14 Dec 2006

American Samoan power authority negotiating new deal with canneries

2:42 pm on 14 December 2006

Negotiations are continuing between the American Samoa Power Authority and the territory's two canneries on power charges following the expiry of a ten year power purchase agreement between the two sides.

The agreement provided a special power rate and ensured that they would remain ASPA customers instead of producing their own power.

The ASPA wants to increase the rate now that the agreement has expired.

Our correspondent in Pago Pago says one of the canneries has made enquiries about setting up its own power generation and has consulted with a former ASPA engineer.

ASPA chairman Fepuleai Afa Ripley has confirmed that negotiations are still continuing but declined to give any further details as talks are still in progress.

Our correspondent says it is understood that Star Kist Samoa recently met the Governor Togiola Tulafono and had been given assurances that power rates charged under the old agreement would not be changed.