Marianas Variety

Last updateWed, 22 Nov 2017 12am

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    Tuesday, November 21, 2017-12:23:08P.M.

     

     

     

     

     

Guam Waterworks Authority eyes rate increase

HAGÅTÑA (The Guam Daily Post) — The Guam Waterworks Authority is seeking a 4 percent rate increase as it enters the final fiscal year of its five-year rate plan.

Unlike the prior year — when the anticipated rate increase was cut by half — the increase proposed during a work session with the Consolidated Commission on Utilities on Wednesday remains unchanged from what had been programmed into the plan, as the utility’s yearly debt payment is anticipated to rise by about $5 million next year to $29 million annually.

“What does this mean for the ratepayer?” said Gregg Cruz, the utility’s chief financial officer.

“If you are an average ratepayer using about 7,500 gallons of water every month, you’re going to see your monthly water and wastewater bill increase by about $2. About 50 percent of our customers use less than 5,000 gallons a month. Their bill is going to increase by $1.”

The rate increase will generate about $5 million in additional revenue for GWA, Cruz added. (JOC)

Higher-than-expected revenues in fiscal year 2016 prompted CCU members and GWA management to request for a 3.5 percent rate increase to the Public Utilities Commission last year, as opposed to the projected 7 percent increase. However, revenues in fiscal 2017 have not kept pace with projections due in part to problematic water meters, which GWA is now addressing.