Residents could see $50 reduction in monthly GPA bill if proposal is OK'd

Monthly power prices could go down about $53 for the average home if a proposed 20.3% reduction in fuel recovery charge is approved. The Consolidated Commission on Utilities is expected to meet Nov. 26 to discuss, among other things, the proposed decrease, which will then go to the Public Utilities Commission for final review and approval.

Pending CCU and PUC approvals, customers could see the lower LEAC rate reflected in their bills starting Feb. 1, 2025.

The Guam Power Authority proposed the reduction in the charge, called the Levelized Energy Adjustment Clause, or LEAC, for the Feb. 1, 2025, through July 31, 2025,
billing period. The recommendation aims to lower the LEAC rate from $0.261995 to $0.208802 per kilowatt-hour, a 20.3% decrease. For the average residential customer using 1,000 kilowatt-hours per month, this adjustment would result in a 14.8% reduction in their total monthly electric bill, saving approximately $53.19.

According to the press release, the proposed reduction comes as GPA’s under-recovery balance is expected to reach a more manageable level of $4.3 million, following efforts to shield customers from abrupt rate increases during previous periods of high fuel prices. The adjustment reflects a decline in projected fuel costs, which GPA estimates to average $100.01 per barrel during the period.

"We know that energy costs have been weighing heavily on our customers, and this proposed decrease is a step toward easing that burden," said John M. Benavente, P.E., general manager of the Guam Power Authority. "While the cost of fuel remains unpredictable, we’ve worked hard to stabilize rates and reduce impacts on families and businesses. Every decision we make is based on our goal to deliver reliable power at the lowest cost possible on a sustained basis." mbj