By Gerardo R. Partido
Variety News Staff

COMPARED to other islands in the region, the Guam Power Authority’s residential rate of 17.86 cents per kilowatt hour as of February 2007 is still relatively low.
The Office of the Public Auditor, in its latest report on the utility, said GPA’s power rates are still lower than the Commonwealth of the Northern Mariana Islands at 31 cents per KWh and the Hawaiian Islands, which range from 20.60 to 24.10 cents per KWh.
According to OPA, the cost to Guam consumers is lower than those of the other islands’ due to the high rate of generation of GPA’s baseload units and because many of GPA’s plants burn sulfur oil rather than diesel.
But compared to the mainland U.S. utilities, GPA’s power rates are higher.
For instance, the rate charged by San Diego Gas and Electric is 16.60 cents per KWh while Southern California Edison charges 12.95 cents per KWh.
But OPA also pointed out that Guam and mainland power rates are not strictly comparable because GPA is dependent on fossil fuel for its source of energy, while the states have alternative energy sources such as hydroelectricity, gas, coal and wind.
The mainland utilities also have greater economies of scale due to the bigger population base in the states.
Although its rates are still relatively cheaper, GPA last January implemented a fuel surcharge to recover the losses it incurred due to the increase in the price of oil.
Fuel prices have been surging in the last few years, and the per barrel price has increased from $36.55 in 2005 to $52.45 in 2006.
With the spiraling cost of fuel, GPA is following the U.S. mainland’s example and is looking at alternative renewable energy sources to lessen its reliance on oil.
GPA is particularly looking at Hawaii as a model for tapping renewable energy sources.
According to GPA, Guam and Hawaii are similar in that they are both surrounded by water and their economies are driven by tourism which consumes the most electricity.
One of the alternative energy sources that GPA is looking at is the use of ocean water as a new source of air-conditioning for the many hotels along Tumon.
Also known as “deep-source cooling,” the process uses water pumped from the cold depths of the ocean to cool adjacent buildings.
The technology is described as a clean, renewable, and sustainable alternative to conventional air conditioning and is already used around the world.