The Commonwealth Utilities Corp. wants AP Energy LLC to post between $183.77 million and $430.05 million in security if the Superior Court grants its renewed bid to temporarily stop the solar power agreement with Eastern Power Solutions.
In a 19-page opposition filed last Oct. 28, CUC, through legal counsel Tina Ngo, said the amount represents projected electricity cost savings over the proposed 25-year power purchase agreement that could be lost if the project is derailed. The savings would be passed on to ratepayers through lower fuel adjustment charges.
The figures are CUC's estimates, not court-determined damages.
CUC also warned that Eastern could withdraw from the project if the agreement is not signed by Oct. 31, jeopardizing federal solar tax credits covering 30% of the project's financing.
CUC executive director Kevin Watson, in a sworn declaration, said further delays could prevent Eastern from meeting the Dec. 31, 2027 project completion deadline needed to qualify for the tax credits.
“A TRO of even a few days would not preserve the status quo. It would end the project,” CUC argued.
AP Energy, through attorney Joseph E. Horey, filed a motion Oct. 26 to amend its petition for judicial review and renewed its TRO request, alleging that CUC disqualified AP Energy for failing to submit three years of audited financial statements while allowing Eastern to advance despite allegedly failing to meet the same requirement.
Citing testimony during the Oct. 23 Commonwealth Public Utilities Commission hearing, AP Energy argued that the different treatment violated its constitutional right to equal protection.
CUC disputed the claim, saying Eastern submitted audited financial statements for 2022 through 2024 from Primary Holdings Inc., which financially backs the Eastern group of companies. AP Energy, meanwhile, submitted unaudited statements for itself and related companies.
“The decisive difference is the one the Court already identified as central: independent verification,” CUC argued.
Watson said the only audited statements in AP Energy's proposal belonged to Hong Ye, a construction partner holding a 15% minority stake in the proposed project.
CUC also submitted an Oct. 21 letter from Peter Kim, chairman and co-founder of Eastern Power Solutions LLC and sole owner of Primary Holdings LLC, confirming the financial backing for the CNMI solar project.
“EPS has the full financial backing of Primary Holdings, and Primary Holdings is committed to continuing that support so that EPS and EPS CNMI can carry out their roles in the Project,” Kim wrote.
CUC also argued that AP Energy never formally protested Eastern's qualification or selection through the required administrative process. It noted that the Superior Court had already denied AP Energy's earlier TRO request on March 16.
The utility said the proposed solar project involves approximately $250 million in private investment for solar farms and battery storage systems on Saipan, Tinian, and Rota, with projected savings of up to $17 million annually.
CUC maintained that disqualifying Eastern would not automatically qualify AP Energy, whose original proposal still lacked the required audited statements.
The latest court battle comes as CPUC faces an Oct. 29 deadline to act on the proposed power purchase agreement, although approval is not guaranteed.
CUC has asked the Superior Court to deny AP Energy's motion to amend its petition and renewed TRO request. No ruling on the latest motions was reflected in the Oct. 28 filings.
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