The Consolidated Commission on Utilities on Feb. 25 approved a Guam Power Authorization petition to increase the base rate by 3 cents per kWh for the average ratepayer.
GPA will formally file its petition to the Public Utilities Commission by late May or early June. If approved by the, the rate change will take effect Sept 1.
To offset the increase, GPA announced that it would introduce a reduction in the Levelized Energy Adjustment Clause in May.
According to GPA, ratepayers would see a 13 cent to 14 cent decrease per kWh in LEAC on their monthly power bill. GPA said that LEAC represents approximately 68% of an average customer’s power bill.
GPA proposed the base rate increase at the CCU’s Feb. 20 work session to petition the PUC for the Base Rate Adjustment to cover the costs associated with the Ukudu Power Plant.
According to GPA, the plant’s financial obligations begin on Sept. 1 which requires stable funding to meet its debt obligations upon the plant’s commissioning.
GPA anticipates that together, the LEAC reduction and the Base Rate Adjustment would result in a net reduction of approximately $42 per month for the average customer.
LEAC rates are tied to global fuel prices and according to GPA, the closure of the Cabras 1 and 2 and the addition of the Ukudu plant would result in lower, more efficient, fuel consumption to lower rates going forward.
GPA said that the Ukudu plant is 37% more fuel efficient versus Cabras 1 and 2 which would reduce fuel imports by 900,000 barrels per year. mbj
GPA Base Rate Increase Pending PUC Approval; Proposed Fuel Rate Decrease to Help Offset Monthly Power Bill Increase
GPA Base Rate Increase Pending PUC Approval; Proposed Fuel Rate Decrease to Help Offset Monthly Power Bill Increase
- Date Posted: Feb 27, 2025
- News: Guam
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GPA Base Rate Increase Pending PUC Approval; Proposed Fuel Rate Decrease to Help Offset Monthly Power Bill Increase