SPC and PPA are working together to review tariffs for the Kosrae Utility Authority (KUA), including estimating investment requirements to meet demand, calculating the long-run marginal cost of supply, estimating revenue requirements under several scenarios, identifying fuel adjustment mechanisms, and assessing the appropriateness of current base tariff.
19 March 2012: The Secretariat of the Pacific Community (SPC) and the Pacific Power Association (PPA) have announced they are working together to assist the Federated States of Micronesia (FSM) in reviewing energy tariffs and developing a scope of work for the rehabilitation of the Nanpil hydro plant in Pohnpei.
SPC and PPA are working together to review tariffs for the Kosrae Utility Authority (KUA), including estimating investment requirements to meet demand, calculating the long-run marginal cost of supply, estimating revenue requirements under several scenarios, identifying fuel adjustment mechanisms, and assessing the appropriateness of current base tariffs. SPC and PPA are also assisting FSM in developing the scope of work required to rehabilitate the Nanpil hydro plant. FSM wishes to reduce dependency on fossil fuels, and rehabilitating the 725kW capacity hydro plant has the potential to contribute at least 7% of the total annual electricity generation of the Pohnpei Utility Corporation. This equates to a potential saving 182,000 gallons of diesel.
The activities are funded by the European Union North Pacific ACP Renewable Energy and Energy Efficiency Project (North-REP), and is being implemented by the SPC. [SPC Press Release]