NOTICE OF INTENT TO ENTER INTO NEGOTIATIONS WITH HAWAIIAN ELECTRIC COMPANY, INC. PURPOSE: This is a notice of intent to enter into negotiations with Hawaiian Electric Company, Inc. (HECO) under Contract N62742-68-C-0001 to pursue privatization of the electrical distribution system at Naval Air Station, Barbers Point, Hawaii (NASBP) in accordance with 10 USC 2688 and Secretary of Defense Defense Reform Initiative Report dated November 1997. Other qualified and interested sources shall notify the contracting officer at the following address: Commander, Naval Facilities Engineering Command, Pacific Division, BOS 1 Contracts Branch (Attn: Code 0221), Pearl Harbor, HI 96860-7300; and provide a statement of interest on company letterhead (not to exceed 20 pages in length) no later than May 1, 1998 which includes as a minimum the following: (1) understanding of federal, state (to include Hawaii Revised Statutes, Chapter 269), and local laws and regulations affecting utilities in the State of Hawaii; familiarity and experience with State of Hawaii and US Environmental Protection Agency, Region-9, environmental compliance procedures; (2) capability and experience in the ownership, operation and maintenance of similar electrical utility systems; (3) financial capacity to purchase, expand, and operate an electrical utility system; (4) a statement showing an understanding of the obligation to serve in regards to utility services; (5) a statement showing an understanding that a certificate of public convenience and necessity will be obtained in time to allow for retail sale of electric service by July 2, 1999. OBJECTIVE: Should privatization prove to be economical, it will include the transfer of ownership, operation, and maintenance of the electrical distribution system. It is intended that privatization will reduce the Navy's life cycle costs. SYSTEM DESCRIPTION: The following general description is provided to give an approximation of the size and scope of the electrical distribution system at NASBP. NASBP covers an area roughly three miles long and two miles wide (approximately 3,600 acres) located west of Pearl Harbor on the Island of Oahu, Hawaii. The electrical distribution system at NASBP is currently owned, operated, and maintained by Navy Public Works Center (PWC), Pearl Harbor. The system serves both the areas to be retained by the Navy for family housing and support services (as designated by the Federal Base Realignment and Closure [BRAC] Commission) as well as the areas not to be retained. Three of NASBP's main distribution substations are served directly by HECO through HECO's two 46-kV subtransmission loops. A fourth NASBP main distribution substation is served through NASBP's 12,140 linear feet (2.3 circuit miles) of subtransmission. After the voltage is reduced to 4.16-kV and 11.5-kV, the electric power is distributed throughout NASBP via 312,600 linear feet (59.2 circuit miles) of overhead and underground primary and secondary distribution line. The distribution system consists primarily of overhead, pole-line construction (which is conventional, open-wire construction) with pole-mounted transformer banks. There is also a substantial amount of underground primary construction, utilizing predominantly duct type construction practices. In 1997, the system peak demand was 9.28 MW, and total energy consumption was 55,656 MWH.

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