CUC seeks short‑term power while rebidding contracts and pursuing new generators; senators briefed on parts, foundations and timelines
February 26, 2025 | Senate, Northern Mariana Legislative Sessions, Northern Mariana Islands
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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.
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.
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