By Gerardo R. Partido
Variety News Staff

THE Guam Public School System narrowly averted a power shutdown yesterday after it managed to cough up more than $1 million to pay its arrears with the Guam Power Authority.
According to GPA public information officer Art Perez, GPSS was able to remit $1,040,000 to the utility before noon yesterday.
Had GPSS not been able to pay up at the end of business day yesterday, the power utility would have started disconnecting power to the public school system’s administrative offices.
GPA only allows a 45-day grace period for its customers and officials said they can’t treat GPSS any different from other customers because the utility has to be consistent in its collection policies.
The money remitted yesterday was enough to cover GPSS’s current $952,000 debt to GPA.
But Perez said this only took care of the public school system’s December power billing. At the end of the month, GPSS will be facing another huge bill of $819,000 to cover its January power bills.
All in all, GPSS still owes GPA more than $12 million for unpaid power usage over the years.
GPSS has said that it will pay off all its debts with GPA once GovGuam is able to successfully issue bonds.
In April 2003, Public Law 27-19 authorized GovGuam to borrow up to $218 million in the bond market.
But the original agreement was amended due to concerns raised by the attorney general as to whether GovGuam has reached its debt ceiling and can no longer borrow.
GPSS has since been making only token payments to GPA to cover its $12 million arrears. Yesterday, GPSS was only able to remit $150,000 on the promissory note it signed with GPA.
Although GPA is aware of the public school system’s importance, Perez said it would have no choice but to issue another disconnection notice at the end of the month if GPSS does not pay up.
According to Perez, GPA always issues disconnection warnings to the public and residents may find it unfair if government agencies are given extra slack.