Letter to the Editor: Why This Targeted Tariff Adjustment Is Responsible

By Rory J. Respicio
General Manager, Port Authority of Guam

The Port Authority of Guam has filed a petition with the Guam Public Utilities Commission to update a limited portion of its tariff. As the public review process moves forward, it is important to explain clearly what this filing does, what it does not do, and why it is being brought now.

This is not a general tariff increase and not a tariff rewrite. The last general tariff increase was approved in 2017 and phased out by 2020. Since that time, the Port has not adjusted its rates, despite changing market conditions over several years.

What is before the Commission is a targeted tariff adjustment that applies solely to labor and equipment billing for vessel operations. This includes third and fourth gangs, night shift differentials, deployment of a third gantry crane, and supervisor overtime. These services are already authorized in the tariff and are currently being performed by the Port. This filing updates how existing tariff provisions are applied so billing reflects current operational conditions and is carried out consistently and predictably.

The timing of this filing reflects restraint exercised in prior years. As stated in our testimony, the Port honored a request from the Governor not to pursue tariff increases in fiscal years 2022 and 2023. That request was tied to a $15 million American Rescue Plan grant awarded in fiscal year 2021 by Governor Lourdes A. Leon Guerrero and Lieutenant Governor Joshua F. Tenorio.

Since 2019, the Port has assumed increased operational responsibilities without expanding its workforce or increasing its monthly trustee allotment, which has remained at approximately $4.7 million. During this period, the Port stabilized its finances, maintained clean audits, improved bond ratings, and secured significant federal funding for infrastructure and port security improvements. These actions reflect disciplined financial management during a period of rising operational demands.

Throughout this time, the Port maintained uninterrupted operations while meeting administrative, operational, safety, security, and service requirements that support Guam’s supply chain and overall economic stability.

We recognize that families and businesses across our island and region are sensitive to costs. For that reason, the scope and impact of this filing were carefully evaluated and discussed with stakeholders before being brought to the Commission.

It is also important to clarify how percentage figures are often misunderstood. The phased adjustment, including the 17 percent component, applies only to specific labor and equipment line items within the tariff. It does not translate dollar for dollar to a consumer’s grocery bill.

To put this into practical terms, consider a common grocery item such as a canned good. The recent Business Privilege Tax rollback results in savings measured in cents at the retail level. By contrast, the Port tariff adjustment reflected in the record translates to a fraction of a cent per item. Put simply, the Business Privilege Tax rollback produces savings measured in cents, while the Port tariff adjustment is measured in hundredths of a cent per item.

In accordance with Public Law 26-23, the Guam Public Utilities Commission has scheduled community hearings to receive public input on this petition. The hearings will be held on Tuesday, January 20, 2026 at 6:30 p.m. at the GEC office Suite 205 Oka Building in Tamuning, Wednesday, January 21, 2026, at 6:30 p.m. at the Dededo Senior Citizens Center, and on Thursday, January 22, 2026, at 6:30 p.m. at the Asan Community Center.

We look forward to public participation and input on how fees may be structured within the tariff framework to meet public needs while maintaining a stable and predictable Port system for Guam and our region.

Rory J. Respicio is the general manager of the Port Authority of Guam.