Eastern Power Solutions says its solar project is at risk unless the Commonwealth Public Utilities Commission reaches a decision by Oct. 31, a date the company says is required to keep its financing on track.
Eastern, which was selected by the Commonwealth Utilities Corporation last year as the winning bidder for the utility‑scale solar project, told the commission — the independent regulator that must approve all major CUC contracts — that it will withdraw its proposal if commissioners do not act by the end of the month.
Company co‑founder Daniel Myung, appearing virtually, said the deadline is tied to a strict financing sequence that cannot begin without CPUC approval. Because the commission must authorize the power purchase agreement before it can be signed, CPUC’s decision controls when Eastern can start securing long‑term federal financing, construction lending, and environmental work.
Myung said the project must be placed in service by Dec. 31, 2027, to qualify for federal tax‑equity financing, which covers roughly 30 percent of the project’s cost. Missing that deadline, he said, would make the proposal financially unworkable.
Commissioners spent much of Friday’s meeting questioning Eastern about liability and ownership, noting that the draft contracts list Naftan Solar — a special‑purpose vehicle owned by NESS Inc. — as the contracting party.
CPUC legal counsel James Sirok said the commission needs clarity on “who CUC can look at for liability purposes” if the project defaults years from now.
Eastern said it is willing to be added to the signature line of the CUC contract and to clarify the relationship between Eastern, NESS, and Naftan. However, lenders require the agreement to be signed only with Naftan.
CUC legal counsel Tina Ngo warned that if Eastern withdraws, CUC may have to restart negotiations with other bidders whose rates were significantly higher — some in the mid‑20‑cent range per kilowatt‑hour, compared with Eastern’s 18.5‑cent fixed rate for 25 years.
Ngo said losing Eastern “would be a great loss,” noting the company’s Pacific solar experience and the potential reduction in fuel‑adjustment charges for families.
Eastern said it remains committed to the project but cannot extend its internal deadline. The CPUC must now determine whether it can complete its review and vote before Oct. 31 — or risk losing the lowest‑cost solar proposal the CNMI has received.
