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Owner of notorious power plant would cut price by 50 per cent

Santo Domingo.- The power company of San Pedro de Macorís (CESPM), owner of the notorious plants Cogentrix, on Monday revealed its willingness to immediately cut the price per kilowatt-hour as much as 50% .

CESPM CEO Roberto Herrera said the reduction would be applied if an agreement is reached to convert the plants to combined cycle and the duration of the contract is extended to 20 years, or 12 more than the current contract.

The company negotiates with the Government to amend the contract and convert its power plant to use natural gas as base fuel, much cheaper than the current fuel oil.

Herrera said a contract extension is needed because United States natural gas suppliers require long term fuel purchase commitments.

Last week the State-owned Electric Utility (CDEEE) CEO Ruben Jimenez announced its willingness to extend the contract, but by only eight more years.

Investment

Interviewed on La Noa (95.7 FM), Herrera said to convert the plant to natural gas would cost US$65.0 million, which CESPM would invest entirely.

He explained that this entire process would allow it to supply energy at 9 cents US$ the kilowatt/hour, nearly half the current 18 cents.

Notorious

The contract with the Congentrix plants forces taxpayers to pay it US$4.0 million per month even when it’s shut down.

Source: DT

Category: DR News |

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Last updated December 4, 2016 at 11:02 PM
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