Commonwealth Utilities Corporation Photo: RNZ Pacific / Mark Rabago
The main power utility in the Commonwealth of the Northern Mariana Islands is preparing to seek up to US$700 million in US federal grants to replace aging diesel generators and upgrade key electricity infrastructure.
It comes as Washington signals stronger support for energy projects tied to the region's strategic importance.
The Commonwealth Utilities Corporation (CUC) outlined the funding push during a special board meeting on Saipan last week, following discussions with US agencies including the Department of the Interior and the Federal Emergency Management Agency (FEMA).
CUC executive director Kevin Watson said the proposed funding would be used to replace failing diesel engines at power plants across the islands, improve transmission reliability, and support other priority projects, including underground power lines serving the Commonwealth Health Center.
He said federal officials had expressed strong interest in the proposal, particularly as U.S. defence activity expands in the region and energy reliability becomes a national security concern.
Watson said the US administration is emphasising affordability, resilience, and security in its approach to territorial energy systems.
The CUC has already secured about US$7m in energy-related grants. Photo: RNZ Pacific / Mark Rabago
CUC has already secured about US$7m in energy-related grants, including funding for a new generator on Rota, battery storage, and advanced metering, with additional applications now being prepared.
The coorporation's board chair Allen Perez said replacing generators through grant funding was the corporation's top priority, noting that the utility does not have the cash flow to finance major generation upgrades on its own.
The funding discussion came during the same meeting in which the CUC board upheld management's decision to disqualify AP Energy from the first phase of a major power procurement, rejecting the company's appeal and preventing it from advancing to the next stage.
AP Energy said it respected the board's decision but indicated it plans to pursue further appeals, arguing that its proposal met the requirements set out in the request for proposals and that the procurement process should be applied consistently and fairly.
The board also gave final approval to a new procurement rule requiring companies to post a protest bond equal to 15 percent of a project's value when filing a bid protest or appeal.
CUC's legal counsel said the measure is intended to deter frivolous challenges as the utility moves forward with large, grant-funded energy projects.
The regulation will take effect later this month following publication in the Commonwealth Register.
