After weeks of public hearings, scrutiny and debate, CNMI regulators on Thursday approved a landmark solar power project that officials say could reduce the commonwealth's dependence on imported fuel and bring long-term savings to utility customers.
The Commonwealth Public Utilities Commission voted unanimously to approve the power purchase agreement and related contracts between the Commonwealth Utilities Corp. and developer Eastern Power Solutions, clearing a major hurdle for the proposed $500 million renewable energy initiative.
The project would establish a utility-scale solar and battery energy storage system for CUC and has drawn significant public attention amid concerns over its costs, financing structure and long-term impact on ratepayers.
The vote came just two days before an Oct. 31 deadline set by Eastern Power Solutions, which previously warned regulators it would withdraw its proposal if a decision was not reached. The company said the deadline was tied to financing requirements and a Dec. 31, 2027, federal tax-credit deadline critical to the project's economic viability.
Acting Chair Bruce Camacho and Commissioner Jack Angelo voted in person, while Commissioner James Mendiola participated virtually from Tinian.
"We've had a great turnout. We've had a lot of great public input," Mendiola said before the vote. He said commissioners had spent countless hours reviewing the extensive legal and financial documentation supporting the project.
"There are no easy decisions for the CNMI," Mendiola said. "There's an element of risk on both sides, and we have to weigh the risk."
Camacho said commissioners thoroughly reviewed the proposal despite concerns raised in public testimony and written comments.
"I think we've done everything on our side to properly review this proposal," he said.
Angelo rejected suggestions that the commission was responsible for delays, noting regulators identified issues involving land documentation and liability protections that required correction before approval.
"Our goal was to protect the ratepayers, but also regulate and oversee the utilities," Angelo said.
CPUC legal counsel James Sirok said concerns raised during the review process were adequately addressed and that nothing remained that should prevent commissioners from voting on the proposal.
Following the vote, CUC Executive Director Kevin Watson said the project represents a significant step toward modernizing the commonwealth's power system.
"We're on the way to making improvements within the utilities and CNMI, and these improvements will help our customers bring us forward with renewable power," Watson told reporters.
Watson said electricity generated under the agreement is expected to cost about 18.5 cents per kilowatt-hour for 25 years without escalation, compared with roughly 44 cents per kilowatt-hour today.
While immediate savings are not expected, Watson said lower fuel costs could begin benefiting customers once construction is completed and the solar facilities begin generating power, likely in 2028.
The primary solar facility is planned for the Naftan area near Saipan International Airport. Watson said CUC hopes to break ground soon and celebrate the project's launch with the community in the coming weeks.
