26 Nov 2008

American Samoa Power Authority to take over Mobil's local service

9:16 pm on 26 November 2008

As of the start of next month, the American Samoa Power Authority, os ASPA, will import its own fuel and be a supplier for customers now serviced by Mobil Oil.

Mobil is terminating its local operations November 30.

At present ASPA buys its fuel from Mobil.

ASPA and Mobil have been negotiating since May of this year for ASPA to source its own fuel needs and supply existing Mobil customers when the oil company withdraws.

ASPA CEO Micahel Keyser stated this is the most significant opportunity to drive down electric costs in many years.

He said the revenue from this additional volume can be used to develop renewable energies.

He says the move will generate savings of US$1.2 million for ASPA.

The authority would also reap US$1.5 million in additional revenue from the added volume of fuel imports .

However critics of the plan say that ASPA is not set up to be a fuel supplier, that the utility is struggling to provide existing services, and that it will be subjected to stringent federal environmental regulations that can be very costly.