The Guam Power Authority (GPA) entered into a contract with HEI Power Corporation/Guam (HPG) on September 30, 1996 to have the latter take over the management of the Tanguisson Power Plant. The actual transfer of administration of the facility from GPA to HPG was effective on November 11, 1996. This contract, referred to as the Energy Conversion Agreement (ECA), stipulates that HPG will refurbish, operate, and maintain the power plant in such a way that it will again produce electricity to its full capacity of approximately 50 megawatts.
Currently the plant is able to generate only about 1. 5 megawatts because both generating units at the plant are in a state of disrepair. The units were installed 20 years ago. Maintenance and replacement of parts in the last several years has been inadequate to run the plant efficiently.
Under the terms of the ECA, all 43 employees at Tanguisson will remain on the GPA payroll. Supervision by HPG will operate within Guam Civil. Service Regulations. Replacements of these employees will also be under GPA control. HPG, however, will have the power to fill four positions the plant superintendent, operations manager, maintenance manager, and general accountant.
HPG contracted with James Kent (CSEPP Senior Advisor) and Eric Casiño of James Kent Associates (JKA), to assist HPG with the cultural aspects of the takeover and the reorganization process. JKA was retained on the assumption that bringing Tanguisson back to full capacity will require not only technical but also organizational overhaul within a cultural context.
The initial assignment was to conduct a “situation assessment” of the cultural and social setting of the Tanguisson workforce and management for the purpose of improving morale, communication, and productivity. During the situation assessment period (which is distinct from the technical evaluation of the entire plant and its equipment to be done by HPG), the consultants gained the confidence of the many workers they met and interviewed. For this reason, this report will maintain that trust and confidentiality;
no names of sources of information will be given. The following report embodies a description of the (1) Assessment / Discovery Process™, (2) Findings, (3) Recommendations, and (4) Future Directions.