GPA and the CCU are defending their plans for a new 198-megawatt power plant.
Early on, senators raised concerns over one of the partners in the deal, but ultimately the oversight hearing settled into a debate over conventional versus renewable energy.

The Guam Power Authority and the Consolidated Commissions on Utility are defending their plans for a new 198-megawatt power plant.

Early on, senators raised concerns over one of the partners in the deal, but ultimately the oversight hearing settled into a debate over conventional versus renewable energy.

Utilities Chair Sen. Clynt Ridgell has opposed the proposed contract, in part because partner Korea East West Power, who was in charge of the Cabras power plant when it exploded in August 2015, has been sued by the company that insured the plant.

GPA received a $120 million settlement and says it's not involved in the legal dispute over who's to blame for the explosion. And, CCU member Michael Limtiaco says he's confident there are enough safeguards in place to ensure contract performance.

"This company does business throughout the world. They've potentially had other issues along the way, no company is gonna operate at the 100-percent perfect track record," Limtiaco said. "But I think the key is, are they going to perform. They bear all the risk. In fact, the solicitation required them to put up 20-percent of their own money. So if the plant ends up costing $600 million, they're on the hook for $120 million of their own money."

But eventually, the discussion shifted to the more fundamental debate over fossil fuels and renewables.