RE:RE:Sharing my thoughts
I don't think any of the 16 shovel ready projects will be rejected by the FOMB... hence the term "shovel ready". However, some of those who don't make the 150mw cut may decide not to renegotiate a lower rate. Although that seems unlikely too since the FOMB seems to have created this whole mess over a measly 0.4 c/kwh. Montalva will get done. Will it get done quickly under the current contract or will we miss the 150mw cut and need to delay everything to renegotiate... that's the question here. The FOMB is trying to save 0.4c/kwh across 443mw of projects which equates to tens of millions of dollars in savings each year as stated by the FOMB: "integrating a quarter (~150MW) of the Proposed Contracts capacity produces this differences by 0.4 c/kWh by FY2035, providing ~$20-30M in annual fuel and purchased power savings over the next 25 years." They are hung up on this point: "the 2020 Certified Fiscal Plan assumes new utility scale solar generation prices of 8 c/kWh in FY2023, increasing to 9.7 c/kWh in FY2049, while the Proposed Contracts, on average, start at 9.9 c/kWh, increasing to 14.1 c/kWh by FY2042." Although this ruling to nickel and dime all the projects was unexpected, to their credit the FOMB is willing to allow a quarter of the projects (or should I say capacity) through at these higher prices so as not to totally impede construction and the desperate need for electricity. It's my opinion that Montalva will get built but all this bureaucratic bickering has to be resolved first. I'm sure politics and even vindictiveness could come into play in PREPA deciding who to submit to FOMB for approval under their 150mw requirement but only Jeff would know if any of that is going on.