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PUC approves solicitation for performance‑management contract for combustion turbines
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Summary
The commission approved GPA’s request to solicit a new performance‑management contractor (PMC) to maintain combustion turbine plants, continuing a program that began in 2016 and estimating procurement and O&M costs for planning purposes.
The Guam Public Utilities Commission on Jan. 30 approved the Guam Power Authority’s petition to solicit a performance‑management contract (PMC) for GPA’s combustion turbine (CT) power plants. The vote authorizes GPA to conduct the solicitation; a subsequent PUC docket will review and approve any awarded contract.
PUC staff noted the PMC arrangement has been in place since 2016 and that the incumbent (Themis) has maintained Dedido, Macheche and Jigo CT plants and other units under prior contracts. GPA said it needs continued PMC support to preserve reserve capacity, address aging equipment and maintain reliability while new resources (including the Ookodu plant and future Phase 4 renewables) come online. GPA told the commission forecasted load growth from military, commercial and government projects could add tens of megawatts of demand in the next five to ten years, which supports retaining CT capacity as a bridge resource.
The draft solicitation seeks a three‑year base term with two one‑year extensions. PUC staff estimated contract costs in the range of $5 million for the three‑year base term (about $2.4 million in fixed management fees and $2.6 million in reimbursable O&M) and noted capital improvement budgets developed with a PMC could push total project spending higher; staff attached historical cost summaries and availability improvements as exhibits. The ALJ observed projected capital improvement costs in later years could be substantial and recommended the solicitation proceed so the marketplace can set prices and proposals.
GPA General Manager John Benevente and commissioners emphasized the operational benefits of a PMC in Guam’s procurement environment, citing prior emergency repairs and projects completed under PMC oversight. Commissioner Pete moved to approve the solicitation; the motion was seconded and carried unanimously. GPA will solicit proposals and return to the PUC for contract award approval and final contract review.
