By John O’Connor
For Variety
HAGÅTÑA (The Guam Daily Post) — The Public Utilities Commission has approved the base rate increase and the reduction in the Levelized Energy Adjustment Clause for Guam Power Authority billings.
These adjustments would take effect Jan. 1, 2026.
Both adjustments happening at the same time means power bills will go up by some dollars for most residential customers. The total bill for the average GPA residential customer using 1,000 kilowatt-hours per month would increase by about $10.
The impact on total monthly bills was initially anticipated to be $8.12, based on the base rate and LEAC petitions submitted by GPA. However, a PUC consultant recommended changes.
The base rate increase includes a hike in the monthly customer charge, which is a fixed amount. GPA proposed raising it by $5 for residential customers, from $15 per month to $20 per month. But the PUC consultant recommended increasing the charge to $25 per month.
In exchange, the consultant proposed lowering the base rate price for the first 500 kilowatt-hours used.
“Theoretically, it’s supposed to be a wash. But when I did the calculation, they were off by $2,” GPA Chief Financial Officer John Kim said Monday night.
The base rate and LEAC are two major components of a power bill.
The base rate has remained the same since 2013, but GPA proposed increasing it to help pay for costs associated with the new power plant in Ukudu.
The LEAC is the portion of the power bill that largely pays for the cost of fuel. GPA proposed reducing the LEAC to 13.58 cents per kWh from 15.5 cents per kWh. The Ukudu plant is also said to be more fuel efficient and is expected to reduce GPA’s fuel imports by more than 900,000 per year.
Normally, the LEAC would be adjusted in February, but GPA General Manager John Benavente previously stated that the utility may want to target Jan. 1 to avoid a situation where bills go up for a month due to the base rate increase before falling because of the LEAC reduction.
The PUC held three public hearings on the base rate increase before last night’s decision, but the hearings garnered very little public participation.
