One Nation, One Power Company

A MESSAGE FROM MARSHALLS ENERGY COMPANY

 

Majuro, Marshall Islands – For as long as most of us can remember, the power in our homes and the lights in our schools and clinics have come from two different companies. Today, that changes — and it changes for the better.

Cabinet has approved the merger of KAJUR and Marshalls Energy Company (MEC) into a single national electricity company. The people who power Majuro and the people who power Ebeye, along with the teams serving Wotje, Jaluit, and Kili (and soon the new mini-grid communities of Arno, Ine, Matolen, Jabo in Arno Atoll under our REGAIN program) will be one company, working under one roof, for one purpose: to give every family we serve the reliable, affordable, and modern electricity service they deserve.

A vision shared, a vision delivered

Change of this size does not happen by accident. It happens because people choose to lead.

MEC wishes to recognize our Board of Directors, who saw early on that the islands we serve would be stronger and better served under a single, unified utility, and who carried that vision through years of patient preparation. The Joint Board Resolution that paved the way for this merger reflects courage and clarity of purpose, and we are grateful to every member who supported it.

We also want to give special recognition to the leadership of Kwajalein Atoll. The traditional leaders, senators, and community leaders of Kwajalein looked closely at this merger and chose to support it. Not because the decision was easy, but because they saw what it could mean for the future of Ebeye. That kind of leadership puts the long-term good of the people ahead of short-term comfort, and we honor it.

And we thank the President and members of Cabinet for approving this merger. Cabinet’s decision opens the door to a stronger, fairer electricity service across all the islands we serve. It is the right decision, and we are deeply grateful for it.

Why one utility makes sense for our islands

For families and businesses across the islands we serve, the question worth asking is simple: how does this actually help me? The answer comes in two parts: 1) efficiency and 2) finance. And they both lead to the same place: better service for you.

1) Efficiency — getting more from what we have

• One team, deployed where it is needed most. When a generator on Wotje needs urgent attention, engineers from across the network can step in. When a storm hits Ebeye, more hands are available to restore service quickly. Spare parts and equipment can move between islands, so problems get fixed faster.
• One plan for the whole network. Decisions about generators, fuel supply, renewable energy, and grid upgrades will be made for all the islands we serve together. That means smarter investment and fewer wasted resources.
• One office doing the work of two. No more duplicated billing systems, finance functions, IT systems, or corporate overheads. Money that used to be spent on running two separate companies can now be redirected into the service that actually reaches your home.

2) Finance — making every dollar work harder

• Bulk buying power. Together, we purchase more fuel, more lube oil, more equipment, and more parts than either company did alone. Suppliers offer better prices to larger customers, and those savings stay in our system.
• Stronger donor partnerships. The World Bank, Asian Development Bank, and other partners can invest in one strong utility company with confidence. That brings more solar, more battery storage, and more modern infrastructure to the islands we serve.
• On-time audits, stronger donor confidence. With Ebeye’s operations now part of MEC’s single audit cycle, the audits covering Ebeye will be completed on time. Donors place a high value on timely, transparent reporting, and that confidence is what encourages continued investment in our communities, including through Compact funding and other US federal grant programs.
• Lower cost of service over time. As we remove duplication and operate more efficiently, our cost base comes down. That puts us in a stronger position to keep electricity affordable and to support the communities that need it most.

Put simply: one utility serving our islands is more efficient, more financially sound, and better able to deliver the service our customers deserve.

What this means for you

Whether you live in Majuro, Ebeye, Wotje, Jaluit, Kili, or in one of the communities in Arno Atoll soon to be connected under REGAIN, this merger has been designed with you in mind. Here is what it means in plain terms:

• One company, one standard of service. No matter where you live, you will be served by the same utility, held to the same standards, and treated with the same level of care. The quality of service should not depend on which island you call home.
• Stronger, faster response when things go wrong. A bigger national team means more engineers, more spare parts, and more hands available to get the power back on quickly when problems arise.
• More renewable energy across the islands we serve. As one power company, the benefits of solar and battery projects funded by our donor partners can be shared more fairly across all our customers, reducing our dependence on imported diesel fuel, which should lead to lower electricity tariffs.

A special word to our community on Ebeye

A few words for our customers, friends and families on Ebeye.

We know the people of Ebeye have shown extraordinary patience over the years. You have continued to work, to raise your families, and to build your community even when the power was not always reliable, even when the water did not always flow as it should. That patience deserves a real response, and that is what this merger is about.

Here is what we want you to know:

• Your local team stays local. The people who serve you today, i.e. the linesmen, the operators, the office staff, are staying. They are joining MEC as the MEC Kwajalein Division, with the same local leadership continuing to lead the team on the ground. The faces you know will keep showing up for you.
• Your jobs are protected. Every current KAJUR employee will be retained. Ebeye is not losing positions in this merger. Local employment is part of the foundation we are building on.
• Your service does not stop. Power will keep flowing to your home, your school, and your hospital before, during, and after this transition. There is no plan that puts your service at risk. In fact, the whole point is the opposite.
• Your Impact Fund continues. The Kwajalein Impact Fund subsidy will continue, directed to the MEC Kwajalein Division, and the Government has committed to additional support so that the merger strengthens, rather than reduces, what is provided to Kwajalein.

Ebeye is not being merged away. Ebeye is being lifted up.

Turning plans into power across Kwajalein Atoll

The merger does more than join two companies. It brings the people of Kwajalein Atoll closer to the electricity projects that have been on the drawing board for too long.

The electrification of Santo Island is one clear example. Design and planning work for Santo has been underway, and the community has been waiting. Turning plans into power on the ground takes more than paper. It takes experienced project managers, qualified engineers, working partnerships with donor agencies, procurement capability, and the operational know-how to install, commission, and maintain new infrastructure. As one unified utility, MEC now brings all of this under one roof, and makes it available to every Kwajalein Atoll community whose project has been waiting.

MEC has spent years developing the kind of delivery capability needed to bring projects like this to life. Under the World Bank’s SEDeP program, we delivered major solar PV and battery storage infrastructure on Majuro. Through the REGAIN program now underway, we are bringing additional solar PV and battery storage online, alongside renewable energy mini-grids for several outer islands. We have project managers who understand donor procurement, engineers who design for outer island conditions, field teams who install and commission new systems, and working partnerships with the World Bank, ADB, and other donors that help bring funding home. The same capability and the same expertise are now fully available to Santo, and to any other community in Kwajalein Atoll with electrification or renewable energy plans in the pipeline.

The families of Santo Island have been waiting for the day their homes are connected to a reliable source of power. That day is coming. It is coming for the child who will study after dark without a kerosene lamp, for the family who can finally keep food and medicine cool, for the small business that can open its doors with confidence. And it is coming sooner because we are now one team.

Looking forward together

Energy is more than just a service. It is what keeps the lights on at the school where your children learn. It is what runs the refrigerator that keeps your family’s food fresh. It is what powers the clinic where your parents are treated. It is what makes life on these islands possible.

By bringing our two companies together, we are taking a sensible, practical step toward a stronger electricity company. One that will be better equipped to handle the challenges ahead, from rising fuel costs to the urgent shift to renewable energy.

To our customers across Majuro, Ebeye, Wotje, Jaluit, Kili, and the new communities soon to join us: thank you for your patience, your trust, and your loyalty. To our team members, on both sides of this merger: thank you for the work you do every day, and for the work we will do together in the months and years ahead.

We are one team. From today, we are one power company. And the best chapter is the one we are about to write together.

//s// Jack S. Chong-Gum

MEC/KAJUR CEO