Warning that delays could jeopardize critical federal tax credits needed to finance the project, Gov. David Apatang has thrown his support behind a proposed solar energy development that officials estimate could save CUC customers between $7 million and $17 million a year.
In a letter dated Oct. 20 to Commonwealth Public Utilities Commission acting Chairman Bruce Camacho, Apatang urged regulators to approve the proposed power purchase agreement between the Commonwealth Utilities Corporation and Naftan Solar LLC, calling the project essential to lowering power costs and reducing the CNMI's dependence on imported diesel fuel.
The proposal calls for the construction of solar power facilities with battery energy storage systems on Saipan, Tinian and Rota. According to the governor, the project would supply more than 123 million kilowatt-hours of electricity annually and provide long-term price stability through a fixed 18.5-cent per kilowatt-hour rate over 25 years.
Apatang noted that the estimated $224.9 million construction cost would be fully financed by the developer, Easter Power Solutions CNMI Inc., resulting in no construction cost to CUC or the CNMI government.
The governor emphasized the urgency of regulatory approval, citing changes to federal tax incentives that could affect the project's financing. According to the letter, the developer faces an Oct. 31 deadline for project approval to secure financing arrangements tied to available federal tax credits.
"Our people are suffering from the high cost of utilities on top of an economic downturn," Apatang wrote. "This project is essential to bringing down costs and making power more affordable for our people."
Apatang's endorsement comes as numerous residents voiced support for the project during a series of public hearings. Supporters told the commission the project could provide much-needed relief from high electricity bills while advancing the commonwealth's transition to renewable energy.
"Time is of the essence for this project to break ground before it's too late," Apatang wrote. "I strongly urge the CPUC to approve this project and make power more affordable for the residents of our islands."
The CPUC is continuing its review of the proposed agreement.
