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PUC approves PD substation transformer procurement and three‑year diesel supply contracts; larger diesel generator request tabled
Summary
The commission authorized GPA to begin procurement to replace the PD substation T7 power transformer (estimated $2.82 million) and approved three‑year ultra‑low sulfur diesel supply contracts covering multiple plant sites (estimated three‑year total ~$170.5 million); a related generator purchase docket was tabled.
The PUC authorized procurement work for a replacement power transformer at GPA’s PD substation and approved multi‑site diesel fuel supply contracts while tabling a separate larger diesel‑generator purchase.
ALJ Fred reviewed the PD substation T7 replacement: the existing transformer failed in 2021, the estimated project cost is approximately $2,818,440, and installation requires coordination with U.S. Navy land‑use approvals and compliance with environmental and historic‑preservation conditions. The commission authorized GPA to begin procurement for design and build services and installation, testing and commissioning of the replacement transformer.
On fuel supply, legal counsel reported GPA solicited bids for ultra‑low sulfur diesel across multiple plant locations. Two responsive bidders — Mobil Oil Guam and IP&E Holdings — won lowest‑responsive bids across site clusters with service‑fee schedules varying by site (examples included first‑year fixed service fees in the high‑20¢ to mid‑40¢ per gallon range per site). Counsel said the three‑year expected cost for diesel supply under the contracts is about $170,495,460. The commission approved the contracts and included liquidated‑damages and delivery‑failure protections in the contract documents.
A separate GPA docket for larger diesel generators was tabled and expected to return when contract materials are ready for PUC review. The commission recorded motions and approved the transformer procurement authorization and the fuel contracts with recorded aye votes.
Next steps: GPA will initiate the T7 procurement, manage Navy and environmental approvals as required, and execute the diesel supply contracts beginning 01/01/2025 under the approved terms.
