1998News

CDE expects arbitrage court judgment for May

The general manager of the Corporación Dominicana de Electricidad (CDE), engineer Radhamés Segura said that the international arbitrage court that has reviewed the dispute between the Smith-Enron power generation company and the Dominican government electricity utility will give its judgment in early May. Hearings were held at arbitrage courts in New York and Mexico. The private power utility and the government entity are at odds because the CDE says that the Smith-Enron is charging for installed capacity in addition to energy served. Smith-Enron says that the CDE has not been fulfilling the contract and paying for services rendered. News reports indicate that at the present time, the Smith Enron power plant is producing only 40% of its capacity, as it is subject to maintenance. Press ports also have indicated that the Smith Enron power plant has had problems since the start because it was the wrong plant for the wrong site. It is located adjacent to the Atlantic Ocean.