75 million—was used by the government last year to pay a 25% retiree pension obligation under a separate action, per presenters’ statements.

CUC and CEDA staff said the dividend proceeds are restricted by the original agreements to infrastructure uses while held by CEDA; CUC said it does not control where CEDA places those funds. CEDA chair Rebaliman and CUC staff urged that any legislative change returning funds to CUC include restrictions requiring the funds be used for infrastructure, so the money would continue to match the agreement’s original intent.

Senators requested that CUC and CEDA provide the committee full documentation of the 02/2009 preferred‑stock agreement, prior write‑offs and any legislative proposals or letters referenced during the hearing so the legislature can review the facts before any future bill is filed.

The committee took no binding action on the matter; the session was informational and the senators said further materials and possible follow‑up hearings could be scheduled.

Ending: Committee staff said they will compile the documents requested and that the hearing record will inform any future legislative steps. Senators said the topic will be reported to the full Senate.","Lawmakers received a briefing on a 2009 preferred‑stock agreement between the Commonwealth Utilities Corporation and the Commonwealth Economic Development Authority, historical loans dating to 1988, quarterly dividend payments, and prior failed bills to return or forgive those funds.","actionData","errors"]

Article not found

CUC seeks short‑term power while rebidding contracts and pursuing new generators; senators briefed on parts, foundations and timelines

Senate hears history, payments and proposals tied to CUC–CEDA 2009 preferred-stock dividend