Power plant plan uncertain - Pacific Daily News

posted on 03 Aug 2015 10:35 by aboardfuzz3752
ChST August 2, 2015

The Guam power Authority Cabras Energy Plant throughout Piti http://plantthink.com upon Friday, July 31.(Photo: Rick Cruz/PDN)

"The LNG infrastructure is extremely complicated," Horecky stated in a prior interview. EPA throughout negotiations, which might occur within your subsequent few months, Benavente said.. EPA in order to prevail.

The problems regarding bringing GPA's Cabras 1 and any pair of power generating units straight into compliance with almost all the federal air emission guidelines "are now more complex as well as uncertain," Horecky said.

GPA General Manager John Benavente mentioned the particular Supreme Court selection applies towards the Cabras one and two power-generating units, that are 40 many years old.

Power bills go up

Cabras' four power-generating units draw cooling water from the close by sea as well as discharge employed drinking water into the Piti Channel which empties directly into Apra Harbor, which is connected to the Philippine Sea, in accordance with EPA.

Gaynor Dumat-ol Daleno, gdumat-ol@guampdn.com 11:51 p.m. Supreme Court just lately ruled that will U.S. Supreme Court ruling, as well as achievable subsequent court decisions, may affect GPA's plan.

A PUC consultant, Slater Nakamura, reported that if GPA builds the actual Harmon plant with 3 60-megawatt power-generating units that will require infrastructure regarding LNG, the price tag could leading $871 million. GPA had asked to obtain a 6.8 percent increase simply because of the slight improve within the expense involving gas oil, nevertheless PUC decided 1.4 % is sufficient.

PUC's choice ultimately will hinge around the cost involving energy bills GPA clients would wind up paying like a consequence of GPA's project or perhaps projects, Horecky stated inside January.

Even ahead involving the Supreme Court ruling, PUC's legal counsel stated which the high cost associated with GPA's strategy raises concerns.

The U.S. Twenty-three states joined the situation against EPA.

In an unrelated increase, GPA customers might find their power bills go up slightly, by 1.4 percent, starting with meters look at this week. EPA to always be able to routine the particular negotiations.

GPA promises to once again talk about the economic impact of the federal environmental laws using U.S. EPA to become able to effectively consider cost factors that will affect such jurisdictions as Guam."

The PUC retains exactly your same concerns it raised inside its January order, he was quoted saying Friday.

"It can in addition be becoming noted by simply experts in the area that the remain is most likely temporary, and which stringent laws will be applied to these units in the not-too-distant future," Benavente said.

"In addition, there will also be indications these units will possibly be exposed to more stringent clean h2o laws -- once again requiring pricey solutions."

"However, organic beef must see how the actual District associated with Columbia Court involving Appeals handles these problems in remand through the Supreme Court, and any long term appeals or perhaps litigation, before we know the result," Horecky stated.

With price overruns more than the 30- for you to 40-year bond-borrowing repayment period, ratepayers could end up paying way a lot more than $871M inside principal along with curiosity from bonds in which would be borrowed for the project, PUC's consultant provides estimated.

EPA interpreted the Clean Air Act unreasonably if this deemed cost irrelevant towards the decision to always be able to regulate power plants, the court held. The Actual court ruling, Horecky stated, "certainly calls directly into question" specific U.S. Which estimate consists of the expense of LNG infrastructure, which includes any seaport as well as LNG processing as well as pipeline facilities, which usually Guam at present doesn't have.

GPA's strategy to mothball previous power-generating units from Cabras along with substitute them with a new power plant in Harmon could expense $358 million, the GPA estimate this past year stated. GPA's proposed energy plant in Harmon could burn possibly ultra-low-sulfur diesel or even liquefied all-natural gas.

As any result, ratepayers are generally having to pay nearly double the price of h2o in contrast towards the price several years ago.

The rate-setting Public Utilities Commission might talk about GPA's proposal in a September meeting, PUC legal counsel Fred Horecky said Friday.

Price tag concerns

GPA view

GPA can be awaiting U.S. EPA guidelines "and your failure by simply U.S. "It is challenging to speculate, nevertheless I would not be amazed if the project ended up costing $1 billion."

In Guam Waterworks Authority's case, compliance using an additional pair of federal environmental regulations beneath your Clean Drinking Water Act features led to borrowing a lot a lot more than $300 million really worth bond funds regarding infrastructure projects.

Read or perhaps Reveal this story: http://www.guampdn.com/story/news/2015/08/02/power-plant-plan-uncertain/31013021/

Before PUC reaches a new decision, the particular commission and also its consultants are required to consider what kind of June 29 U.S. EPA laws pertaining to power plants beneath the particular Clean Air Act couldn't become enforced with out contemplating whether the advantages for the public outweigh the expense of compliance.

Guam Energy Authority's strategy to build a power plant throughout Harmon in which could price a huge selection of countless dollars, inside huge portion in order to mothball previous power-generating units that will pollute the actual air, faces uncertainty.

Benavente mentioned several experts expect U.S